Global Business Experts - News and events

01/11/2007

New EC regulations:
Revised map of regional aid in Poland

As of 1st January, the Polish map of regional aid has changed. The obligation to notify the European Commission has been abolished, provided that the public aid program is consistent with new EC regulations.

According to the new EC regulation, there is still a notification obligation for regional aid in case of large investment projects (with investment value over EUR 50 million) when they exceed a specific ceiling.

The regional aid map change means a change in the aid ceiling that may be granted in a region. Now maximum regional aid is identical for an entire province (Masovia is the only exception, with permissible regional aid in the province of 40%, but in Warsaw only 30%). From 2011 there will be one 30% rate for all of Mazovia.

Regional Aid Map

The map was changed by the Polish government regulation dated 13 October 2006, which came into force on 1 January 2007. It is in compliance with the EC directives for the years 2007 – 2013. Rules for state aid proceedings are governed by the Act on Proceedings in Public Aid Cases (Journal of Laws 94.123.600).

The most popular public aid in Poland is the income tax relief granted to businesses operating in Special Economic Zones (SEZ).

Regional aid may be used for new investments or creation of new jobs connected with an investment. The public aid value depends on the investment location (see map), investment size, qualified costs, and the sector of the economy. The public aid map determines the ceiling for each region. In case of investment projects not exceeding EUR 50 million, the ceiling may be increased by 20% for small companies and 10% for medium-sized companies. Investors are eager to use regional aid, the best proof of which is the popularity of SEZ’s as investment locations.

Warsaw