Real property tax exemption as part of the de minimis aid
The municipality council adopted a resolution (RESOLUTION NO. XLIII/336/2014 OF THE OLEŚNICA CITY COUNCIL of 30 April 2014 on real property tax exemptions as part of the de minimis aid.) which is an aid scheme of tax exemption solutions based on community provisions on de minimis aid.
The aid offered to the companies planned by Oleśnica City for the period up to 30 June 2021, real property tax exemption for newly constructed buildings or their parts, structures and their part together with land, connected with business activity on the condition of employment of people with the unemployed status (registered in the Employment Office). The above exemption shall be applicable for the period of 1 year in the case of employment of at least 5 unemployedpeople and maintaining such employment for at least a year. In the case of employment of 25 unemployed people for the period of at least 2 years and maintaining such employment for 2 years - tax exemption shall be applicable for 2 years as well.
For instance, an entrepreneur erects a new facility - a hall of 300 m2 on the plot of the area of 30 are and employs at least 5 unemployed people may be granted a real property tax release in the amount of approx. PLN 9 300. In the event of employment of at least 25 unemployed people in this case an entrepreneur may be granted a two-year real property tax exemption in the amount of approx. PLN 18 600.
The current tax rates for real properties in Oleśnica City for buildings connected with business activity amount to PLN 22.98 per 1 m2 for land used for business activity amount to PLN 0.93 per 1 m2.
The Act on procedures concerning public aid introduces an obligation to issue certificates stating that the public aid is the de minimis aid.
The basic form of public aid offered in the Wałbrzych Special Economic Zone is income tax exemption for the business activity conducted in the Zone.
The amount of income tax exemption granted under the decision on supporting new investments depends on the size of the entrepreneur and location of the investment. Maximum rate of public aid for large enterprises in the Lower Silesia amounts to 25% of investment expenditure, medium-sized enterprises get up to 35% and small and medium enterprises are eligible for 45%.
Company status factors:
- number of employees;
- total annual turnover or annual balance sheet total.
The employment data, net revenues and the balance sheet total as at the closing of the financial year are taken into consideration.
|Company category||Number of employees (AnnualWork Unit)||Annualturnover (EUR)||Annualbalancesheettotal(EUR)|
|Large||>250||> 50 million or||or > 43 million|
|Medium||<250>||≤ 50 million or||or ≤ 43 million|
|Small||<50>||≤ 10 million or||or ≤ 10 million|
|Micro||<10>||≤ 2 million or||or ≤ 2 million|
Investment expenses - include investment outlay qualified to be covered by the public aid or two-year labour costs for newly employed employees connected with the new investment in the zone.
A decision on aid is granted only for a new investment which is regarded as an investment in fixed assets or intangible assets connected with:
- establishment of a new enterprise,
- increasing production capacity of the existing enterprise,
- diversification of the production by introduction of products which have not been produced before in the company,
- significant change concerning the manufacturing process of the existing enterprise.
Public aid for the costs of the new investment
Admissible public aid for a new investment calculated on the basis of the new investment costs is calculated as a product of maximum aid amount specified for a given area (province) and investment costs qualified to be covered by aid which comprise:
- land purchase costs or perpetual usufruct right costs, acquisition costs or costs of production from fixed assets on the condition that they are recognized, under separate provisions, as assets of the tax payer and recognized as fixed assets and intangible assets,
- cost of development or modernisation of the existing fixed assets,
- purchase price of intangible assets connected with the transfer of technology by acquisition of patent rights, licences, know-how and unpatented technical knowledge,
- costs related to lease of land, buildings and structures - on the condition that the lease period lasts minimum 5 years and in the case of micro enterprises, small and medium enterprises - at least 3 years counting from the anticipated completion of the new investment,
- acquisition price of assets other than land, buildings and structures covered by lease and if the lease is the financial lease and includes an obligation to acquire assets prior to the lapse of the lease period,
which are decreased by the calculated value added tax and the excise tax it is possible to deduct them under separate provisions of law and they are incurred in the validity period of decision on providing aid to a specific location.
Public aid for employment of new employees
Admissible amount of public aid for a new investment granted to an entrepreneur for employment of a specific number employees in connection with a new investment is calculated as a product of maximum amount of aid specified for a given area (province) and two-year labour costs of newly employed employees, including gross salary costs of such employees, increased by statutory contributions, such as social insurance contributions incurred by an entrepreneur from the date of employment.
An entrepreneur is obliged to maintain such workplace from the date of establishment for the period of at least 5 years for a large enterprise and 3 years for micro, small and medium enterprises.
Detailed information is available at the sites of:
- Wałbrzych Special Economic Zone: https://invest-park.com.pl/wysokosc-pomocy-publicznej/
- Dawg Sp. z o.o. partner of the self-government of the Lower Silesia Province for development of business and regional economy: http://dawg.pl
- Main European Funds Information Point in the Region: http://rpo.dolnyslask.pl
Investment incentives - national (government grants)
Polish Investment and Trade Agency
Government grants are awarded under the Investment support scheme which is of significant for the Polish economy in the years 2011-2023 (“Scheme”) adopted by the Council of Ministers on 5 July 2011. Such support is awarded in a form of subsidies under a bilateral agreement concluded between the Minister of Economy and the Investor. The agreement governs specific conditions for subsidy payment with the principle that such subsidy is always paid in proportion to the degree of fulfilled obligations.
Entrepreneurs who are planning investments in the following priority sectors may apply for grants:
- electronic and home appliance,
- agricultural and food,
- modern services,
- research and development.
Moreover, also entrepreneurs planning production investments in other sectors of minimum qualified costs of PLN 750 and creating at least 200 new workplaces or minimum qualified costs of PLN 500 and creating at least 500 new workplaces (significant investments).
Detailed information: https://www.paih.gov.pl/dlaczego_Polska/zachety_inwestycyjne#
Information on support as regards currently applicable provisions of law and public aid is available at https://www.paih.gov.pl/pl and www.paih.gov.pl/prawo/system_podatkowy