A A A Change to contrast
Send to friend Print site
Investment Incentives

REAL PROPERTY TAX EXEMPTIONS

 

On 8 November 2010, Białystok Municipal Office adopted a resolution with regard to the remission of real estate tax which is part of provision of regional aid in investment matters. The resolution describes the subject of remission as well as the boundary conditions which enable the entities to qualify for regional aid in investment matters.

 

Pursuant to the decree issued by Białystok City Council, the exemption from property tax refers to new investments or those investments which have contributed to the creation of new jobs providing that:

  1. the total financial layout for the new investment exceeded the amount equal to 30 000 EUR, or that at least 3 new jobs have been created in relation with the new investment – in case of investments conducted on the property owned by micro-entrepreneurs,
  2. the total financial layout for the new investment exceeded the amount equal to 60 000 EUR, or that at least 10 new jobs have been created in relation with the new investment – in case of investments conducted on the property owned by small entrepreneurs,
  3. the total financial layout for the new investment exceeded the amount equal to 250 000 EUR, or that at least 50 new jobs have been created in relation with the new investment – in case of investments conducted on the property owned by medium entrepreneurs,
  4. the total financial layout for the new investment exceeded the amount equal to 3 000 000 EUR, or that at least 200 new jobs have been created in relation with the new investment – in case of investments conducted on the property owned by entrepreneurs, other than those listed in points 1-3.

 

Entrepreneur intending to be exempted from real property tax is obliged to submit such intention in writing before starting the investment. New investment or new investment-related employment generating must be completed within 2 years from submitting the intention of receiving state aid by the entrepreneur.


Real property tax credit may be granted provided that the tax payer has submitted a relevant application (constituting an annex to resolution on real property tax exemptions as part of regional investment aid http://bipnowy.um.bialystok.pl/290-szczegoly-uchwaly/lang/pl-PL/id/1Y-Z3oJ8vNygfv8CdEvxmA2/default.aspx, which shall be considered by a tax authority based on tax law state aid regulations.

 

REDUCTIONS AND PREFERENCES AVAILABLE IN SPECIAL ECONOMIC ZONES

 

In accordance with the government order of 10 December 2008 on state aid for entrepreneurs acting on the basis of permission to run business activity in special economic zone areas, is the state aid granted to the entrepreneurs by means of tax relief based on Corporate Income Tax Act of 15 February 1992 or Individual Income Tax Act of 26 July 1991. The above is considered regional aid on account of:

  1. new investment's costs
  2. employment generation

 

Income tax allowances in case of new investment's costs


In Podlaskie Voivodship the amount of tax relief granted on account of new investment's costs is 50% of incurred investment expenses for big entrepreneurs, 60% for medium entrepreneurs and 70% for small entrepreneurs.
In case of new investment's costs aid is granted on condition of:

  • keeping fixed assets for the period of 5 years from putting them into the fixed assets records, in case of small and medium entrepreneurs and for the period of 3 years,
  • running business activity for the period of no less than 5 years from the final investment completion date or for the period of 3 years in the case of small and medium entrepreneurs.

 

In case of new investment's costs aid is granted on condition of the entrepreneur's own contribution to the investment understood as financial resources which have not been assigned as part of a support programme and which amount to at least 25% of the total eligible investment costs. Minimal value of investment expenditure is 100 thousand euro on condition of pursuing business activity for the period of minimum 5 years and 3 years for SME.


A new investment is understood as an investment in fixed and intangible assets that involves establishing of a new one or development of an existing enterprise, diversification of the enterprise's manufacture and introduction of additional products or a fundamental change of an overall production process of the existing enterprise. The term of a new investment may also be applied in the case of purchasing an enterprise which is being liquidated or which would be liquidated if it was not purchased, whereas the enterprise is purchased by an autonomous entrepreneur as understood by Annex I to Commission Regulation (EC) No 800/2008 of 6 August 2008 declaring certain categories of aid compatible with the common market in application of Articles 87 and 88 of the Treaty (General block exemption Regulation).


Reconstruction investments are not eligible for state aid.

