Property tax exemption under the regional investment aid

The exemption applies to newly constructed buildings and objects used for running a business, owned by taxpayers and which are an initial investment as a result of which new workplaces will be created.

 

An initial investment is considered to be newly constructed buildings or objects, i.e. the construction of which was commenced after the date of the entry into force of the resolution, provided that newly constructed buildings are not considered to be those which have been expanded, rebuilt, modernised or renovated.

 

The exemption applies to properties related to the initial investment and at which new workplaces were created if:

 

1) at least 5 new workplaces were created in relation to the initial investment – in the case of initial investments in real estate owned by micro and small enterprises,

 

2) at least 15 new workplaces were created in relation to the initial investment – in the case of investments in real estate owned by medium-sized enterprises,

 

3) at least 50 new workplaces were created in relation to the initial investment – in the case of investments in real estate owned by other enterprises than those listed in points 1-2 above.

 

The creation of new workplaces must take place within one year from the completion of the initial investment.

 

Exemption from property tax does not apply to:

 

1) buildings used for commercial activities and structures associated with these buildings when the surface used for commercial activities is more than 10m2 of the total area of the initial investment,

 

2) buildings associated with the operation of petrol stations and structures associated with these buildings,

 

3) buildings associated with the operation of finance institutions and structures associated with these buildings when the surface used for financial activities is more than 10m2 of the total area of the initial investment,

 

4) buildings associated with logistics, shipment and warehousing activities and structures associated with these buildings.

 

The property tax exemption shall be in effect from 1st January of the year following the year in which the construction of new buildings and structures was completed, in accordance with the provisions of the Act of 12th January 1991 on taxes and local fees and is granted for the period of 3 years.

 

An entrepreneur who applies for aid on the basis of the resolution (exemption from property tax under the regional investment aid) is obliged to notify the intention to benefit from this assistance in writing and prior to the commencement of the initial investment but not later than on 31st December 2020.

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Exemption from the property tax under de minimis aid

The exemption applies to buildings and structures which are a part of a new investment and in which new workplaces were created in association with the new investment if:

 

  1. at least 5 new workplaces were created in relation to the new investment – in the case of investments in real estate owned by micro and small enterprises,
  2. at least 15 new workplaces were created in relation to the new investment – in the case of investments in real estate owned by medium-sized enterprises,
  3. at least 50 new workplaces were created in relation to the new investment – in the case of investments in real estate owned by other enterprises than those listed in points 1-2 above.

 

The creation of new workplaces must take place within one year from the completion of the new investment.

 

An entrepreneur who seeks assistance on the basis of the resolution (exemption from property tax under de minimis aid) is obliged to report the intention to apply for the assistance in writing, prior to the commencement of the investment but no later than on 31st December 2020.

 

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De minimis aid determined by the resolution may be granted in cases when the amount of the planned aid for a single company, including the amount of de minimis aid received by the company from one Member State in various forms and from different sources, over the period of the current fiscal year and the two preceding fiscal years does not exceed an amount equivalent to EUR 200.000 gross and EUR 100.000 gross respectively for a single company running a road transport business activity.

 

Exemption from property tax, resulting from the adoption of this resolution, is entitled for a period of no longer than 3 years from the date of the occurrence of tax liabilities for newly constructed buildings and structures or their parts, in accordance with the provisions of tax and local charges acts.

 

An entrepreneur loses the right to the exemption for the creation of new workplaces associated with a new investment when the new investment or an increase in employment will not be maintained for a period of 5 years (4 years in the case of micro, small and medium-sized enterprises) from the date of completion of the investment. The right for tax exemption is lost beginning from the date of its acquisition.

 

Exemption from property tax does not apply to:

 

  1. buildings or their parts relating to commercial activities and structures associated to these buildings,
  2. buildings or their parts associated with the operation of petrol stations,
  3. buildings or their parts associated with the operation of finance institutions and structures associated with these buildings,
  4. buildings or their parts associated with logistics, shipment and warehousing activities and structures associated with these buildings.

Governmental grants

Governmental grants are provided on the basis of Programme for supporting investments of major importance to the Polish economy for years 2011-2020 (further as the Programme), adopted by the Council of Ministers on July 5, 2011.

 

Form of support

 

Support is provided in the form of a grant on the basis of a agreement concluded between the Minister of Economy and the investor. The agreement lays down conditions for the payment of the grant, which is paid proportionately to the degree of fulfilling investor’s commitments.

