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Polish legislation provides for investment incentives related to business activities carried out in 14 zones defined as Special Economic Zones. To benefit from these incentives a company shall obtain a permit from the Ministry of Economy to run business activities within a Special Economic Zone and meet other legal requirements.
Most of the Special Economic Zones offer income tax exemption of the maximum value equalling to 50% of the investment expenditure. In other words, the annual CIT due is reduced by 50% of investment expenditure. If the amount available for deduction exceeds the annual CIT due, the excess can be utilised in the following years. Consequently, in the case of significant investment expenditure, a company can enjoy total exemption from income tax for several years. Even more favourable rules apply to entities classified as small entities or medium-sized. In the case of small entities, the maximum exemption is 70% of the investment expenditure. The medium-sized entities can enjoy the maximum CIT exemption of the value up to 60% of the investment expenditure.
A number of Special Economic Zones offer CIT exemptions at less generous level, which is, however, still very attractive. Instead of the maximum levels of 50% (for big entities), 70% (for small ones) and 60% (for medium-sized ones), the relevant figures in these Zones are 40%, 60% and 50% respectively.
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