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
Tarnobrzeg Special Economic Zone EURO-PARKWISŁOSAN was established based on the Regulation of Council of Ministers of September 9, 1997 (Dz. U. Nr 135, poz. 907 [Journal of Laws No. 135, Item 907, with subsequent amendments]) pursuant to Art. 4 of the Act of October 20, 1994 on special economic zones (Dz. U. z 2007r. ,Nr 42, poz. 274 z późn.zm. [Journal of Laws of 2007, No. 45, Item 274, with subsequent amandments]), which will remain in effect until December 31, 2020.
The Zone's current area and borders have been established following amendments to the Regulation. Initially the Zone covered investment area of 609 ha, located in Tarnobrzeg, Stalowa Wola, Nowa Dęba and Staszów. As of the end of December 2013 the Zone's area was 1632.31 ha and covered the cities of Jasło, Kraśnik, Pionki, Przemyśl, Radom, Siedlce, Stalowa Wola, Tarnobrzeg i Tomaszów Lubelski oraz gmin: Gorzyce, Horodło, Janów Lubelski, Jasło, Jedlicze, Kobierzyce, Łapy, Łuków, Mińsk Mazowiecki, Nisko, Nowa Dęba, Nowe Miasto nad Pilicą, Orły, Ożarów Mazowiecki, Pilawa, Połaniec, Poniatowa, Przasnysz, Ryki, Rymanów, Siedlce, Staszów, Tomaszów Lubelski, Tuczępy, Węgrów and Wyszków.
The key laws regulating business operations within the Zone are:
Act of October 20, 1994 on special economic zones (Dz. U. z 2007r. ,Nr 42, poz. 274 z późn.zm. [Journal of Laws of 2007, No. 45, Item 274, with subsequent amandments])
Act of May 30, 2008 on the changes to the Act on special economic zones (Journal of Laws No. 116, Item 746)
Act of October 3, 2003 on the changes to the Act on special economic zones (Journal of Laws No. 188, Item 1840, with subsequent amendments)
Act of April 30, 2004 on procedures relating to administration of public aid (Journal of Laws of 2007, No. 59, Item 404, with subsequent amendments)
Regulation of the Minister of Economy of July 2, 2009 on delegating to Agencja Rozwoju Przemysłu S. A. [Agency for Industrial Development] the granting of permits to conduct business operations within Tarnobrzeg Special Economic Zone EURO-PARKWISŁOSAN and to carry out audits of compliance to the terms of the permit (Journal of Laws, No. 113, Item 941)
Regulation of the Council of Ministers of December 10, 2008 on the administration of public aid to businesses operating within special economic zones (Journal of Laws, No. 232, Item 1548, with subsequent amendments)
Regulation of the Council of Ministers of December 15, 2008 on Tarnobrzeg Special Economic Zone ( Journal of Laws, No. 232, Item 1560, with subsequent amendments)
Regulation of the Council of Ministers of December 10, 2008 on the criteria whose fulfillment qualifies certain land to be included in special economic zones (Journal of Laws of 2008, No. 224, Item 1477, with subsequent amendments)
Regulation of the Minister of Economy of August 31, 2009 on the development plan of Tarnobrzeg Special Economic Zone EURO-PARKWISŁOSAN (Journal of Laws No. 159, Item 1252)
Regulation of the Minister of Economy and Labor of November 15, 2004 on tender and negotiations procedures and on assessment criteria of business projects to be carried out within Tarnobrzeg Special Economic Zone EURO-PARKWISŁOSAN (Journal of Laws No. 254, Item 2549)
Regulation of European Council No. 800/2008 of August 6, 2008 declaring certain types of public aid compliant with the definition of common market under Articles 87 and 88 of the Treaty (general ruling on block exclusions – UE Journal of Laws, L 214 of August 6, 2008).
The following types of business organizations can operate within the Zone:
In order to incorporate a company, the following formal steps must be taken:
Depending on the type of business activity, the business owner is obliged to notify the following agencies: Państwowa Inspekcja Sanitarno-Epidemiologiczna ( State Sanitary Inspectorate), Państwowa Inspekcja Pracy (State Labor Inspectorate), Państwowa Inspekcja Handlowa (State Trade Inspectorate), Komenda Straży Środowiska (Environmental Protection Enforcement), Inspektor Nadzoru Budowlanego (Building Inspectorate), Zakład Gazowniczy (Gas Company), Zakład Energetyczny (Electric Company).
