Even 500,000 jobs can be additionally created in Poland owing to the act on supporting new investments. Benefits will be provided especially to entrepreneurs operating on a smaller scale

Tax reliefs valid for up to 15 years, and the investment outlays requirement reduced by 98 percent – these are the main changes in act on supporting new investments. Entities operating all over the country, not only in the special economic zone as it was done before, will be eligible for support. Experts stress that these are positive changes as they will make the country more attractive for investors. Benefits will be especially provided to micro- small and medium-sized businesses. The introduced changes are expected to result in as many as 500,000 additional jobs.

“This act has been much welcomed by entrepreneurs who look forward to being provided with new support mechanisms. It duplicates the mechanisms envisaged in the Act on Special Economic Zones, offering regional investment assistance which includes tax reliefs and exemptions depending on the level of invested funds and the investment area. However, it also provides for several major changes. Namely, the support will be offered countrywide, rather than being limited to SEZs, and its level will depend on the investment area,” stressed Marcin Milczarek, legal counsel, partner in the ECOVIS Milczarek i Wspólnicy Law Office, in an interview with the Newseria Biznes news agency.

The act on supporting new investments envisages tax preferences depending on the location and character of the investment area and the quality of new jobs. The support offered to entrepreneurs will be conditioned, e.g. on the level of unemployment in a given district and business size. The higher the unemployment level in a given area, the lower requirements will be imposed regarding the minimum investment value. A significant requirement reduction will be offered to the smallest businesses (between 80 and 98 percent less, compared to large businesses). Tax reliefs will be offered for up to 10-15 years.

“These are very positive changes as they will make Poland more attractive for investors. Our neighbours, the Czech Republic and Slovakia, have already envisaged such mechanisms, and they are now about to be brought to Poland. It is of note that the support-related decisions remain valid for long periods, during which entrepreneurs can enjoy the granted reliefs, exercise them a number of times, and apply for reliefs in various areas and locations,” Marcin Milczarek explained.

For several years Poland has been one of the key investment venues. A report by the fDi Markets centre, the “Financial Times” group, has revealed that in 2017 investors declared the launching of projects with a total value of USD 14.8 bn in Poland (a rise of 49 percent). However, based on the OECD data, slightly less than USD 4.8 bn was actually brought to Poland, this figure being the lowest since 2013, putting Poland on the 13th position in the European Union. Given the above, any measures that may ultimately lead to increased attractiveness for investors are so crucial.