Economy Ministry unveils tax and insurance breaks for start-up businesses

Under a plan presented yesterday by Ewa Wedrowska of the Economy Ministry during a conference of the Polish Female Company Owners' Association (PSWF) in Sopot, newly-established companies would be freed from paying capital gains taxes and social insurance premiums for the first year of their activity, or at the very least would have these payments deferred. The plan is also aimed at lowering taxation and simplifying the rules governing smaller companies. Among other things, the plan would introduce shorter amortization periods and tax relief for companies spending money on research and development. The ministry also intends to deal with double health insurance premiums paid by company employees who also run their own businesses. Finally, the plan proposes cutting labor costs by altering the minimum wage to reflect the level of unemployment in a given region and allowing lower wages for recent graduates and other young people. (Rzeczpospolita, p. B2) M.K.