Businesses operating within the Zone are eligible for public aid in the form of tax relief.
General Guidelines for Administration of Public Aid in Tarnobrzeg Special Economic Zone EURO-PARKWISŁOSAN
1. The basis for obtaining state aid is the permit to conduct business operations in the Zone. The permits are granted to businesses whose operations contribute to the development plans of the Zone and when the business project has not been started prior to the date of receiving the permit to operate. The permits remain in effect until the statutory end date of the Zone's operation. The selection of businesses to receive the public aid is based on a tender or negotiations initiated by a public invitation. The permit to operate in the Zone allows the business to obtain income tax exemptions within the limits specified in the permit.
2. The permit is an administrative decision and specifies the following:
a) nature of business activity (per PKWiU – Polish Classification of Goods and Services)
b) level of investment outlays and schedule of investment expenditures
c) planned levels of employment in the Zone related to the proposed investment project, time line of achieving those levels and the period when employment levels are expected to be maintained
d) projected date of the investment's completion
e) maximum levels of qualified investment costs and qualified labor costs over two years
f) requirements listed in Article 5, Items 3 and 4 of the Act on special economic zones, in cases where the investment project is carried out on private property included in the Zone
3. The permits can be issued for production and services operations, excluding the following:
manufacturing of explosives, tobacco products, processing of fuels, manufacturing, bottling or processing of alcohol or spirit for purposes other than application in the production of bio-components
operation of gaming centers as described in the Act of November 19, 2009 on gambling (Journal of Laws No. 201, Item 1540)
providing services of installation, repairs and maintenance of machinery and equipment
providing services of waste disposal and treatment as described in Section E, Part 37 of PKWiU (Journal of Laws No. 207, Item 1293 and No. 220, Item 1435 and 2009, No. 33, Item 253 and No. 222, Item 1753)
providing services of collection, processing and neutralization of industrial waste and recyclable materials, listed in Section E, Part 38 of PKWiU, with the exception of:
non-hazardous and non-recyclable waste, described in Part 38.11.5
hazardous waste described in Parts 22.214.171.124, 126.96.36.199, 188.8.131.52 and in Sub-Part 38.12.27
organic solvents waste listed in Part 38.21.3
providing services of recycling materials listed in Part 38.3
providing services of land recultivation and other services related to waste management listed in Section E Part 39 PKWiU
building structures and construction work listed in Section F PKWiU
wholesale and retail, repairs of motor vehicles, including motorcycles, providing hospitality and catering services listed in Sections G and I of PKWiU
providing road recovery services listed in Section H, Sub-Part 52.21.25 PKWiU
licensing services in the area of ICT listed in Section J of PKWiU, in particular related to:
acquisition of rights to books, brochures, leaflets and maps listed in Part 58.11.6
acquisition of rights to use mailing and telephone lists listed in Part 58.12.3
acquisition of rights to magazines and other periodicals listed in Part 58.14.4
acquisition of rights to other printed matter listed in Part 58.19.3
acquisition of rights to computer games listed in Part 58.21.4
acquisition of rights to use computer software listed in Part 58.29.5
providing ICT services listed in Section J of PKWiU related to:
production of films, video recordings, television programs, audio and music recordings listed in Part 59, except providing services related to publication of audio and music materials listed in Part 59.20.3
broadcasting of public and subscription programs listed in Part 60
other information services listed in Part 63.9
providing financial and insurance services and real estate services listed in Sections K and L of PKWiU
professional, research and technical services listed in Section M of PKWiU, except:
financial audit services listed in Part 69.20.1
accounting and bookkeeping services listed in Part 69.20.2
technical research and analysis services listed in Part 71.2
research and development services listed in Part 72
administrative an support services listed in Section N PKWiU except call center services listed in Part 82.2
public administration and national defense services; social security and education services, medical and social care services, cultural, entertainment, sports and recreation services listed in Sections O – R of PKWiU
other services listed in Section S of PKWiU, except computer and communication equipment repair and maintenance services listed in Part 95.1
household services and services provided by exteritorial teams and organizations listed in Sections T and U of PKWiU
business operations requiring concessions under the Energy Act of April 10, 1997, Article 32, Item 1 (Journal of Laws of 2006 No. 89, Item 625, with subsequent amendments)
activities listed in Article 1, Items 2 – 6 of European Commission Regulation No. 800/2008 of August 6, 2008
4. The public aid provided to the business in the form of tax exemptions constitutes regional aid extended on the basis of:
a) investment costs, or
b) creation of new jobs
The amount of aid based on the cost of the investment is calculated as a ratio of maximum aid intensity for a given region and qualified investment costs incurred by the business. The amount of public aid based on creation of new jobs is calculated as a ratio of maximum aid intensity for a given region and the cost of labor over a two-year period for the newly hired employees.
