The popular method of depreciation in Poland is the straight-line method. Depreciation maximum rate for buildings is 2.5% per annum, computers 30%, vehicles 20%, and for machinery and equipment is 7-25%.
Small entrepreneurs (legal and natural persons) with a turnover of less than 1,2 million Euros may fully depreciate the value of the fixed assets less than 50 000 EURO in one year.
Investment allowance – special economic zones
The Special Economic Zones are areas of the country where investors may carry out their economic activities by obtaining income tax relief (CIT or PIT) on the income earned from activities conducted in the zone and defined in the SEZ permit. The aim of the SEZ is to enable regions to develop more rapidly.
The benefits of operating within the SEZ are as follows:
- Tax exemption (CIT or PIT, depending on the form of business activity of the entrepreneur) on income derived from activity exercised in the territory of the SEZ and indicated in the permit in the amount from 15 up to 50%;
- Availability of attractive and already developed land plots with all necessary infrastructure;
- Possibility of real estate tax exemption;
- Administrative support granted by the management companies of the SEZ regarding legal issues.
On the other hand, the disadvantages of operating within the SEZ are as follows:
- Obligation to make investments and operate for at least 3 or 5 years;
- Obligation to pay a zonal (administrative) fee to cover the administrative costs of the management company of the SEZ;
- Additional reporting obligations;
- Additional verifications and inspections related to compliance with the conditions set out in the permit and aimed at assessment of the correct use of the public aid;
- Requirement of keeping separate accounting books.
Latest version updated 24th January 2018