Advantages for entrepreneurs

The basic advantage of investing in the area managed by Warmińsko-Mazurska Specjalna Strefa Ekonomiczna is public aid in the form of income tax exemption. This is the highest public aid granted to entrepreneurs in Poland – the amount of tax exemption can be up to 70% of the eligible expenditure.

The maximum intensity (level) of the regional investment aid in the area managed by Warmińsko-Mazurska Specjalna Strefa Ekonomiczna S.A. amounts to:

  • 50% of eligible expenditures – in the area managed by W-M SSE S.A. situated in Warmia and Mazury;
  • 35% of eligible expenditures – in the area managed by W-M SSE S.A. situated in Masovia.

For medium enterprises, regulations increase the maximum amount of aid by 10% and for small and micro enterprises – by 20%.

 

 

Definitions of micro, small, medium and large enterprises are provided at the end of this article.

 

To be eligible for tax exemption (public aid), the entrepreneur must obtain a Support Decision. Conditions for obtaining a Support Decision are described under the “SUPPORT DECISION” tab.

 

The entrepreneur is entitled to receive public support in the form of tax exemption for two types of expenditure:

  • costs of the new investment (the maximum amount of public aid is calculated as a product of the maximum intensity of aid specified for a given area and the investment costs eligible for support);
  • employment of a specified number of employees as a result of a new investment (the maximum amount of public aid is calculated as a product of the maximum intensity of aid specified for a given area and the two-year labour costs of newly-employed workers, including the gross labour costs for those workers, increased by obligatory payments, such as social insurance contributions, incurred by the entrepreneur from the day of hiring the employees).

Entrepreneurs can choose the form of support they would like to use.

 

A new investment is an investment in tangible assets or intangible assets related to establishing a new enterprise, increasing the production capacity of the existing enterprise, diversification of production in this enterprise by introducing products that were not previously manufactured or with a significant change in the production process in the existing enterprise, excluding enterprises subject to insolvency or bankruptcy proceedings in a court of law.

 

Investment costs eligible for support

Eligible costs covered by the support for new investments include investment expenditures, reduced by VAT and excise taxes charged, if the possibility of their deduction results from separate regulations, incurred in the validity period of the Support Decision issued for a specific location, covering:

  1. the price of land purchase or of the right of perpetual usufruct of land;
  2. the price of purchase or the cost of internally generated fixed assets, provided that they are included, pursuant to separate provisions, in the tax payer’s assets;
  3. the costs of development or modernisation of existing fixed assets;
  4. the price of purchasing intangible assets related to technology transfer through the acquisition of patent rights or licences;
  5. costs related to rental or lease of buildings and structures – provided that the period of rent or lease is at least five years, and for small and medium enterprises – at least three years, starting from the planned date of completing the new investment;
  6. the cost of purchase of assets other than land, buildings and structure covered by rent or lease if the rent or lease is in the form of a financial lease and includes an obligation to purchase assets when the period of rent or lease expires.

 

Income tax exemption covers only the income obtained from the activity specified in the Support Decision. Under effective regulations, not every kind of activity is subject to support. A Support Decision is not issued, among others, for trading or breeding activity, construction services, production of alcoholic beverages or general services for the public. A detailed scope of activities for which a Support Decision is not issued is specified in Paragraph 2 of the Regulation on public aid granted to entrepreneurs for new investment projects (Dz.U. of 2018 item 1713).

 

Examples of calculating the maximum support to which entrepreneurs in Warmia and Mazury are entitled.

 

Aid for the costs of a new investment.

Purchase of 1 ha of land

PLN 200,000

Buildings and structures

PLN 2,500,000.

Equipment

PLN 3,300,000

Total cost of investment

PLN 6,000,000

 

Enterprise size

Percentage of exemption

Maximum amount of aid to be used

Small

70%

PLN 4,200,000

Medium

60%

PLN 3,600,000

Large

50%

PLN 3,000,000

Employment of a specified number of employees in relation to a new investment.

Number of employees

100

Average monthly labour cost per person

PLN 4,000

Total labour cost in a two-year period (100 x 4,000 x 24)

PLN 9,600,000

 

Enterprise size

Percentage of exemption

Maximum amount of aid to be used

Small

70%

PLN 6,720,000

Medium

60%

PLN 5,760,000

Large

50%

PLN 4,800,000

 

An example of using the aid

Assuming that:

  1. The maximum amount of aid for an entrepreneur is PLN 4,800,000.
  2. The entrepreneur has reached the income level at which the amount of income tax to be paid is PLN 300,000.
  3. The entrepreneur conducts business activity using a Support Decision.

If the entrepreneur does not pay income tax, the maximum amount of aid to be used is reduced by unpaid tax. As a result of this operation, the entrepreneur is left with the aid to be used in the amount of PLN 4,500,000.

The entrepreneur can proceed this way until he uses maximum amount of aid, however, not longer than by the end of the period for which the decision was issued.

 

Definitions of micro, small, medium and large enterprises. 

Microenterprise is an enterprise which employs less than 10 employees and has an annual turnover and/or an annual balance sheet total not exceeding 2 million euro.

Small enterprise is an enterprise which employs less than 50 employees and has an annual turnover and/or an annual balance sheet total not exceeding 10 million euro.

Medium enterprise is an enterprise which employs less than 250 employees and has an annual turnover not exceeding 50 million euro or an annual balance sheet total not exceeding 43 million euro.

Other enterprises are large enterprises.

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warmińsko-mazurska
specjalna strefa ekonomiczna sa

ul. Barczewskiego 1, 10 - 061 Olsztyn
tel.: +48 89 535 02 41
e-mail: wmsse@wmsse.eu

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