As one of the largest net beneficiaries of EU funds, Poland offers numerous investment incentives in the form of subsidies (funded both from the EU and on national level) and tax credits. The use of these incentives results in certain obligations on the part of entrepreneurs, such as the obligation to ensure project sustainability, or to obtain, in specific cases, an approval of the European for the provision of state aid.
Based on extensive experience from implementation of investment projects, SSW’s lawyers offer comprehensive legal advice in cases related to state aid and EU funds, related accounting and reporting, as well as in the structuring and transformations of entities benefiting from the aid.
Our advice related to EU funds includes:
- verification and assessment of projects with respect to financing opportunities
- examination of the (potential) beneficiary’s status in the context of the definition of a Small and Medium-sized Enterprise (SME)
- structure planning with a view to maintaining the SME status
- support during the procedure of applying for funds
- support in project accounting and reporting
- support in introducing modifications to projects covered by co-financing, including amendment of related agreements
- advice in transformations of entities that are beneficiaries of funds from the perspective of project durability principle
State aid – EU law
State aid is strictly regulated by community law and is subject to the exclusive jurisdiction of the Commission as regards the assessment of its admissibility. Any obtained state aid which is subsequently found inadmissible by the Commission involves the risk that it might need to be returned together with interest, and the risk is further augmented by exceptionally long statute of limitation period. The Commission may challenge illegal aid on the basis of a complaint submitted by another entrepreneur or a consumer.
We offer advice with respect to:
- assessment of the compliance of benefits obtained from public bodies (central and local) with the EU law,
- assessment of the necessity for the notification of the obtained aid to the Commission
- preparation of the notification of aid to the Commission and representation of the Client before the Commission in the related process
- drafting of complaints concerning illegitimate state aid received by a competitor and representation of the plaintiff before the Commission
- verification of the existence of state aid in relations with central or local government bodies (private investor/creditor tests).
State aid – domestic investment incentives
Poland offers a range of fiscal and non-fiscal investment incentives to investors. The scope of our services includes:
- identification of possible sources of investment co-financing (government grants, tax credits in Special Economic Zones - SEZs, exemptions from local taxes)
- full support of the process of applying for a given type of aid, as well as the preparation of a general Memorandum of Understanding concerning investment;
- ongoing advice concerning the accounting for and reporting on the aid (compliance);
- ongoing advice for investors engaged in activities in SEZ (interpretation of regulations concerning eligible expenditure, exemption provisions, calculation of jobs and exemption limits, permitting changes);
- tax reviews for entities benefiting from exemptions in SEZ during and upon the termination of the exemption (verification of the calculation of exemption limit, accuracy of accounting for the exempted and taxable income, allocation of costs to taxed and exempted activity);
- advice on the use of the R&D tax relief (identification of R&D costs, obtaining tax interpretations confirming the eligibility, support in calculation of the amount of relief).