At the end of June 2018 the provisions of the New Investment Support Act entered into force, thanks to which companies will be able to receive public assistance for new investments throughout Poland. At the end of this year companies started to receive the first agreements for support, due to decisions issued by the Minister of Entrepreneurship and Technology. Experts from the Ecovis Milczarek i Wspólnicy law firm address the impact of these agreements for companies.
Support in the form of tax breaks is possible for those who meet two basic criteria: quantitative, regarding the incurrence of qualified costs of a specified amount; and qualitative, related to sustainable economic and social development, e.g. by ensuring an appropriate level of employment or conducting research and development. One of the companies that obtained a positive decision for support is Stalatube Sp. z o.o., which is part of the Finnish Stalatube group.
“Our goal when applying for this support was to create a new company that will process welded and bent stainless steel profiles, as well improve pipe elements made of stainless-steel pipes and improve the construction of welded elements. Fortunately, we were able to meet all the criteria and on November 19 we received a positive decision regarding support, which we are very happy about,” says representative of Stalatube Sp. z o.o.
According to the act support is granted in the form of tax exemptions at an aid intensity that is linked to where the investment is located. Due to the fact that the Stalatube investment is in the Łódź Voivodeship, public aid will amount to 35%.
Effect of support on business
Thanks to the Act on Supporting New Investments it is possible to benefit from support throughout Poland, and not just in specific areas. Investors are encouraged to invest in Poland, which will bring new technical and technological solutions, increase exports and the competitiveness of manufactured products, and, most importantly, create new jobs.
“Support for companies making new investments is granted in the form of income tax exemptions under rules set out in corporate income tax regulations. The support system favours small, medium and micro companies, but large firms can also take advantage of it, although, of course, the requirements are much higher. The procedure for obtaining a decision is easier than before. After finishing the first project, our conclusion is that the new regulations make it much more convenient for businesses,” says Piotr Pruś from the Ecovis Milczarek i Wspólnicy law firm, who was responsible for the Stalatube project.
Many businesses have been eagerly awaiting the new Act coming into force. Thanks to it the economic development of Poland will definitely accelerate and the income of companies and their employees will increase.
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