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Time limit for Special Economic Zones to be extended until 2026


The Ministry of the Economy has drawn up regulations extending the lifetime of Poland’s 14 Special Economic Zones (SEZ) by six years to the end of 2026, and is considering the abolition of the time limit altogether at a later date, Rzeczpospolita has learnt. If all goes to plan, the government could approve the six-year extension in late May or early June.

The news is crucial for continued investment activity in the zones, as many companies make investment projects conditional upon the abolition of the 2020 time limit so that they are able to take full advantage of the tax breaks available in the zones.

In the opinion of Pawel Tynel, head of grants and incentives at Ernst & Young, a swift decision to approve the six-year extension would reassure investors, but bolder action is needed to prevent a repeat of the situation within a few years. According to the newspaper, the ministry is considering a far-reaching amendment to the SEZ Act that would introduce e.g. 15-year investment permits while lifting time restrictions on the operation of the zones.

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