5. The condition for receiving public aid based on the cost of the investment project is the application of the business' own funds, which have not been obtained through public aid, to cover at least 25 percent of the total qualified cost of investment.
6. The term new investment shall be understood as investment in fixed assets and intangible assets to establish a new entity or to expand the existing business concern, to diversify production by introduction of new products or to introduce fundamental changes to the existing production process in the existing business concern. The definition of a new investment also includes the acquisition of a business concern that was undergoing liquidation or would have been liquidated if it had not been purchased.
Caution: public aid is not available for replacement investment projects.
7. Creation of new jobs shall be understood as a net growth of employment due to implementation of a new investment project measured against mean level of employment for the 12 months preceding the date on which the permit to operate was issued. The two-year cost of labor of newly hired employees includes gross payroll expenditure plus mandatory contributions, including social security insurance, which are the responsibility of the business owner from the day of hiring the new employees.
The term newly hired employees shall be understood as the employees hired after the permit to operate has been issued, but not later than 3 years after the investment project has been completed. Each new workplace must be maintained for the period of at least 5 years (in the case of large companies), or 3 years (in the case of medium and small businesses), beginning from the date when they were created. The number of employees is understood as full-time employees employed over a one year period and the number of part-time and seasonal employees adjusted to the full-time positions.
8. The public aid for new investment can be obtained jointly with the public aid for creation of new jobs, provided the total public aid level does not exceed maximum allowable public aid levels, which is calculated as a ratio between maximum aid intensity and the cost of the investment or the two-year labor costs for newly hired employees, whichever is higher.
9. The public aid granted for the cost of the new investment or for the two-year cost of labor can be combined with other forms of public aid, regardless of their sources, provided the total public aid offered does not exceed maximum allowable level of aid.
10. The maximum intensity level of public aid in the Zone is 50 percent of the qualified costs, except in the following areas:
a) dolnośląskie voivodship, where intensity is set at 40 percent
b) mazowieckie voivodship, excluding the City of Warsaw, where intensity up to December 31, 2010 was set at 40 percent and from January 1, 2011 to December 31, 2013 at 30 percent
c) the City of Warsaw, where intensity is set at 30 percent
Small and medium companies (as described in the circular to European Commission Regulation No. 800/2008 of August 6, 2008), except the companies operating in the transportation sector, may apply for increased levels of aid intensity as follows:
d) by 20 percent for small businesses
e) by 10 percent for medium businesses
11. In the case of regional public aid extended for implementation of large investment projects, the calculation is based on the following 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 €.
A large investment project is a new investment implemented during a three year period by a single company or a group of companies in which the fixed assets are economically indivisible and whose qualified costs exceed 50 mln Euros based on the exchange rates published by the National Bank of Poland on the date the permit to operate was issued.
12. In the cases where the total value of regional public aid provided from all sources exceeds 75 percent of the maximum allowable level of aid based on the qualified costs of the investment project equal to 100 mln euros, calculated on the basis of standard aid level thresholds for large companies and using the approved map of regional aid levels on the date the aid was approved, the European Commission must be notified.
