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Friday, 01 July 2011 02:16

Scheme for the promotion of investments of priority interest for the Polish economy

Foreign investors carrying out new investments in Poland can count on receiving support under the “Scheme for the promotion of investments of priority interest for the Polish economy” (hereinafter referred to as the Scheme), a document adopted by the Council of Ministers on 23 September 2008. The main objective of the Scheme is to boost innovation and productivity of the Polish economy by increasing the inflow of technologically advanced investments and creating highly productive jobs.

Form of support

Support is provided in the form of a grant on the basis of a bilateral agreement concluded between the Minister of Economy and the investor, pursuant to the Council of Ministers’ resolution on the establishment of a multi-annual programme of support for the completion of the investment. The agreement lays down detailed conditions for the payment of the grant whilst respecting the principle that the grant is paid proportionately to the degree of fulfilling one’s commitments.

State aid

State aid offered under the Scheme is consistent with the rules on the award of state aid in the EU, that is with the Guidelines on national regional aid for 2007-2013 (Official Journal of the European Communities C 54 of 4 March 2006, page 13) and Commission Regulation (EC) no. 800/2008 of 6 August 2008 declaring certain categories of aid compatible with the common market in application of Articles 87 and 88 of the Treaty (General Block Exemption Regulation) (Official Journal of the European Communities L 214 of 9 August 2008, page 3).

The state aid awarded under the Scheme falls under the category of regional ad hoc aid and therefore it must, as a general rule, be notified to the European Commission before it is granted. In the case when ad hoc aid only supplements the aid granted under regional investment and employment aid schemes (e.g. income tax exemptions in the special economic zone) and does not exceed 50 % of the total amount of aid granted for a given investment, it is not subject to the mandatory notification.

The basis for the adoption by the Council of Ministers of a resolution on the establishment of a multi-annual programme of support for a given investment is Article 117 of the Act of 30 June 2005 on public finances (Journal of Laws No. 249, item 2104 with subsequent amendments).

Beneficiaries

Support can be applied for exclusively by entrepreneurs planning investments in the following priority sectors:

  1. automotive sector,
  2. electronic sector,
  3. aviation sector,
  4. modern services sector,
  5. research and development,
  6. biotechnology.

The Scheme is to provide support for initial investments under the two following categories:

1. Aid intended to cover the costs associated with the creation of new jobs.

Sector

New jobs

and

Eligible costs of the new investment

Amount of aid

Aid intended to cover the costs of job creation

automotive, electronics, aviation, biotechnology

250

PLN 40 million

PLN from 3 200 PLN to 18 700

modern services

250

-

R&D

35

PLN 3 million

significant investment in other sectors

500

PLN 1 million

2. Aid intended to cover eligible costs of a new investment.

Sector

New jobs

and

Eligible costs of the new investment

Amount of aid

Aid intended to cover eligible costs of the new investment.

automotive, electronics, aviation, biotechnology

50

PLN 160 million

1-10% of eligible costs

significant investment in other sectors

500

PLN 1 million

Under the Scheme, aid is provided exclusively for investment projects whose completion in Poland is conditional on receiving a financial grant from the State budget.

The operator of the Scheme and the authority granting state aid is the Minister of Economy. The Polish Information & Foreign Investment Agency (Polska Agencja Informacji i Inwestycji Zagranicznych S.A. - PAIiIZ) is responsible for preparing and providing the Interdepartmental Team for Foreign Investment (hereinafter referred to as the Team) with the dossier of investment projects and for preparing all documents required to carry out the entire procedure of providing financial support.

The Team is headed by a member of the directorate of the Ministry of the Economy responsible for matters of investment support.

Each project is subject to an individual assessment by the Team on the basis of detailed criteria laid down in the Scheme.

Procedure for the award of support:

  1. The investor submits to PAIiIZ information on the planned project, using a standard form signed by persons authorized to represent the investor.

  2. PAIiIZ provides the Chairman of the Team with standard information about the project and a draft offer of financial support, with a justification, or a negative recommendation as to the provision of support.

  3. New proposals on support for investment projects are forwarded by PAIiIZ to the Chairman of the Team within three timeframes – by the end of February, by the end of June and by the end of October of a given year and in cases justified by the interest of the State also at different times and then the proposal may be examined by the Team at an ad hoc meeting. A decision on convening such a meeting is taken by the Chairman of the Team.

  4. PAIiIZ informs the investor of the Team’s recommendation. The Investor takes a decision on accepting or rejecting the offer.

  5. After accepting the offer, the investor applies to the Minister of Economy for a letter of intent confirming that the investment may commence.

  6. The Minister of Economy sends to the investor a letter of intent confirming that the investment may commence and asks the President of the Council of Ministers for permission to establish a multi-annual support programme and carries out the required legislative procedure. Upon receipt of the letter of intent, the investor may start the investment.

  7. After the adoption of the multi-annual support programme by the Council of Ministers, the Minister of Economy, as the authority awarding the aid, concludes with the investor an agreement on the award of a grant for the completion of the investment project.

The obligation to provide support to the investor arises after the investor and the Minister of Economy sign an agreement pursuant to the resolution adopted by the Council of Ministers on the establishment of a multi-annual programme of support for the completion of the investment.



Source: Polish Information and Foreign Investment Agency - www.paiz.gov.pl
Last Updated on Saturday, 23 February 2013 18:08
 
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