This is to let you know that the President signed the New Investment (Support) Act ("NISA") on 1 June 2018.

NISA determines new rules according to which support in the form of income tax relief may be offered to undertakings for implementing new investment projects in the territory of Poland. The new support rules will exist alongside the current system of relief and exemptions for businesses operating in special economic zones. The special economic zone regulations will continue in force until the end of 2026, but after NISA becomes effective, no new business franchises will be issued under the Special Economic Zones Act of 20 October 1994.

Some of the NISA solutions are described below:

· Support may be offered for businesses in the entire country, rather than just those located in the 14 special economic zones, as was the case before.

· Support will be granted for a fixed term of no less than 10 and no more than 15 years. The exact term will depend on the state aid intensity in the given area. If the new project is located in any of the special economic zones (these will continue in existence until 2026), support will be granted for a term of 15 years.

· Support will be available for new investments that satisfy:

  • quantitative criteria (minimum eligible costs to be incurred by the undertaking, depending on the unemployment rate in the county where the new project is to be sited), and
  • qualitative criteria (conformity with the medium-term development strategy as defined in the Development Policy (Conduct) Act of 6 December 2006, in relation to structural development, scientific development, sustainable development, human resources development, etc.).

· The eligible costs threshold is lower:

  • by 80% for investments in modern business services and R&D,
  • by 98% for micro-enterprises,
  • by 95% for small enterprises,
  • by 80% for medium enterprises.

NISA will enter into force 14 days after its publication, except that some of its provisions which amend the Special Economic Zones Act will enter into force 12 months after publication.

If this issue pertains to your business and you are interested in our assistance, please contact your WTS&SAJA consultant or our office.

Doradztwo Podatkowe WTS&SAJA Sp. z o.o.

Bałtyk Building, 13th floor

ul. Roosevelta 22

60-829 Poznań

tel. (+48) 61 643 45 50

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02-001 Warszawa

This Newsletter is provided for general information purposes to keep you up-to-date with changes in tax law, tax rulings by authorities, case law of courts and interesting commentaries.Doradztwo Podatkowe WTS&SAJA shall not be held legally liable for any acts or omissions resulting from reliance on such information.

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