13. The business owner is exempt from income tax on the basis of capital outlays in implementation of a new investment project starting in the month in which the costs were incurred from the date of the issue of permit to operate until the amount of the allowable public eight has been exhausted, on conditions that:
a) the fixed assets for the purchase of which the costs have been incurred are maintained for a period of 5 years in large companies and 3 years in small and medium businesses, counting from the date the assets have been registered, although replacements of equipment and installations caused by quick technological progress are allowed.
b) keeping the investment in the region from which the public aid has been received for the period of at least 5 years from the moment the investment has been completed in large companies, or 3 years in medium and small businesses
14. The business owner will be exempt from income tax payments based on the creation of new jobs from the month in which the labor costs have been first incurred until the amount of allowable regional public aid has been exhausted, on condition that each new job is maintained in large companies for a period of at least 5 years or 3 years in small and medium companies.
15. In the case of companies which has been included in the boundaries of the Zone based on the implementation of a new investment project, income tax exemption acquired on the bases of the investment cost and the creation of new jobs will be in effect from the month following the month in which the investment costs have been incurred and in which the declared level of employment has been achieved. The exemptions will be in effect from the day the permit to operate has been issued until the maximum amount of allowable regional public aid has been exhausted.
16. Income tax exemptions acquired on the bases of the costs of a new investment and creation of new jobs are available only for businesses operating within the Zone. In the cases where a business operates also outside of the Zone, the business activities conducted within the Zone must be organizationally separated from other business (particularly in accounting and HR areas). The amount of available aid will be calculated based on the operations of the entity located within the Zone.
17. The qualified costs eligible for public aid are all costs associated with the implementation of a new investment project, minus VAT and excise tax (as long as there are legal basis for writing them off), which were incurred during operations within the Zone while exercising the permit to operate. The costs include:
a) purchase price of or the cost of perpetual lease of land
b) purchase price of fixed assets, or the cost of manufacturing them by the business as long as they are legally qualified as part of the business equity
c) the cost of modernization or expansion of the existing fixed assets
d) purchase price of intangible assets associated with transfer of technology by purchasing patent rights, licenses, now-how or non-patented technological expertise
e) costs associated with rent or lease of buildings, land and structures, on condition that the period of rent or lease is at least 5 years for large companies or 3 years for medium and small businesses, counting from the projected completion date of the investment project
f) purchase price of assets other than land, buildings and structures and subject to rent or lease agreements, on condition that rent or lease is in the form of a financial lease and includes the clause obligating the business to purchase the assets upon the expiration of lease
In the case of large companies the fixed assets mentioned in b) must be brand new and the cost of acquiring intangible assets cannot exceed 50 percent of total qualified costs
Intangible assets must fulfill all of the following conditions:
a) they must be used only in the company receiving regional public aid and will be registered as company assets for the period of at least 5 years in large companies, or 3 years in small and medium companies
b) they must be purchased from a third party on conditions adhering to normal investment practices
c) they must be depreciated in accordance with appropriate tax laws
The purchase price and the cost of manufacture of fixed assets and intangible assets are set based on the Accounting Act of September 29, 1994 (Journal of Laws of 2002, No. 76, Item 694, with subsequent amendments).
5. In the case of businesses operating in the transport sector the costs associated with acquisition of means of transportation do not qualify for public aid. In cases where before the acquisition of a company its equity was subject to public aid, the purchase price of such assets will not be included in qualified costs eligible for public aid.
6. The minimum level of costs eligible for public aid is set at 100 000 euros based on the exchange rates published by the National Bank of Poland on the date the permit to operate was issued.
7. The investment costs and the level of public aid are discounted as of the date on which the permit to operate was issued.
Guidelines on procedures of granting permits to conduct business operations within Tarnobrzeg Special Economic Zone EURO-PARKWISŁOSAN
1. PRELIMINARY ACTIVITIES
Discussion of the proposed investment project to be implemented within the Zone includes in particular:
1.1. legal and organizational status of the business entity
1.2. nature of business operations
1.3. size of the investment project
1.4. employment level
1.1. sources of financing of the project
Discussion of the investment's location in the Zone will include:
1.2. location of the property to be used in implementation of the project
1.3. projected use of buildings located on the property
1.4. access to media and utilities
2. PROCEDURAL ACTIVITIES
2.1. The investor completes "Investor's Application" and submits it to the local branch of Agency for Industrial Development. This initiates the procedure of granting the permit to operate within the Zone. The document includes:
information about the company implementing the project
information about the company's core activities do date
information about the proposed investment project to be implemented in the Zone
basic information about goods/services and projected sales figures
schedule of planned investment outlays and projected increase in employment
sources of financing
The form is available from ARP S. A., at www.tsse.pl under the tab "investor's rights/incentives.