 

Income tax allowance in case of generating employment


The amount of granted aid is a product of maximum intensity of aid granted to a given area (50% in the case of Podlasie and 70% and 60% for small and medium entrepreneurs respectively) and 2-year new employees labour costs, including gross wage costs plus obligatory national insurance contributions, incurred by the entrepreneur. The entrepreneur is required to keep the new established workplaces for the period of no less than 5 years or 3 years in case of small and medium entrepreneurs.


Creation of new work places is understood as the new investment related net growth in the number of workplaces compared to the average employment in the given enterprise in the period of 12 months from the permission issue date.


Aid for new investments may be granted along the aid the for creation of new work places provided that the total amount of the received support is not higher than the maximum aid amount, whereas the permissible aid amount is determined by a product of maximum aid intensity and the higher amount between new investment's costs or 2-year new employees labour costs.


RELIEFS IN THE REPAYMENT OF TAX LIABILITIES


Rules for Tax incentives are specified in detail in 29 August 1997 Tax Ordinance Act (consolidated text: Journal of Laws 2012, Item 749 with subsequent amendments).
In accordance with the Tax Ordinance Act – tax authority may, upon request of the tax payer:

  1. defer the tax payment date or arrange instalments for tax payment;
  2. defer or arrange instalments for the payment of tax arrears with the penal interest;
  3. remit part or the whole amount of tax arrears, penal interest and deferment fee.

 

The nature of Tax incentives for entrepreneurs granted by a tax authority being the Mayor of Białystok, determines their aid nature, therefore such Tax incentives may be granted only in form of state aid, including de minimis aid.
Tax authority which grants real property tax credit based on the Tax Ordinance Act applies state aid regulations, among others State Aid Procedures Act of 30 April 2004 (consolidated text: Journal of Laws 2007 No. 59, Item 404 with subsequent amendments).


Tax authority may apply a tax incentive as a so-called de minimis aid, described in detail in Community regulations. According to the de minimis rule, aid for minor amounts is not in breach with nor does it create a threat of a breach of competition rules. The authority may grant aid if the aid amount is not higher than 200 thousand euro. Such amount does not affect commercial exchange between the UE countries, it does not distort not threatens with distortion of competition either. De minimis rule is applicable disregarding the size of the investing enterprise.
Tax payer applying for real property tax credit is obliged to submit information and certificates on the received de minimis aid in the given year and two previous years. De minimis aid may not granted to tax payers who find themselves in a difficult financial situation. Criteria for for such situation have been specified in Community guidelines on state aid for rescuing and restructuring firms in difficulty.


PREFERENTIAL CHARGES IN BSTP

 

Białystok Science and Technology Park will support entrepreneurs, e.g. through making available under preferential conditions - with the application of reliefs and exemptions – office, service, technology and laboratory space, as well as conference, training and exhibition space, specialised equipment, and IT services. Moreover, BSTP will offer legal and accounting services, as well as training sessions, seminars and workshops.


Because offering premises to companies at affordable prices (to entities starting or planning to start economic activity, and to entrepreneurs operating on the market for not longer than 3 years), is one of incubation functions of the BSTP, the Technology Incubator of the BSTP will offer discounts on basic rental rates, respectively:

  • in the first year of operations - 80% discount,
  • in the second - 55%,
  • in the third - 30%1.

 

The tenants of Technology Incubator will also be offered 50% discount for conference halls and training rooms rental.


The discounts will be offered as de minimis aid.


1Opinion No. 1/05/11 of the Programme Committee of the Białystok Science and Technology Park from 17 November 2011 on the rules of the definition of fees for the rental of office surface, and different components of the Technology Incubator infrastructure.

