Exemption from property tax

By way of a resolution, the municipal council established the exemption from real estate tax for entrepreneurs as one of the forms of state aid (RESOLUTION No X/72/15 of the City Council in GŁOGOWIE of 23 June 2015 on the exemption from real estate tax constituting regional investment aid).
Resolution No. X/72/15 in PDF format.

The aid resulting from the exemption from real estate tax corresponds to the value of the tax exemption. It is worth stressing that tax aid based on a resolution of the commune council and the provisions referred to in the resolution is the so-called "automatic aid", which means that an entrepreneur is entitled to exemption by virtue of law itself, after fulfilling the conditions set out in the resolution of the commune council. However, it is always a requirement to notify the intention to use the aid, in accordance with the model notification, which should be specified in a resolution of the municipal council. Any investment expenditure incurred prior to the exemption cannot be considered eligible costs.

De minimis aid exemption from property tax

The Municipal Council introduced a resolution (RESOLUTION No. LXVII/436/14 of 28 October 2014 on exemptions from real estate tax) constituting an aid scheme of tax exemption with solutions based on the Community provisions on de minimis aid.   
Resolution No. LXVII/436/14 in PDF format.

Offered help for companies that:

under the de minimis aid, they will create new jobs, which will be maintained for the period for which the entity benefits from the exemption; the exemption is granted for a maximum period: 12 months on condition that 3-10 new jobs are created and accordingly: 36 months (11-20) and 60 months (>20 new jobs).

Obligation to issue de minimis aid certificates.

The Act on proceedings in cases concerning public aid introduces the obligation to issue certificates stating that the granted public aid is de minimis aid.

Regional incentives

The basic form of state aid offered to entrepreneurs in the SEZ is exemption from income tax on income from business activity within a zone. The amount of public aid depends on the investment expenditure incurred by the investor related to the new investment and the size of the entrepreneur.

The maximum permissible intensity of public aid for large enterprises in Lower Silesia amounts to 25% of investment expenditure, medium sized entrepreneurs are increased to 35%, while small sized entrepreneurs are entitled to as much as 45%. In Lubuskie Voivodeship, where the LSEZ has a subzone in the commune of Iłowa, the public aid amounts to one after the other: 35%, 45% i 55%.

Investment outlays - include investment outlays eligible for public aid or two-year labour costs of newly employed employees related to a new investment carried out within a zone. The eligible investment expenditure shall be the investment costs less VAT and excise duty (if deductible under separate provisions) incurred within the zone during the period of validity of the permit, including:

• purchase price of land or right of perpetual usufruct of land
• purchase price or production cost of fixed assets
• cost of extension or modernization of existing fixed assets
• purchase price of intangible assets
• costs of renting or leasing land, buildings and structures for a minimum period of 5 years in the case of large investors or 3 years in the case of small and medium-sized investors
• the purchase price of assets other than land, buildings and structures covered by a lease where the lease takes the form of a finance lease and includes an obligation to purchase the assets at the expiry of the period of rental or lease

The two-year labour costs of newly recruited employees include the gross wage costs plus compulsory contributions, such as social security contributions, incurred by the entrepreneur from the date on which the employees were recruited. The exemption from income tax on legal and natural persons is granted from the month in which the entrepreneur incurred investment expenditures or labour costs, until the exhaustion of public aid.

Various forms of state aid, such as e.g. EU subsidies, exemptions from local taxes on real estate and buildings, grants and loans granted to entrepreneurs by local labour offices for the creation of new jobs and training of the previously unemployed are subject to aggregation and reduce the amount of state aid available to the entrepreneur.

Detailed information on the pages:

• The Legnica Special Economic Zone: http://lsse.eu
• Dawg Sp. z o.o. as a partner of the Lower Silesian Voivodship self-government in the development of entrepreneurship and the region's economy: http://dawg.pl
• Main Information Point of the European Funds in the Region: http://rpo.dolnyslask.pl
  

Investment incentives - national (government grants)

1. Polish Investment and Trade Agency
   Government grants are awarded on the basis of the Programme for supporting investments of key importance for the Polish economy for the years 2011-2023 (hereinafter referred to as the Programme) adopted by the Council of Ministers on 5 July 2011. Support is granted in the form of a grant on the basis of a bilateral agreement concluded between the Minister of Economy and the investor. The agreement regulates in detail the conditions for the payment of the grant, while observing the principle that the grant is paid in proportion to the degree of fulfilment of obligations.

   Support may be applied for only by entrepreneurs planning investments in the following priority sectors:

   • the automotive sector,
   • electronics and white goods manufacturing,
   • aviation sector,
   • biotechnology sector,
   • the agri-food sector,
   • modern services sector,
   • research and development (R&D).

   
   Moreover, support may be applied for by entrepreneurs planning production investments in other sectors, with minimum eligible costs of PLN 750 million and creating at least 200 new jobs, or with minimum eligible costs of PLN 500 million and creating at least 500 new jobs (significant investments).
   Detailed information - https://www.paih.gov.pl/dlaczego_Polska/zachety_inwestycyjne#

2. Intelligent Development Operational Programme
   The EU programme enables, among other things, support for research and development projects and implementation of the results of R&D work in the economy.
   For more information, visit - www.poir.gov.pl

3. Horizon 2020
   The largest ever programme to fund research and innovation in the European Union. Horizon 2020's budget for 2014-2020 is almost 80 billion euros. The aim of the program is to provide financing for modern projects from their first stages to the final implementation of solutions, products or technologies.
   For more information, please visit - www.instrumentyfinansoweue.gov.pl
   
   
4. Operational Programme Infrastructure and Environment
   An EU programme to enable companies to receive funding for activities such as low-carbon economy, environmental protection, energy security and health protection.
   For more information, visit - www.pois.gov.pl
   

 Information about the support within the scope of current legal regulations and state aid can be found at https://www.paih.gov.pl/pl and  www.paih.gov.pl/prawo/system_podatkowy