Invest with us ! Słupsk Special Economic Zone www.sse.slupsk.pl 1 Dear Ladies and Gentlemen, Pomeranian Regional Development Agency was set up in 1994. Since its foundation all our activities have been aimed at harmonious cooperation with enterprises, business support institutions and local authorities. Our mission is to initiate, promote, and support activities by providing the finest quality services. Our main areas of activity are among others: promotion of regional development, including EU-funded projects implementation; administration of the Słupsk Special Economic Zone; administration of the Słupsk Technology Incubator, including Automation, Robotics and Visual Systems Laboratory as well as Renewable Energy Sources Laboratory; commercial activities such as: lease of lecture hall with a capacity of 300 persons, conference rooms, exhibition areas, organization of training courses, conferences (also international), trade missions; estate agency services; job placement services; organization of seminars and workshops; supporting the cluster initiatives, among the others the Szczecinek Furniture Cluster As an administrator of Słupsk Special Economic Zone (SSEZ) since 1997, we have been providing investors with favourable opportunities for dynamic growth by offering perfect sites in Pomerania and West Pomerania for industrial and service-orientated investments. 2 A model site of the Słupsk Technology Incubator (STI), which has been in operation since October 2012, has two specialist facilities. Automation, Robotics and Visual Systems Laboratory, which provides a cutting edge testing facility for companies looking to modernize and automate their machine stock. It is the only facility in our country where engineering staff can improve their automation, robotics, and visual systems skills. The laboratory boasts equipment of well-known and globally recognized brands: OMRON and KUKA e.g. SCARA and DELTA robots, a 3D scanner, a quality control visual system workstation. An additional advantage of the equipment pieces is their modularity and flexibility. A unique service is the possibility to rent the devices, which even in case of short-term contracts may accelerate their completion. Renewable Energy Sources Laboratory was opened in the STI. It includes the largest rooftop photovoltaic installation in Pomerania, ground-mounted photovoltaic microinstallation, 3kW horizontal wind turbine (the total installed capacity is nearly 220kW). It all comes together in a laboratory monitored and managed through a dedicated SCADA system. The RES laboratory offers proinnovative services for companies in the field of energy-saving in designed, constructed, and used buildings, workplaces, and production sites including: consulting, electricity cost reduction programs, technical and economic analysis of investment, energy yield simulation and effectiveness of applied solutions. Please check our offer for more details. Wishing you many successes. We look forward to working with you! The Board of PRDA 3 PRDA JSC has been the managing authority of the Słupsk Special Economic Zone since 1997. The permit for conducting business operations in the zone issued by the Zone Administrator on behalf of the Minister of Economy is the grounds to exercise tax exemptions and preferential conditions. The applicable procedures for the permit granting process and the acquisition of the right to use the property where business operations will be conducted are tenders or negotiations. Key legislation on operations of Special Economic Zones in Poland: Special Economic Zones Act – original text of 20 October 1994 – consolidated text 2015 Journal of Laws item 282 The Concept of Development of Special Economic Zones approved by the Council of Ministers on 27 January 2009 The Regulation of the Council of Ministers on public aid granted to entrepreneurs operating on the basis of a permit for conducting economic activity within special economic zones of 10 December 2008 (consolidated text of 12 March 2015 Journal of Laws 2015 item 465) The Słupsk Special Economic Zone Regulations approved by the Minister of Economy on 15 January 2010 The above and other legal texts are available on www.sse.slupsk.pl in the 'Download' section. I. SSEZ investment conditions* Obtaining a permit involves meeting the following criteria: incurring investment expenses of minimum €100,000, maintaining the investment project for no less than 5 years for a large enterprise from the date of finalizing the investment (3 years in case of small and medium enterprises), maintaining employment level for a minimum of 5 years for a large enterprise (3 years in case of small and medium enterprises), minimum share of own funds is 25% of total investment value, tax exemptions are only available to companies with a permit to operate in the zone. *pursuant to the Regulation of the Council of Ministers (Journal of Laws 2015, item 465) II. Forms of economic activity permitted in SSEZ Under the current legislation enterprises representing the following industries may apply for a SSEZ operation permit: manufacturing services (such as warehousing, storage of goods, logistics) BPO (including R&D, ICT, accountancy, bookkeeping, technical analysis). The scope of economic activity conducted by an entrepreneur applying for a permit must be in line with the scope of activity as defined in §2.1 of the Regulation of the Council of Ministers on granting public aid to entrepreneurs on the basis of a permit for conducting economic activity within special economic zones (Journal of Laws 2015/465). 