Special Economic Zone (SEZ) is a designated area in which manufacturing or distribution activities can be conducted on preferential terms. The purpose of SEZs is to support regional development.

Tax incentives in SEZ may reach 60-70%. SEZ is a special area prepared for investor to start his business activity without obligation to pay income tax.

Special Economic Zones were created in Poland in order to:

• contribute to the economic development of Polish regions,
• enlarge the common usage of technical and technological knowledge in the national economy,
• increase the competitveness of polish products,
• create new jobs.

There are 14 SEZs in Poland. The management area is different in each of them – there are zones, which still have great investment opportunities, like for instance Legnica Special Economic Zone with 60% of free to invest area.

THE ATTRACTIVE INCOME TAX RELIEF ARE INCENTIVES FOR INVESTING WITHIN SPECIAL ECONOMIC ZONE

Generaly, there are two possibilities to get tax relief:

- BASED UPON THE INVESTMENT COST
The total amount of tax relief is in this case up to 50% (65% for SME) of qualified investment costs, providing corresponding fixed compounds of investment wail be kept for at least 5 year

- BASED UPON CREATION OF NEW JOB PLACES
The total amount of tax relief is in this case up to 50% (65% for SME) of two years employment costs of new employed workers, providing the new job places will be kept for at least 5 years
The both forms of aid are exemplified below.