GENERAL PROVISIONS

REGARDING THE PROVISION OF STATE AID

in the area of

Tarnobrzeg Special Economic Zone EURO-PARK WISŁOSAN

1. Permission to conduct business activity in the area of the Zone  is required to obtain state aid. Permission is granted if the planned activity has a significant influence on achieving the goal stipulated in the plan of the zone development and the entrepreneur the day before filing the application for  aid grant (that is the tender offer organized by the Manager of the Zone) does not start works on the project and expire after the lapse of the period which the zone was established for. Assessing entrepreneur, who shall obtain permission is conducted by the way tenders or prognosis. Obtaining the permission allows the entrepreneur to use income tax allowances, with regard to permission.

2. Permission has the form of administrative decision and stipulates i.a.:

  • the scope of activity (according to Polish Commission of Goods and Services),
  • the amount of expenses connected with the realizing of new investment and the dates which they are due to,
  • employment amount in the area of the Zone connected with the realization of new investment, the dates of obtaining the determined employment level and their maintenance periods,
  • the planned completion date of the investment,
  • maximum eligible costs of the  investment as well as two-year eligible costs of work,
  • requirements, mentioned in Art. 5 Sec 3 and 4 of the Resolution on SSE, in the case when the investment is realized in private land included in the zone.

3. Permission can be granted for conducting business activity in the field of manufacturing and service activity, with the exception of activity in the field of:

  • manufacturing explosives, tobacco goods, processing engine fuels as well as producing, bottling and processing of alcoholic beverages and spirit for the purposes other than biocomponents production;
  • operating game facilities, mentioned in the Act of July 29, 1992 on games and mutual wagering (Journal of Laws of 2004, No.4, item 27 as amended)
  • services of installing, repair, maintenance and renovation of machines and devices used for conducting business activity in the area of the zone and personal use items;
  • civil works stipulated in Section F of Polish Classification of Goods and Services;
  • services of wholesale and retail, repair of mechanical vehicles and motorcycles as well as good for personal and household usage, hotel and catering services, stipulated in Sections G and H of Polish Classification of Goods and Services;
  • services of financial brokerage and services connected with real estate, rental, education and conducting business activity, stipulated in Sections J and  K of Polish Classification of Goods and Services, with the exception of:
    • computer services stipulated in Section 72,
    • research and development services stipulated in Section 73,
    • accounting and book auditing stipulated in the category 74.12.1,
    • book keeping services, with the exclusion of income statement, stipulated in category 74.12.2,
    • services in the field of technical research and analysis stipulated in group 74.3,
    • services of telephone centres stipulated in class 74.86;
    • services in the field of state administration, national defence, mandatory social insurance and  health insurance, education, health care and social services, other utilities, state and individual, household services, services provided by organizations and extraterritorial groups, stipulated in Section L-Q of Polish Classification of Goods and Services
    • business activity which requires a concession pursuant to Art. 32 Sec 1 of the Act of April 10, 1997 – Energy Act (Journal of Laws, No. 89, item 625, as amended)
    • stipulated in Art. 1 Sec 2-3 of the Commission Regulation (EC) No. 800/2008 of August 6, 2008

4. State aid granted to the entrepreneur in the form of tax exemption shall constitute regional aid on:

  • the costs of new investment or
  • creating new workplaces.

The amount of  aid on the costs of new investment constitute the maximum intensity of  aid for the given area multiplied by the costs of investment qualified for the  aid. The amount of  aid on  new workplaces constitute the maximum intensity of  aid for the given area multiplied by the work costs of new employed workers for next two years.

5. Own assets of the entrepreneur are required to grant  aid on new investment. Own assets shall be understood as assets, which were not obtained in the framework of the granted  aid, constituting at least 25% of total eligible cost of the investment.

