Ministry Wants To Expand Special Economic Zones

Ministry of Finance and Development announced some bold plans with regard to the future of the programme of Special Economic Zones. The existing areas where entrepreneurs may take advantage of a company-friendly business environment and support for setting up and carrying out business operations in the form of such incentives as tax credits and favourable fiscal regulations will cease to exist in 2026. These are the terms in the legal regulations governing the existence of Special Economic Zones.

Although Special Economic Zones will be no more, it does not mean government officials want to bring back up entrepreneurial spirit and willingness to invest to an end. In a press conference that took place during the recent Economic Forum in Krynica Zdrój, Minister Mateusz Morawiecki announced he wants the whole territory of Poland to become one big special economic zone. ‘This is not a mere correction, this is a true pro-development breakthrough” – he said.

Officials want every gmina (commune) in Poland to offer investment incentives (exemption from corporate income tax) regardless of its size or economic situation. The idea is to give economic boost to every place in the country. Currently, Special Economic Zones have a total area of 25 thousand hectares. The government also announced they want the new programme to be attractive to medium, small and micro enterprises.

Another difference in comparison with the old programme are qualification requirements. Currently, what is important is the number of jobs created by the investor. Minister Morawiecki wants more pressure to be put on the “quality” of the investment (e.g. the number of job offers for professionals) and sustainable development. Areas with high unemployment are to be given extra support and criteria for the government backup will be more lenient there.

Through this, the Ministry of Development wants to cause a hike in investment. Within two years of the launch of the programme investment amount in the country is to reach 30 billion PLN and over 100 thousand jobs created. The scheme is to start in 2018.