Draft Amendment to the Act on Supporting New Investments (PSI) – Significant Changes for Investors Effective January 1, 2027
The Ministry of Finance and Economy has published a draft amendment to the Act of May 8, 2018, on Supporting New Investments (hereinafter: the Act on WNI), which constitutes the most far-reaching reform of the rules governing the Polish Investment Zone since its launch in 2018. The draft provides for the main part of the changes to take effect on January 1, 2027.
The planned regulations are intended to simplify the use of tax exemptions, reduce long-standing disputes over interpretation, and increase the efficiency of public aid utilization. At the same time, some of the changes will require businesses to reassess their investment strategies and the method of accounting for exempt income.
The reform, as part of the amendment to the Act on Special Investment Zones (WNI), constitutes a complete restructuring of the Polish Investment Zone (PSI). This is directly linked to the formal termination of the Special Economic Zones (SEZs) as of December 31, 2026. Starting January 1, 2027, support for businesses will be provided exclusively under the Act on Investment Incentives.
Below is a summary of the most important changes:
Abandoning the concept of “close links” in calculating exempt income
One of the most significant changes is the abandonment of the current approach, under which entrepreneurs must demonstrate a close link between their income and a specific new investment covered by a support decision.
According to the draft, the exemption is to cover all income generated by an existing set of assets, provided that the business activity covered by the support decision and the business activity conducted to date are classified under the same PKWiU code and are carried out at the same location.
Importantly, the ability to depart from the project-based approach and the concept of “close links” will apply to income from business activities specified in support decisions obtained on or after January 1, 2022.
Implications for Investors:
In practice, this change will significantly simplify matters for investors expanding their facilities. The entry into force of the proposed regulations will greatly simplify tax reporting for investors who have conducted both tax-exempt activities under the Support Decision and taxable activities within a single facility—including in cases where such decisions are already in effect.
Relaxation of Employment Requirements and a New Legal Definition
If a taxpayer calculates eligible costs solely on the basis of capital expenditures (rather than labor costs), the requirement to create a specific number of new jobs will be eliminated. Additionally, the Act will include a precise, legal definition of “employment level,” which will resolve existing interpretive disputes.
Implications for Investors:
This change will increase the attractiveness of the Polish Investment Zone (PSI) for capital-intensive investments carried out with limited employment growth, particularly in manufacturing sectors that utilize automation and modern technologies. At the same time, the statutory clarification of the concept of employment level should reduce the risk of disputes with tax authorities and facilitate planning to meet the conditions of the support decision.
Digitization of the Process – the ePSI Platform
The amendment provides for the creation of the Electronic Platform of the Polish Investment Zone (ePSI). This means that the entire process of applying for a Support Decision, amending the decision, terminating it, and monitoring its effects will be transferred to an ICT system.
In practice, the application procedure will be expedited, and built-in validators will reduce the risk of formal errors. However, this will also make it easier for authorities to continuously and automatically verify whether investors are meeting the quantitative and qualitative indicators they have declared.
The ePSI initiative is scheduled to take effect on July 1, 2028.
Implications for Investors:
Digitization should reduce the time required to process cases and limit the number of formal errors on the part of businesses. At the same time, investors will need to prepare for greater transparency in the process and more systematic monitoring of the fulfillment of obligations arising from support decisions.
Changes to the Content of Support Decisions
There are also plans to extend and standardize the validity period of support decisions: 15–20 years for all areas. This represents a significant change from the currently applicable regulations, under which support decisions are issued for a period of 10 to 15 years—depending on the location and intensity of the aid.
The mandatory elements of support decisions have also been clarified, including the scope of business activities related to the new investment.
Additionally, there are plans to eliminate the requirement to create new jobs if the investment involves robotization and automation (e.g., the purchase of an industrial robot).
The rules for amending the DoW will also be clarified—a request for amendment may only be submitted before the deadline for fulfilling the conditions. Furthermore, a ban will be introduced on freely changing employment status, PKWiU codes, and the project site.
Implications for Investors:
A longer validity period for decisions will increase the predictability of tax benefits and may improve the profitability of investment projects. At the same time, the greater detail of the decisions and the limited ability to modify them later mean that investment parameters must be planned even more carefully at the application stage. The new regulations may prove particularly beneficial for projects related to automation and robotization.
Opinion of the Head of the National Tax Administration (KAS) — a new institution
Currently, decisions are issued by area managers on behalf of the competent Minister. The National Tax Administration verifies settlements retrospectively (during audits)
Once the proposed changes take effect, the competent minister will be required to obtain an opinion from the Head of the National Revenue Administration (KAS) before issuing a decision on state aid if the maximum allowable amount of state aid is at least 25,000,000 PLN (below this threshold, the opinion will be issued at the investor’s request). The opinion will concern the amount and scope of income eligible for the exemption.
The opinion will be issued within one month (with the possibility of a one-month extension). If it is not issued within the deadline, tacit approval will be presumed. The opinion will be issued in the form of a decision, against which no appeal may be filed. Tax authorities will be bound by this assessment, which is intended to serve as a safeguard for the investor.
For investors, these changes mean that application documentation must be prepared with precision from the very beginning of the application process, as the National Revenue Administration (KAS) will review the planned investment while it is still in the planning stage.
Until December 31, 2028, the opinion will be issued only if the threshold for the maximum allowable amount of public aid is at least 25,000,000 PLN.
Implications for Investors:
The new mechanism shifts part of the tax review to the stage preceding the issuance of the support decision. Consequently, investors will be required to prepare their application documentation with great precision at the initial stage of the application process, as the National Revenue Administration (KAS) will review the planned investment while it is still in the planning phase. This may prolong the preparation of the largest investment projects and increase documentation requirements, but at the same time it will provide greater certainty regarding the method of calculating exempt income and reduce the risk of subsequent disputes with tax authorities.
Other Changes – Audits, Data, Related Laws
The amendment also includes, among other things:
- Granting new powers to zone management companies regarding the implementation of renewable energy projects for the benefit of the investors they serve,
- The Zone Fund will be dissolved, and the accumulated funds will be transferred directly to the state budget account.
- Introducing an obligation to submit copies of the DoW to the Head of the National Revenue Administration (KAS) as well,
- Extending the deadline for preparing the audit report from 30 to 60 days,
- Granting the Minister of Economy access to tax data on the amount of support in order to evaluate the effectiveness of tax reliefs.
Implications for Investors:
These changes strengthen oversight of the PSI system and expand the scope of information exchange between public institutions. Businesses should expect greater transparency in the process of accessing public aid and more detailed scrutiny of ongoing investments. At the same time, the new powers granted to regional administrators may, in the future, make it easier for investors to carry out projects related to green energy and the energy transition.
Entry into Force
In principle, the proposed regulations are scheduled to take effect on January 1, 2027.
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The proposed changes are currently under review.
If you have any questions regarding the proposed changes, how their implementation will affect your business, or how to effectively prepare for them, please contact us:
KONTAKT
E: magdalena.keska-nowicka@pl.Andersen.com
T: +48 570 287 267
