Invest in Kraśnik
FŁT Kraśnik S.A. was established in 1948 and is the largest manufacturer of roller and ball bearings in Poland
Kraśnik has a thriving food processing industry thanks to the availability of local farm products
A great place to live, a great place to invest
Investment Zone Kraśnik
Investment incentives in Poland
Tax relief and other incentives offered to the investors must be in agreement with Polish laws regulating the public aid extended to businesses. It is possible to combine several different forms of state aid, but the sum total of tax relief and financial subsidies extended to a business cannot be greater than the maximum allowable regional aid figures.
The maximum allowable regional aid is expressed as a percentage of qualified costs, which include investment outlays (start-up aid) or the labor costs incurred by hiring new employees over a period of two years (subsidies for creation of new jobs). A business owner may receive both the start-up aid and the subsidies for the creation of new jobs, provided the sum total of the aid package does not exceed the maximum allowable state aid. The maximum allowable state aid is defined as a relationship between the most effective level of aid and the highest value of investment costs or labor costs associated with hiring new employees.
The maximum allowable aid for each region is:
for micro and small businesses the basic aid intensity is raised by 20 percent gross (excluding transportation businesses).
for medium-size companies the basic aid intensity is raised by 10 percent gross (excluding transportation businesses).
for large investment projects (i.e. new investments with qualified costs exceed 50 mln €), the maximum allowable aid is calculated using the formula:
I= R x (50 mln € + 0,5 x B + 0,34 x C)
where symbols denote the following:
I – maximum allowable aid for a large investment project,
R – basic intensity of state aid depending on the region where the investment will be launched,
B - qualified costs eligible for subsidies (exceeding 50 mln €, but not greater than 100 mln €),
C - qualified costs eligible for subsidies exceeding 100 mln €.
The regional investment subsidy has to be reported to the European Commission if it exceeds 75 percent of the maximum allowable state aid (in the case of large investment projects), which can be obtained by a business investing over 100 mln € as described above. In such cases the aid will be extended to a business after approval fro the European Commission has been obtained.
Maximum allowable state aid for each region:
Special Economic Zones – benefits for the investors
A Special Economic Zone is an administrative area created for the conduct of business operations under preferential tax conditions.
Business owners who make a decision to invest in Tarnobrzeska Special Economic Zone EURO-PARK WISŁOSAN will be exempt from CIT or PIT liabilities, depending on the type of their business.
In the Zone the following privileges are available to investors:
tax exemption (CIT or PIT),
access to competitively priced land, ready for investment,
free assistance in formalities associated with launching an investment project.
Tax exemptions for businesses operating in the Zone are granted based on the size of the investment or the number of new jobs that the project will create. The sum off tax incentives and labor costs subsidies cannot exceed the maximum allowable regional aid level.
In Lublin voivodship maximum allowable state aid level for large companies is set at 50 percent of the cost of the investment (or the two year labor costs of the newly hired employees). The level for medium-size companies is 60 percent and 70 percent for small and micro businesses.
The Zone income tax exemption is calculated at the highest allowable level considering the thresholds mentioned above.
The businesses operating in the Zone are obligated to conduct activities for the period of at least 5 years after the initial investment has been completed. If a company received labor cost subsidies, the originally declared employment levels must remain unchanged for at least 5 years after the completion of the investment project.
The minimum level of investment to qualify for the Zone incentives is set at 100 000 €.
Property tax exemption
Within the framework of the regional investment aid, each gmina can grant property tax exemptions to businesses, foreign and domestic, without the need of obtaining approval from the European Commission.
The exemptions are extended based on the resolutions passed by gmina councils and is depended on the size of the planned investment project, as well as the projected number of new jobs to be created.
The property tax exemptions are regulated by the Ordinance of the Council of Ministers on granting property tax exemptions by gminas under regional investment aid programs issued on July 23, 2007.
Support for employment of job seekers
Support for employment of job seekers is provided by the state in the process of recruitment and training of employees for the prospective investors. The candidates are recruited from among the registered job seekers.
The basic forms of aid in this area include:
identifying the personnel with the required skills;
organizing internships and on the job training – financial aid is available to cover the training of graduates up to the age of 27 for a maximum of 12 months and re-training of people over 27 years of age for a period of 6 months. In such cases the salaries of interns and trainees are paid for by the Employment Office. After the training has been completed the selected personnel may be employed on a full-time basis;
vocational training for all prospective employees – partial reimbursement of training costs (course fees, textbooks, stipends, costs of travel). Employment Office may allocate up to 5 000 PLN for the training of one individual. During the training the graduates are eligible for a stipend of around 210 PLN per month, while other trainees may receive financial aid of up to 105 PLN per month;
creation of new jobs – reimbursement of costs associated with workplace equipment for a job seeker. Maximum amount available per person is 12 000 PLN.