rtfUstawy z dnia 20 października 1994 r. o specjalnych strefach ekonomicznych (tekst jednolity Dz.U. z 2007 r. Nr 42, poz.274 z późn. zm.).rtfrtf, 35 KB
rtfUstawy z dnia 15 lutego 1992 r. o podatku dochodowym od osób prawnych (tekst jednolity Dz.U. z 2000 r. Nr 54, poz. 654 z późn. zm.).rtfrtf, 604 KB
rtfUstawy z dnia 26 lipca 1991 r. o podatku dochodowym od osób fizycznych (tekst jednolity Dz.U. z 2000 r. Nr 14, poz. 176 z późn. zm.).rtfrtf, 759 KB
rtfRozporządzenia Rady Ministrów z dnia 15 grudnia 2008 r. w sprawie suwalskiej specjalnej strefy ekonomicznej (Dz.U. z 2008 r. Nr 232, poz. 1559).rtfrtf, 30 KB
rtfRozporządzenia Rady Ministrów z dnia 10 grudnia 2008 r. w sprawie pomocy publicznej (...) (DZ.U. z 2008 r. Nr 232, poz. 1548).rtfrtf, 33 KB
How to open downloaded files

 

 

In accordance with the government order of 10 December 2008 on state aid for entrepreneurs acting based on permission for pursuing business activity in special economic zone areas state aid granted to the entrepreneurs by means of tax relieves based on Corporate Income Tax Act of 15 February 1992 or Individual Income Tax Act of 26 July 1991 is considered regional aid on account of:


 1)  new investment's costs, the amount of which is a product of the maximum aid intensity determined for a given area and investment costs qualifying for state aid,
 2)  employment generation, the amount of which is a product of maximum aid intensity determined for a given area and 2-year new employees labour costs, including gross wage costs plus obligatory national insurance contributions, incurred by the entrepreneur since the new employees employment date.

 

 

Income tax allowances in the case of new investment's costs

 

 

In Podlaskie Voivodship the amount of tax relieves granted on account of new investment's costs is 50% of incurred investment expenses for big entrepreneurs, 60% for medium entrepreneurs and 70% for small entrepreneurs.

In the case of new investment's costs aid is granted on condition of:

 

  • keeping fixed assets for the period of 5 years from putting them into the fixed assets records in the case of big entrepreneurs and for the period of 3 years in the case of small and medium entrepreneurs,
  • pursuing business activity for the period of no less than 5 years from the final investment completion date or for the period of 3 years in the case of small and medium entrepreneurs.
  •  

In the case of new investment's costs aid is granted on condition of the entrepreneur's own contribution to the investment understood as financial resources which have not been assigned as part of a support programme and which amount to at least 25% of the total eligible investment costs.
Minimal value of investment expenditure is 100 thousand euro when fulfilling the condition of pursuing business activity for the period of minimum 5 years and 3 years for SME.

 

New investment is understood as an investment in fixed and intangible assets that involves establishing of a new one or development of an existing enterprise, diversification of the enterprise's manufacture and introduction of additional products or a fundamental change of an overall production process of the existing enterprise. The term of a new investment may also be applied in the case of purchasing and enterprise which is being liquidated or which would be liquidated were it not purchased, whereas the enterprise is purchased by an autonomous entrepreneur as understood by Annex I to Commission Regulation (EC) No 800/2008 of 6 August 2008 declaring certain categories of aid compatible with the common market in application of Articles 87 and 88 of the Treaty (General block exemption Regulation).
Reconstruction investments are not eligible for state aid.

 

 

Income tax allowance in the case of generating employment

  

 

The amount of granted aid is a product of maximum intensity of aid granted to a given area (50% in the case of Podlasie and 70% and 60% for small and medium entrepreneurs respectively) and 2-year new employees labour costs, including gross wage costs plus obligatory national insurance contributions, incurred by the entrepreneur. The entrepreneur is required to keep the new established workplaces for the period of no less than 5 years or 3 years in the case of small and medium entrepreneurs.
Generating employment is understood as the new investment related net growth in the number of workplaces compared to the average employment in the given enterprise in the period of 12 months from the permission issue date.
Aid for new investments may be granted along aid for generating employment provided that the total amount of the received support is not higher than the maximum aid amount, whereas the permissible aid amount is determined by a product of maximum aid intensity and the higher amount of: new investment's costs or 2-year new employees labour costs.
Amounts of regional aid granted by several, national or international, institutions may be totalled.


 

If you have any suggestions, please do not hesitate to contact us
Select category
Description:
User email Confirmation link will be sent via this email More info
captcha
Wpisz kod z obrazka
Send mail