Tax settlements in Special Economic Zones and the Polish Investment Zone
The Special Economic Zones (SEZs) and, since 2018, the so-called Polish Investment Zone (PSI) enable entrepreneurs to take advantage of investment incentives, primarily in the form of an income tax exemption. To take advantage of this exemption safely, entrepreneurs need to provide a reliable calculation of the portion of their income eligible for the exemption, divide their operations into exempt and taxed activities, calculate the public aid limit to which they are entitled, and correctly apply transfer price regulations when calculating the exempted income. These are just some of the challenges faced by entrepreneurs operating on the basis of a zone permit/a public aid decision, which, however, with appropriate protections in place, will not outweigh the benefits that business operations in SEZ/the PSI enjoy.
Partner
Tax advisor
Partner
Tax advisor
Scope of advice
The OW team has extensive experience in the legal and tax aspects of business operations in Special Economic Zones/ the Polish Investment Zone. We offer comprehensive advice at all stages of your investment project (from obtaining a permit/a public aid decision to correct accounting for public aid obtained on their basis).
In the area of taxes, we support companies in the safe and effective use of public aid in the form of income tax exemptions, which includes, among others, the following:
Tax advice on the accounting of business operations in the Zone (in particular with regard to the correct calculation of the exempted income, allocation of income and costs to the exempted activity)
Advising on the correct calculation of public aid used and available within a SEZ / the PSI (including checking the correct allocation of investment expenditure, verification of the process of discounting public aid or checking the application of the rules for the combination of public aid with other forms of support)
Checking the correct application of transfer prices for settlements between entities operating in the SEZ/PSI and outside, as well as the determination of the method of inter-company settlements
Reviews of zonal / PSI settlements, including verification of the above aspects
Comprehensive training on legal and tax aspects of operation based on the public aid / zone permit
Drafting of applications for official interpretations of taxation regulations within SEZ / the PSI
Representation in tax and court-administrative proceedings in the area of tax accounting within SEZ / the PSI
Due diligence in the field of taxation prior to M&A transactions involving SEZ companies
Completed projects
Audits and reviews
For more than 10 years, we have carried out a dozen or so audits/reviews of tax accounting in SEZ companies (mostly large companies belonging to multi...
Representation and defence of customers
Effective representation and defence of Clients in numerous tax audits and proceedings concerning taxation in Special Economic Zones
Specialist projects
Dozens of implemented expert projects, including the verification of eligible expenditure and determination of the limit of eligibility for public aid...
Distinction in the Tax category
In 2023, we were once again recognised in The Legal 500 ranking in the Tax category (Tier 2).
The Recommended Lawyer title was given to: Tomasz Gałka, Wojciech Fryze, Konrad Misiewicz, Karol Niemiec and Joanna Karczewska.
