Publication date: August 25, 2026
The development of the Polish investment support system began in the mid-1990s, when Special Economic Zones (hereinafter referred to as SEZs) were established under the Act of 20 October 1994. According to Article 2 of this Act, the system was limited solely to designated, uninhabited areas of the territory of the Republic of Poland, where business activity could be conducted on preferential terms. However, a real breakthrough in this approach occurred in 2018 with the entry into force of the Act on Supporting New Investments. This introduced a completely new model – the support system was no longer limited to closed sectors. The resulting Polish Investment Zone effectively recognized the entire territory of Poland as a single large area where entrepreneurs could apply for aid for new projects. The primary support tool in both regimes remained the income tax exemption. In this respect, the Acts refer directly to the Corporate Income Tax Act of 15 February 1992 (CIT Act) – and in particular to Article 17, paragraph 1, item 34 (regarding exemptions within SEZs) and Article 17, paragraph 1, item 34a (regarding new investments within PSIs). We are currently at a key, transitional moment in this evolution. The historical SEZ system has a strictly defined expiry date – it will expire irrevocably at the end of 2026, giving way only to new regulations. This study outlines the framework for this transformation, from the zones being phased out to the current challenges and simplifications in the investment support system.
Current regulations relating and changes pursuant to the regulation
The main tool stimulating development under the 2018 Act on Supporting New Investments (PSI) is the exemption from corporate income tax (CIT). This mechanism is based on the implementation of a historically proven solution known from Special Economic Zones (SEZs). This exemption is treated directly as regional public aid from the state. Although in both regimes – the old SEZ Act and the new WNI Act – the exemption mechanism itself is based on general provisions (lex generalis), namely the Corporate Income Tax Act, the scope of this aid is not unlimited. The fixed, maximum level of support an investor can expect is defined directly by the zone regulations and specified in the relevant implementing regulations of the Council of Ministers. In the case of SEZs, the amount of support granted cannot exceed the maximum permissible amount specified in these acts.
A crucial element of the current system is significantly facilitating access to support for large businesses. Under the new regulations, in the enumerated counties (located primarily in the eastern and northern regions, including Suwałki, Białystok, and Chełm counties), minimum investment costs have been reduced from PLN 60 million or PLN 40 million to just PLN 10 million. Furthermore, in accordance with the zone rules, if an investor decides to reinvest (e.g., expand an existing plant), this threshold is further reduced by half. As a result, a large business requires just PLN 5 million to enter the support system. This solution is intended to provide a powerful incentive for private capital to invest in less developed regions of Poland.
The aforementioned mechanisms are detailed in the Regulation of the Council of Ministers of December 27, 2022, which was amended on June 13, 2025. This Act precisely defines the list of excluded activities, i.e., those that cannot apply for support under the Act. According to the new wording of the regulations (§ 2, paragraph 1, point 2), ineligible activities include, among others, the production of tobacco products and the production, bottling, and processing of alcoholic beverages (with the exception of biocomponents). On the other hand, the amendment brought a significant opening for the defense sector – by repealing § 2, paragraph 1, point 1, the production of weapons, ammunition, and explosives was removed from the current list of exclusions. As a result, entities in the defense industry can now apply for tax relief under the terms of the Act.
The culmination of changes to the new investment support system is an amendment scheduled for 2026 (Council of Ministers bill no. UD391). To compensate entrepreneurs for the new fiscal burden, the government proposes, among other things, relaxing the investment timeframe. A key element of the amendment is extending the validity of the Support Decision ( DoW ) for all areas to 20 years. It is important to note that the DoW is a key administrative act issued within the Polish Investment Zone, formally granting the right to corporate income tax exemption. While this change does not de jure affect the amount of public aid, it de facto increases the effectiveness of this mechanism. Investors will gain a stable, 20-year time buffer, allowing for more flexible management of the effective tax rate.
An analysis of the official assumptions for the UD391 project, available on government websites, allows us to clearly understand the legislator’s intentions. As indicated in the recitals, the main goal of the planned legislative change is to reverse the negative trend and ensure that support instruments in Poland remain attractive to large businesses (both domestic and foreign). This is a direct and necessary response to new international regulations that have drastically reduced the attractiveness of traditional tax exemptions for the largest capital groups.
The need to introduce these simplifications stems directly from the adoption in 2024 of the Act on Equalization Taxation of Component Entities of International and Domestic Groups. This Act implements EU Council Directive (EU) 2022/2523. It imposes a new obligation on component entities of international groups and large domestic groups whose consolidated revenues exceed the threshold of €750 million. The overarching goal of these regulations—the minimum tax rate set at 15%—introduces significant restrictions for entities benefiting from national regional support instruments. Pursuant to Article 1, Section 2 of the Polish Act, revenues from the new tax (comprising the global and domestic equalization tax) constitute state budget revenue.
To fully understand the reasons for introducing the top-up tax, it’s necessary to refer to the recitals of the EU directive. Recitals 1 and 2 clearly express concerns about tax avoidance by giant corporate groups (MNEs). The European Union aims to ensure that they pay fair tax where they actually generate profits. Recital 4, in turn, explains the need for coherent and coordinated action in the form of a directive – this is intended to prevent fragmentation of the internal market while giving Member States the freedom to integrate these mechanisms into their national systems.
However, when imposing the new tax, the legislator provided certain protective mechanisms, crucial for entities operating in SEZs and PSIs. As explicitly noted in recital 14 of the directive, in situations where an SEZ conducts genuine economic activity requiring a physical presence (investing in production facilities and employing workers), the risk of artificial profit transfer is minimal. This has a direct impact on Polish law (generally in force since 1 January 2025). Article 101 introduces the so-called “capital and personal income tax exemption,” which mitigates the effects of the new tax proportionally to the wage costs and value of tangible fixed assets incurred in the zones.
SSE what will happen after December 31, 2026
The draft amendment to the Act on Supporting New Investments (No. UD391) does not introduce provisions extending the validity of historical SEZ permits. This represents a final acceptance that, as of December 31, 2026, the Special Economic Zone system will irrevocably expire, and the SEZ Act itself will cease to apply. Consequently, entrepreneurs using the old permits will lose the right to continue to apply the CIT exemption after this date, and their unused public aid limits will simply be forfeited. It should be emphasized, however, that the tax exemption will apply to all income actually generated (obtained) by December 31, 2026, even if it is formally reported in the annual CIT return after the SEZs expire. The overarching goal of the proposed amendment is, therefore, to encourage investors to smoothly transition to the reformed Polish Investment Zone regulations.