6. New investment shall be understood as investment in fixed assets as well as intangible assets for creating new or extended company, diversification of company’s production by introducing new additional products or for significant change concerning the whole production process of the existing company. As new investment shall also be recognized the purchase by an independent entrepreneur of a company, which is in liquidation proceeding or would be liquidated if it hadn’t been purchased.

ATTENTION!  Aid for replacement investment is not acceptable.

7. Creating new workplaces means the increase of workplaces on a net basis in a given company connected with the realization of new investment in regard to the average employment in the period of 12 months before the day of the exemption was obtained. Two-year cost of the new employed include the cost of gross pay of those employees plus mandatory contributions, such as social insurance contributions, costs incurred by the entrepreneur from the day of the employment of those workers.

New employed workers shall be understood as the number of workers employed after the day the exemption was obtained in the connection with new investment, however not later than within the period of three years after the completion of the investment and provided that each workplace is maintained for the period of at least 5 years in the case of large entrepreneurs and for the period of at least 3 year in the case of small and medium entrepreneurs from the day of their establishment. The number of workers means full-time employees in the period of one year together with part-time employees and seasonal workers as full-time employment equivalent.

8. The aid for new investment may be granted together with the aid for creating new workplaces, provided that the total amount of the aid does not exceed the maximum aid amount, whereby the acceptable amount of the aid constitutes the maximum intensity of the aid multiplied by the higher amount of costs: of new investment or two-year costs of work of new employed workers.

9. The aid on the costs of new investment or on creating new workplaces may be granted jointly with other aid for new investment or creating new workplaces, regardless to its origin and form, provided thae the total amount of such aid does not exceed the acceptable amount of aid.

10. The maximum intensity of aid in the area of Tarnobrzeg Special Economic Zone EURO-PARK WISŁOSAN shall amount to 50% of the costs eligible for the aid, with the exception of:

  • the area of Dolnośląskie voivodeship, where the intensity amounts to 40%,
  • The area of Mazowieckie voivodeship with the exclusion of the Capital City of Warsaw, where the intensity until 31.12.2010 amounts to 40%, and from 01.01.2011 to 31.12.2013  – 30% 30%,
  • the area of the Capital City of Warsaw, where the intensity amounts to 30%.

The entrepreneurs form the Sector of small and medium business (that is small and medium business within the meaning of attachment I to the Regulation of the Commission (EC) No. 800/2008  of August 6, 2008 recognizing some types of aid as compliant with joint risk stipulated in Art. 87 and 88 of the Treaty (general regulation on community block exemptions), with the exception of entrepreneurs conducting business activity in transporting Sector, can increase the levels of intensity of the aid respectively:

by 20% in the case of small entrepreneurs or

by 10 % in the case of medium entrepreneurs.

11. In the case of regional aid granted to the entrepreneur for the realization of large investment project the maximum amount of the aid is determined according to the formula:

I = R x (50 million Euros + 0.5 x B + 0.34 x C)

where the symbols mean:

 I – maximum amount of the aid for large investment project,

 R – intensity of the aid for the area of the investment,

B – the amount of costs eligible for aid higher than the equivalence of 50 million Euros not exceeding the equivalence of 100 million Euros,

 C – the amount of costs eligible for the aid exceeding the equivalence of 100 million Euros.

Large investment projects shall be understood as new investment, undertaken in the period of three years by one or more entrepreneurs, in the case of which the fixed assets are jointed together and which costs eligible for the aid exceed the equivalence of 50 mln euro and were calculated according to the rate of exchange determined by The National Bank of Poland on the basis of the prices and rates of the day of the permission was granted.

12. In the case, when the total joint regional aid granted from all possible sources exceeds 75% of the maximum amount of the aid, which can be granted for the realization of investment with costs eligible for the aid which constitute the equivalence of 100 million Euros, using the standard levels of the aid for large companies on the approved map of regional aid on the day of granting the aid, the aid project requires the notification of the European Commission.