2.2. The local branch of Agency for Industrial Development obtains the permission from the Board to start public tender/negotiations procedure and. At the same project receives formal acceptance and tender commission is established.
2.3. Invitation to tender/negotiations is published in the daily press indicating the entity organizing the tender/negotiations, the subject of the procedure, terms of assessment of bids, information about bid security, information about the cost and availability of Specification of Significant Terms and Conditions, deadline for placing bids and time and place of opening of bids.
2.4. Investors interested in obtaining the permit to operate in the Zone submit their bids by the deadline published in the invitation to tender.
2.5. Opening of offers by the Tender Commission with investors is attendance and acceptance or rejection of offers based on formal requirements.
2.6. Non-public phase of Tender Commission proceedings, which includes detailed analysis of the offer using opinions of experts employed by the Commission to perform the assessment of offers. The offer is then formally accepted or rejected.
2.7. Signing of the final tender protocol.
2.8. Submission of tender documentation along with the Commission's recommendations to the Board of Agency for Industrial Development.
3. CLOSING ACTIVITIES
3.1. Delivery to the business of the permit to conduct business operation in the Zone in the form of an administrative decision.
3.2. Signing of an agreement between the business owner and the Zone's management about the participation in administrative costs incurred by the management.
3.3. Depending on previously adopted terms, signing of documents related to the
rights to property to be used in the implementation of the investment project.
The minimum time period for the execution of procedural activities, counting from the day the Investor's Application is submitted, is approximately 8 weeks. This is subject to change depending on the complexity of a particular case.
Glossary of key terms
PUBLIC AID – all forms of assistance (excluding programs such as Phare or SAPARD) provided to a business which use public funds and provides benefits to the business organization. Subsidies, loans and credits extended on preferential terms, guarantees, tax relief and exemption and the option to use public goods and services on preferential terms, are considered forms of public aid. The key limitations in the administration of public aid include:
use of public aid (investment, training, consulting services, environmental protection, innovation, export)
idiosyncrasies of a particular sector
ownership of the company
size of the company (micro, small, medium or large)
SUBSIDY – non-repayable financial aid. Usually paid out in one lump payment as reimbursement of costs already incurred by a business.
DE MINIMIS AID – pursuant to the Regulation of the European Commission No. 1998/2006 of December 15, 2006, the total amount of de minimis aid provided to a single business entity cannot exceed 200 000 euros over any three year financial period. In the case of companies operating in the transport sector the total amount of de minimis aid provided to a single business entity cannot exceed 100 000 euros over any three year financial period.
Excluded from the calculations of de minimis aid amount is public aid obtained through aid programs, individual aid and individual aid for restructuring approved by the European Commission in accordance with Article 88 of the Treaty, as well as aid provided within block exclusions and aid de minimis in the farming and fishing sectors. De minimis aid must be provided within the framework of aid programs as individual aid. It is not subject to notification since it does not effect trade between member states and poses not threat to disrupt competition.
SMALL COMPANY – as defined in Article 2 of Appendix I to the European Commission Regulation 800/2008 small business is a business entity employing fewer than 50 employees and whose annual sales do not exceed 10 million euros.
MEDIUM COMPANY - s defined in Article 2 of Appendix I to the European Commission Regulation 800/2008 medium company is a business entity employing fewer than 250 employees and whose annual sales do not exceed 50 million euros, or whose balanse sheet does not exceed 43 million euros.
LARGE COMPANY – is a business entity employing over 250 employees and whose annual sales exceeds 50 million euros and/or whose balance sheet exceeds 43 million euros.
AUTONOMOUS COMPANY – is a business entity which is not a partnership or a linked enterprise as defined in Appendix 1 to Regulation 800/2008.
Note: these guidelines are intended for information purposes ONLY and have been prepared for promotional purposes of Tarnobrzeg Special Economic Zone EURO-PARK WISŁOSAN.