Small companies in Special Economic Zones to have transition period to 2009

The Euro pean Commission is expecting to finally settle the matter of Poland's Special Economic Zones (SSEs) within a few weeks, which could mean that the largest investors in the SSEs will lose some of the tax breaks they expected. The government will probably sign a deal whereby the 100 biggest investors in the zones to have to comply with Euro pean Union (EU) competition rules, meaning that once Poland joins the EU, the tax breaks they are currently enjoying will not exceed 50% of the investment value. The EU said it could be flexible in evaluating the size of the investments and the government will assist the companies with their future investments. Meanwhile, several hundred smaller investors from the SSEs are likely to be granted a transition period until 2009, during which time they will benefit from the current rules. (Rzeczpospolita, p. B2) T.J.