"In the new programme period for years 2014-2020 we propose new, more attractive conditions for obtaining property tax exemption"says Marcin Kieżyński, the director of the Debt Management Department of the City of Wrocław. "We mostly want to support actions aimed at creating new jobs, developing entrepreneurship and running active protective policy at the job market. Therefore, particular amenities pertain mainly to micro- and small entrepreneurs about to launch their business, and most of all, for small and medium companies implementing new technologies, functioning within business and technology parks, and special economy zones, as well as those, who intend to create new jobs. This is the constant element of the innovation support and entrepreneurship development strategy in our city.
Exemptions come easier
At the moment of starting their business, small and micro-entrepreneurs, who wish to receive a property tax exemption can't fall behind on their tax payments and other fees that make up the income of Wrocław City Community, should have their business office in Wrocław and maintain their business in operation for the whole period of exemption, which now has been prolonged from 3 to 5 years.
New proposals include also improving the conditions for granting the exemption to businessmen, who invest in the area of Wrocław. It will be possible owing to lowering by 50 percent the threshold of invested means at the moment of joining the programme. When investing 600,000 PLN, a small business owner will receive an exemption for a year, and each invested 50,000 PLN will prolong this period by another month. On the other hand, to get a year of property tax exemption, a medium-size company will have to invest 1.8 million PLN. Each 150,000 PLN invested will gain it another month. Lowering the threshold for large businesses was also planned, from 6 to 4.2 million PLN for a year of exemption. For each additional 350, 000 PLN, another month of exemption is planned.
In order to support construction of all-accessible parking places, the City of Wrocław intends to lower the threshold of tax waiver for 15 years, if the company decides to invest a minimum of 5 million PLN in building a facility to provide parking services.
Support for the innovative
Owners running their businesses in industrial parks, technology parks and special economic zones located in Wrocław can also count on some extra benefits.
"To support further development of parks and zones we offer prolonging the tax exemption after purchasing or building new facilities at its premises, from 3 to 5 years" says Marcin Kieżyński. "In case existing buildings are modernised, we lower the programme access thresholds by half, namely for each 50,000 PLN invested in modernisation of a building, as a part of the new investment, a tax exemption for 50 m sq will be due for 3 years.
Special amenities have been also prepared for innovative businessmen who implement new technologies, as well as companies who run R&D development, and carry out new investments in Wrocław.
As a part of the programme, also the space dedicated to R&D is due for tax exemption - 50 m sq of facility for each invested 5,000 PLN. If a company invests up to 2 million PLN, it can count on tax exemption for 5 years. When the investment amounts to between 2 and 6 million PLN, this time will be prolonged to 10 years, and in case of even greater investments, up to 15 years.
New jobs count
Regional subsidies will benefit also businessmen who create new jobs, related to new investments in the area of Wrocław. In such case, engaging one new employee will allow for increasing the size of property tax-exempted surface, from 40 to 60 m sq. At the same time the programme admittance thresholds were lowered. Instead of 5 employees, an annual exemption may be granted with just 2 employees. Each new person prolongs the exemption period by half a year, to maximum 3 years. The budget designated to the subsidy was increased from 15 to 50 million PLN.
In years 2006-2013 the total budget for property tax exemption amounted initially to 54 million PLN, however in the course of the programme it was increased to 94 million PLN. At present all Wrocław entrepreneurs can benefit from the property tax exemption subsidy, in years 2014-2020 - amounting to 260 million PLN.
More entrepreneurs will benefit
"The most important thing is that now more businessmen will be eligible for proposed amenities" says Marcin Kieżyński. "It will be made possible owing to simplified programme access conditions, and at the same time it will be more beneficial for them, due to prolonged periods of subsidising. We hope that the proposed exemptions will be made available to them from December this year.
To qualify for subsidy, one needs to submit an application before commencing work related to the new investment. The application needs to contain basic data about the investment and the investor, as well as name the subsidy programme to which it pertains. The prerequisite for qualifying for the subsidy is the minimum share of own funds, no less than 25 percent. The new investment needs to be maintained for 3 to 5 years, following the date of its completion.
Katarzyna Kunka