4 III. Public aid Entrepreneurs conducting their activity in Słupsk SEZ are granted public aid in the form of personal or company income tax exemption. Public aid is granted for: new investments or creating new jobs The entrepreneur has full flexibility in his choice of public aid which he wants to apply for and is granted support until the entire available amount has been exhausted but no later than the Zone has ceased its operation (2026). The amounts of regional aid received from different sources – domestic or foreign – are subject to aggregation. Source: the Regulation of the Council of Ministers of 10 December 2008 (Journal of Laws 2015 item 465) <Link> An example of tax exemption on execution of a new investment The amount of regional aid granted to a business based on implementation of a new investment is determined as a product of the maximum amount of aid and costs eligible for the aid. Investment expenses: 10 million Considering maximum regional aid intensity of: 55% (for small and micro enterprises), 45% (for medium size enterprise), 35% (for a large enterprise) on the basis of a permit Maximum amount of aid will total: 10 m x 55% = 5,5 mln 10 m x 45% = 4,5 mln 10 m x 35% = 3,5 mln The eligible costs of a new investment is the expenditure incurred after obtaining the permit and related to the investment minus value added tax and excise tax, where deductible pursuant to other provisions, intended for: 1) purchase of land, or the right of perpetual usufruct of land; 2) purchase or production of tangible assets; 3) development or modernization of existing assets; 4) purchase of intangible assets in connection with obtaining patents, operational licenses, or patented know-how type licenses, as well as unpatented know-how intended to be used in the investment. 5) rental or lease of land, buildings or structures – on condition that the rental or lease period continues for a minimum of 5 years, and in case of small and medium enterprises – a minimum of 3 years after the anticipated of completion of the investment; 6) purchase of assets other than land, buildings, and structures covered by rental or lease in case it has the form of financial leasing and entails the obligation to purchase the assets upon the expiry of lease period. Investment costs for large entrepreneurs defined in point 4 are considered as eligible for public aid but not exceeding more than 50% of eligible expenditure discussed above. 5 Example of tax exemption on creating new workplaces Tax exemption constitutes regional aid granted to support creating new jobs connected with particular investment. The amount of aid is a product of the maximum aid intensity (55%, 45% or 35%) and the two-year cost of labour related to newly employed workers incurred by the entrepreneur (gross payroll cost plus all the other obligatory costs related to employment). Exemption entitlement is valid from the month in which the business incurred the labour costs until the regional aid allocated to employment has been exhausted on condition that newly created jobs are maintained over a period of five years or three years in case of small and medium enterprises. Examples: Example: large enterprise: Example: medium enterprise: employment: 500 employment: 200 monthly gross salary: PLN 3,000 monthly gross salary: PLN 3,000 period: 24 months period: 24 months 500 x 3,000 x 24 = PLN 36m 200 x 3,000 x 24 = PLN 14,4m Considering maximum regional aid intensity Considering maximum regional aid intensity of: of: 35 % (for large enterprises) 45 % (for medium enterprises) maximum exemption will total: maximum exemption will total: Total exemption amount: Total exemption amount: 36,00 x 35 % = PLN 12,6m 14,40 x 45 % = PLN 6,48m Example: micro enterprise: Example: small enterprise: employment : 5 employment: 30 monthly gross salary: PLN 3,000 monthly gross salary : PLN 3,000 period: 24 months period: 24 months 5 x 3,000 x 24 = PLN 0.36m 30 x 3,000 x 24 = PLN 2,16m Considering maximum regional aid intensity Considering maximum regional aid intensity of: of: 55 % (for micro enterprises) 55 % (for small enterprises) maximum exemption will total: maximum exemption will total: Total exemption amount: Total exemption amount: 0.36 x 55 % = PLN 0,198m 2.16 x 55 % = PLN 1,18m 6 IV. SSEZ land acquisition procedure Lp. Actions Who? Investor's application (outlining basic assumptions of 1. Investor the planned investment) Negotiations with an investor specifying details of his 2. PRDA investment (location, size etc) 3.