 

Beneficiaries

 

Support can be applied for by companies planning investments in the following priority sectors:

 

  1. automotive sector,
  2. electronic and household appliances sector,
  3. aviation sector,
  4. biotechnology sector,
  5. food processing sector,
  6. modern services sector,
  7. research and development (R&D).

Support can also be applied for by companies planning manufacturing investments in other sectors if a project’s minimum eligible costs are 750 m PLN and minimum 200 new jobs or 500 m PLN and 500 new jobs (significant investments).

 

Attachments:

Application for governmental grant for productions sectors
Application for governmental grant for services sectors

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The Programme provides support for investments under the two following categories:

 

1. Support for creation of new job places (employment grant)

 

zatrudnienie EN

 

The amount of employment grant depends, among others, on:

1) in case of manufacturing projects:

  • the number of new jobs created,
  • the percentage of employees with higher education,
  • location,
  • investment expenditures,
  • sector,
  • attractiveness of the products on the international markets;

2) in case of services projects:

  • the number of new jobs created,
  • the percentage of employees with higher education,
  • location,
  • complexity of processes provided by the company.

 

2. Support for new investment (investment grant)

 

zatrudnienie

 

The amount of investment grant depends, among others, on:

 

  • the number of new jobs created,
  • investment outlays per employee,
  • location.

 

Under the Programme, aid is provided exclusively for investment projects whose completion in Poland is conditional on receiving a financial grant from the State budget.

 

The operator of the Programme and the authority granting state aid is the Minister of Economy. The Polish Information & Foreign Investment Agency (Polska Agencja Informacji i Inwestycji Zagranicznych S.A. – PAIiIZ) is responsible for preparing and providing the Interministerial Committee for Investments of Major Importance to the Polish Economy (hereinafter referred to as the Committee) with the dossier of investment projects and for preparing all documents required to carry out the entire procedure of providing financial support.

 

Each project is subject to an individual assessment by the Committee on the basis of detailed criteria laid down in the Programme.

 

Procedure for the award of support:

 

  1. The investor submits to PAIiIZ information on the planned project, using a standard form signed by persons authorized to represent the investor.
  2. Information is evaluated by PAIiIZ. PAIiIZ provides the Chairman of the Committee with information about the project and a draft offer of financial support, with a justification.
  3. The Committee takes up decision on recommended support for the project and submits recommendation to the Minister of Economy for the final decision on granting the support.
  4. PAIiIZ informs the investor of the Committee’s recommendation. The Investor takes a decision on accepting or rejecting the offer.
  5. After accepting the offer, the investor applies to the Minister of Economy for a letter of intent confirming that the investment may commence.
  6. The Minister of Economy sends to the investor a letter of intent confirming that the investment may commence.
  7. Minister of Economy concludes with the investor an agreement on the award of a support.

 

The support granting procedure can be extended in case of companies applying for two or more instruments of regional aid (government grants and CIT exemption and / or grants co-financed from EU funds).

 

State aid

 

State aid offered under the Programme starting from July 1st 2014 is consistent with the rules on the award of state aid in the EU, that is with the Guidelines on regional State aid for 2014-2020 (Official Journal of the European Communities C 209 of 23rd July 2013, page 1) and Commission Regulation (EC) no. 651/2014 of 17th June 2014 declaring certain categories of aid compatible with the common market in application of Articles 107 and 108 of the Treaty (Official Journal of the European Communities L 187 of 26th June 2014, page 1). The aid that does not fulfill comply with the requirements of the Regulation may be granted after approval by the European Commission according to the procedures specified in the Guidelines on regional aid for 2014-2020.

The Pomeranian Special Economic Zone

At the end of 2009, a part of BPPT with an area of almost 36 ha (now 46 ha) was included in the Pomeranian Special Economic Zone. Enterprises operating in the Special Economic Zone are entitled to exemption from income tax for:

  • investment costs specified in the permission

or

  • the level of employment specified in the permission.

 

The minimum amount of investment costs is EUR 100,000 under the condition that business activity is conducted for a minimum period of 5 years (3 years for the SME sector). The level of public support intensity index in the Kuyavian-Pomeranian Voivodeship for large, medium and small enterprises is respectively: 35%, 45% and 55%.

 

Click here to see a list of plots in the Pomeranian Special Economic Zone (B Sector)

 

www.strefa.gda.pl

 

Procedure for entering the Zone (download)

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