Proposals for Special Economic Zones (SEZs) in the Suwalki and Katowice provinces have been accepted by the Economic and Socio-Political Committee of the Council of Ministers. The zones will exist for 20 years on terms similar to Mielec, i.e. benefits for investors include a 10 year exemption from corporate income tax, followed by 10 years liability to 50% of this tax.

A different approach in the establishment of these SEZ's is seen in that they are intended to be spread across several districts, and not just located in one geographical area.

It seems that it may be quite some time before any new zones now appear.

Tax laws and practise are constantly being revised and, whilst every effort is made to ensure that the information in this tax newsletter is accurate and timely, no decision should be taken on the basis of the information herein without first consulting with KPMG Polska.

Should you have any questions in relation to the above issues, please contact:
Oliver Sinton
KPMG Polska
LIM Center - Marriott Hotel - IX floor
Al. Jerozolimskie 65/79
00-697 Warsaw, Poland
Tel: +48 (22) 630 7236
Fax: +48 (22) 630 6355

This information was correct as of 3 July 1996.