Katowice Special Economic Zone

The Sosnowiec-Dąbrowa  Subzone, in Dabrowa Górnicza, being a part of the Katowice Special Economic Zone, is the most efficient economic zone in Poland: 

  • area – over 187ha of the city area is included within the zone,
  • investors – 34 in subzone, 10 in Dąbrowa Górnicza,
  • total number of workplaces – 15 000,
  • investment expenditure – PLN 4,7 billion.

A company runs business activity within the Katowice Special Economic Zone (KSSE) on the basis of the authorization granted.

The authorization for running business operations within the KSSE includes two conditions which an investor has to fulfil.

The first is the creation of a specified number of new workplaces within the zone by a given date; the second is the incurring of a specified amount of investment expenditure within the zone by a given date. The date for the fulfilment of the two conditions is determined by the investor.
By newly employed workers is meant the number of workers who were employed after obtaining authorization for running business activities in the zone in connection with the implementation of new investment.

 

An entrepreneur undertakes not to transfer, in any form, any elements of assets to which investment expenditure was related:
• for a period of 5 years after the completion of the investment, in the case of large companies,
• for a period of 3 years, in the case of small and medium-sized businesses.

An investor undertakes to run business activity:
• for  a period not shorter than 5 years from the time of investment completion,
• for a period not shorter than 3 years, in the case of small and medium-sized businesses.

An investor undertakes to keep the employment declared:
• for a period not shorter than 5 years from the time of investment completion,
• for a period not shorter than 3 years, in the case of small and medium-sized businesses.

Moreover, the investor is obliged to submit monthly reports to the company managing the zone, KSSE S.A., including information on the actual employment status and the amount of investment expenditure.

 

Conditions to be fulfilled by the investor:

Making investments (and taking advantage of benefits, such as tax exemption) within the KSSE is conditional upon obtaining authorization for running business activity within the zone. Such authorization specifies the type of activity, and conditions relating to it, particularly:

• the entrepreneur has to employ a given number of workers for a specified period of time,
• the entrepreneur has to make investment of a value exceeding a specified amount, and, at the same time, the minimum level of investment costs is €100,000.

There is no condition specifying the minimum employment level. An investment project is evaluated individually, by the committee and management board of KSSE, and it is assumed that the number of new workplaces shall correspond to the average rate within the sub-zone. Currently, this rate equals roughly 35 workplaces per hectare.

How do you obtain authorization for running business activity within the zone?

The decision about which entrepreneurs will receive authorization is made by tender or during negotiations undertaken on the basis of a public invitation. The conduct, rules and conditions of the tender or negotiations, as well as the criteria for the assessment of intentions regarding business ventures to be undertaken by entrepreneurs within the zone, are determined in the Directive of the Ministry of Finance and Employment (Dz.U.04.254.2540).

 

Conditions for granting aid for a new investment:

  • the share of the entrepreneur’s own capital has to amount to at least 25% of the total cost of the investment,
  • running business activity for a period of not less than 5 years from the time of investment completion,
  • maintaining asset elements connected with investment expenditure for a period of 5 years after the date of their registration in the records,
  • maintaining the newly created workplaces for a period of not less than 5 years.

In case of small and medium-sized businesses, instead of the conditional 5 years, a period of 3 years is set.

Which costs qualify for grant-aid?

Expenditure qualifying for grant-aid is the cost of investments (reduced by Goods and Services Tax and excise tax, if the possibility of exemption arises under separate regulations) incurred within the zone whilst the authorization was valid. These are:

  • the purchase price of land or the price of perpetual licence;
  • the purchase price or manufacturing cost of fixed assets incurred by the entity itself, on condition that these assets are rated, in compliance with separate regulations, as elements of the taxpayer’s capital;
  • the cost of extension or modernization of the existing fixed assets;
  • the purchase price of non-material or legal values connected with the transfer of technologies through acquiring patent rights, licences, know-how or non-patented technical knowledge, subject to the provisions of sections 2 and 3.

Costs related to the purchase of assets included in a rent or lease, other than land, buildings or structures, are taken into consideration only in the case where the rent or lease takes the form of a financial lease and includes an obligation of purchasing assets at the date of expiry of the rent or lease. With reference to a rent or lease of land, buildings or structures, the rent or lease has to last for at least 5 years from the anticipated date of the investment project completion, and, in the case of small and medium-sized businesses, for a period of at least 3 years.

Non-material and legal values should meet the following conditions in toto:

  • they will be used by the entrepreneur who has been receiving regional aid, only on the site of the company for which the aid was granted to the entrepreneur, and
  • they will be included in the assets of this company and will be a part of them for at least 5 years, or, the in case of small and medium-sized businesses, for a period of at least 3 years;
  • they will be purchased from a third party on conditions not diverging from regular investment practice;
  • they will be subject to depreciation in compliance with the regulations of the accounting act.

 

Katowice Special Economic Zone SA 
Sosnowiec-Dąbrowa Subzone
8 Żytnia Str.
41-200 Sosnowiec,
tel. + 48 32 292 01 06
fax + 48 32 720 26 56
e-mail: sosnowiec@ksse.com.pl
www.ksse.com.pl

 

First contact person:

Bartłomiej Leszczyński
tel. +48 606 619 337
e-mail: b_leszczynski@ksse.com.pl