Special Economic Zones (SSE) cut back tax incentives for future investors

By the end of June changes in Special Economic Zone (SSE) tax policy are likely to come into effect. Presently, companies investing in an SSE are fully exempt from paying income tax during their first ten years of business. Following this period, companies can qualify for a 50% tax break on total investments. The new version of the bill, which is consistent with European law, will permit companies a 50% tax break, regardless of the time period. However, the government cannot cancel previously granted tax benefits. Companies such as ComArch, Howell and Kable, which have all spent large sums of money on SSEs and plan to spend more, are preparing for the changes. "Investments in the SSE are still very beneficial," claims Witold Struminski from Ernst&Young. "Despite demanding high investment they pay back very quickly." There are 15 active SSEs in Poland with a total investment value of zl. 6 billion. (Prawo i Gospodarka, April 22-24 , pages 1,19) M.M.