The Polish Investment Zone (PIZ) is a programme through which it is possible to obtain CIT/PIT relief for the implementation of a new, not yet commenced investment within a company. This tax relief constitutes “regional investment aid”.
The PIZ regime makes it possible to obtain income tax exemptions for a period of between 10 and 15 years. The amount of the exemption is up to 70% of the value of the planned investment.
What constitutes new investment?
According to Article 2(1)(1) of the New Investment Promotion Act, a new investment should be understood as:
- opening of a new plant
- increasing the production capacity of an existing plant
- the introduction of products not previously manufactured by the company
- a fundamental change concerning the production process in an existing plant
Who can benefit from the tax relief?
PIZ tax relief is available to investors throughout Poland regardless of the entity’s size. Support is given to companies from the industrial sector and modern business services (e.g. IT, R&D work) after meeting quantitative and qualitative criteria.
PIZ tax relief does not extend to companies in relation to which insolvency proceedings have been commenced or a petition for bankruptcy has been lodged with a court.
What criteria must be met?
An entrepreneur wishing to benefit from PIZ tax relief must submit an application for support, following which it is assessed against quantitative and qualitative criteria.
The quantitative criteria are the minimum required eligible costs for a new investment to be incurred in order to receive tax relief. This depends on the level of unemployment in the district where the investment is to be made. The lowest required costs apply in districts with high levels of unemployment and in selected medium-sized towns that are experiencing a loss of socio-economic function.
The qualitative criteria take into account economic and social sustainability. Additionally,, points are awarded depending on the location of the new investment.
How much time is there to utilise the tax relief?
An investor may benefit from the reduced tax under the relief granted for 10, 12 or 15 years. The maximum exemption period depends on the location chosen.
PIZ tax relief – Ayming’s scope of support
- Verification of the possibility of obtaining a support decision, including calculation of the exemption limit
- Identification of all eligible project costs in order to receive maximum support
- Cost-benefit analysis associated with PIZ tax relief
- Guidance through the process of applying for a support decision. Includes preparation of the necessary documents and contact with the competent authorities during and after the application.
What sets us apart
Due to our many years of experience in obtaining additional funds for the development of companies, we offer an analysis of all available instruments for financing a new investment. Starting from the Polish Investment Zone tax relief, through EU grants, robotisation relief, R&D relief or other pro-innovation reliefs introduced as part of the so-called “Polish Deal”.
We understand how the above mechanisms work and interact with one another, allowing us to select those most aligned with our clients’ needs and expectations. Our international know-how and rich portfolio of projects carried out in Poland in the area of innovation financing ensure that our partners receive proven solutions that adhere rigorously with current legal and tax regulations.