13. The entrepreneur is entitled to the income tax exemption on the costs of new investment from the month, which the entrepreneur incurred investment costs in, in the period from the day the permission was granted until the acceptable aid was exhausted, provided that:

the elements of assets are maintained, which the investment costs were connected with within the period of 5 years in the case of large entrepreneurs and the period of 3 years in the case of small and medium entrepreneurs, from the day of registering the fixed assets and intangible assets, whereby the exchange of old systems or equipment connected with fast technological development is no excluded,

b. the investment is maintained in the region, where the aid was granted, within the period not shorter than 5 years from the moment when the whole investment is completed, and in the case of small and medium entrepreneurs - within the period not shorter than 3 years.

14. The entrepreneur is entitled to the income tax exemption on creating new workplaces from the month, which the entrepreneur started to incurre costs of work in, until the acceptable regional aid is exhausted, only if each workplace is maintained for the period of at least 5 years in the case of large entrepreneurs or 3 years in the case of small and medium entrepreneurs.

In the case of the entrepreneur, whose company or its organized part was included in the zone in regard to the realization of new investment, the entrepreneur is entitled to the income tax exemption on the costs of new investment and the income tax exemptions from the month following the month, which the investment costs were incurred and the level of employment was achieved, stipulated in the exemption, in the period from the day the exemption was obtained, until the acceptable regional aid was exhausted.

16. The income tax exemption on the costs of new investment or the costs of new workplaces is granted only to business activity conducted in the area of the zone.
In the case of conducting business activity outside of the zone, the activity conducted in the area of the zone must be organizationally divided (including especially in the field of accountancy and staff), and the amount of the exemption is determined on the basis of the data of the entity conducting activity solely in the area of the zone.

17. Costs eligible to the aid are the costs connected with the realization of the investment less goods and services tax and excise tax, incurred in the area of the zone during the validity of exemption, which are:

the price of land purchase or the right of perpetual usufruct of land

b. the purchase price or manufacturing cost of fixed assets provided that they are includedaccording to separate regulations – in taxpayer’s assets;

c. the cost of extension or modernization of existing fixed assets;

d. the purchase price of intangible assets connected with technology transfer by the purchase of patent rights, licences, know-how and not patented technical knowledge,

e. cost connected with the rental or lease of land, buildings and constructions – provided that the rental or lease period lasts for at least 5 years, and in the case of small and medium entrepreneurs - for at least 3 years, counting from the foreseen date of the completion of new investment;

f. asset purchase price other than land, buildings and construction rented or leased, in the case when the rental or lease has the form of financial lease and includes the obligation to purchase the assets on the day of rental of lease completion.

In the case of large entrepreneurs fixed assets, mentioned in point b, shall be new and the investment costs for the purchase if intangible assets shall be included in costs eligible to the aid in the amount not exceeding 50% of the general amount of the eligible costs.

Intangible assets shall jointly fulfil the following requirements:

will be used by the entrepreneur obtaining regional aid solely in the company, which the entrepreneur obtains aid for, and will be included in the company’s assets and will remain in the company during the period of at least 5 years in the case of large entrepreneurs and in the case of small or medium entrepreneur for the period of at least 3 years;

b. will be purchased by others in accordance with general investment practices;

c. will be the subject to amortization according to the regulations on the income tax.

The purchase price and manufacturing costs of fixed assets and intangible assets are determined in accordance with the Resolution of September 29, 1994 on Accountancy (Journal of Laws of 2002, No. 76, item 694 as amended)

18. In the case of the entrepreneur conducting activity in transporting Sector the expenses on the purchase of means of transport are no eligible to the aid. In the case, when before the purchase of the company the aid was already granted, the price of the purchase is not included to the costs eligible to the aid.

19. Minimum amount of investment costs amounts to EUR 100.000 according to the rate determined by the National Bank of Poland of the day the permission was granted.

 20. Investment costs and the amount of  the aid are discounted on the day the permission was granted.