7. DISEÑO METODOLÓGICO
7.3 CONSTRUCCIÓN DEL INDICADOR MULTIVARIADO DE SEGREGACIÓN
Local government units can form investment climate in their area, among others, by allowing the application for relief and local taxes exemptions. Compared to other cities of the region, Radom offers extensive support for potential investors for new investment opportunities:
Scheme 5: Reliefs for investors in the City of Radom
Source: Own work
Tax relief and incentives offered to investors must be in accordance with Polish and EU legislation regulating the rules of state aid for businesses. Due to this fact, exemptions from property and means of transport tax are in force only to the 31st December 2013. Depending on the legal acts at European and national level,
further steps it will be undertaken by the City of Radom to support the investors who invest in the city. Creating a friendly investment climate in Radom set a basis to claim that, in case of opportunities arising from the superior acts, in the coming years, investors in Radom will be able to benefit from new incentives.
www.bip.radom.pl Załatw sprawę (Settle the matter) (Architecture) Architektura
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exemption from property tax
exemption from property
and means of transport tax
allowance in lease fee
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Basic data about the possibility of using reliefs related to carrying out the investments are summarised in the table below. Detailed conditions and modes of support are in the specified legal acts.
Table 44: Characteristics of incentives for investors in Radom
Exemption from property tax Exemption from property
and means of transport tax Allowance in lease fee
Legal basis
Resolution of the City Council in Radom No. 118/2007 dated 21st
May 2007 on de minimis aid in the form of exemption from
property tax
Resolution No. 165/2011 of the City Council in Radom from
29th August on Exemption
from property and means of transport tax
Regulation No. 1897/2009 of the President of Radom on 26th March
2009 on fixing of minimum rates of lease fee of real estate located in
particular areas of the city for investment areas and determining the amount of compensation for non-
contractual use of the property owned by the City of Radom and city
with district rights - Radom.
Subject of exemption
Lands, constructions, buildings or its parts which are a new investment and are owned or are in perpetual usufruct of the
entrepreneur.
Lands, constructions, buildings or its parts related to the
business, owned or in perpetual usufruct of the entrepreneur as well as means
of transport related to the business owned by the
entrepreneur.
Undeveloped land properties including investment parcels designed for services and industry
buildings. Lease fee discount amounts to 75% of the rate applicable in a given zone until the end of the investment on the subject
of the lease.
Entitled entities
Entrepreneurs realizing a new investment for the first time
in Radom excluding investments intended for
trading activities.
Entrepreneurs realizing new investment in Radom excluding investments intended for trading activities under the condition that, as a result of this investment, at
least five new workplaces will be created in the
taxpayer’s company.
Entrepreneurs realizing a new investment in Radom and creating at least 3 workplaces
associated with this investment
Entrepreneurs who invest on undeveloped land properties designated for services and industry
buildings.
Period of exemption
For the first investment of a given investors in the city, the exemption is for a period of 3 years but no longer than
31st December 2013
For new investments:
1 year: investment completed by 31st
December 2012 and 5
Exemption on a period of:
1 year - if the taxpayer created no less than 3 to 5
workplaces;
2 year - if the taxpayer created no less than 6 to 10
workplaces;
3 year - if the taxpayer created no less than 11 to
No longer than a period of 24 months from the date of the lease agreement
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new workplaces maintained for the
duration of the exemption; 2 years: investment completed by 31st December 2011 and 15 new workplaces maintained for the
duration of the exemption; 3 years: investment completed by 31st December 2010 and 25 new workplaces maintained for the
duration of the exemption; 4 years: investment completed by 31st December 2009 and 35 new workplaces maintained for the
duration of the exemption; 5 years: investment completed by 31st December 2008 and 45 new workplaces maintained for the
duration of the exemption.
15 workplaces;
5 year - if the taxpayer created 16 or more
workplaces.
The same time and employment limits concern exemptions from means of
transport of vehicles associated with business activity which are owned by
the entrepreneurs who realizes a new investment in
Radom and creates no less than 3 workplaces.
Duration period
Is in force to 31st December
2013
The term to gain the exemption is completion of the
investment and creation of new workplaces until 30th
September 2013. Assistance can be given until 31st
December 2013.
unspecified
Source: Own work
In Radom, there are areas covered by the special economic zone - Tarnobrzeg Special Economic Zone EURO- PARK WISŁOSAN. The SEZ was established by the resolution of the Government Order of 9th September 1997
on the Establishment of a Tarnobrzeg Special Economic Zone (Journal of Laws No. 135, item. 907 as amended) by a law delegation in accordance with Article 5 of the Act of 20th October 1994 on Special
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Economic Zone (Unified Act dated 2007 Journal of Laws No. 42 item. 274, as amended) and is valid until 31st
December 2020.
Entrepreneurs conducting business activities within Tarnobrzeg Special Economic Zone may apply for public aid in the form of tax exemptions.
Permits may be granted for business activity in the manufacturing and services sector with the exception of activities such as:
manufacturing of explosives, tobacco and fuel processing as well as production, bottling and processing of alcoholic beverages and spirits destined for purposes other than the production of bio- components;
leading games centers referred to in the Act of 19th November 2009 on gambling (Journal of Laws No.
201, item. 1540);
services of installation, repair, maintenance and renovation of machines and equipment used for business activity in the zone area;
services connected with channeling and purifying of sewage, sewage sludge, defined in Section E in Chapter 37 of Polish Classification of Goods and Services established by the Regulation of the Government Order of 29th October 2008 on the Polish Classification of Goods and Services (PCGS)
(Journal of Laws No. 207, item. 1293 and No. 220, item. 1435 and of 2009 No. 33, item. 256 and No. 222, item. 1753), hereinafter referred to as "PCGS";
services connected with collection, processing and neutralizing of waste materials, recycling of raw materials defined in Section E Chapter 38 of PCGS, with the exception of:
o non-hazardous waste materials, which can be recycled, specified in category 38.11.5,
o hazardous waste materials defined in categories: 38.12.22.0, 38.12.24.0, 38.12.25.0 and subcategories 38.12.27,
o waste of organic solvents defined in category 38.21.3,
o services of recycling raw materials and recyclable waste specified in the section 38.3;
services connected with reclamation and other services related to waste management defined in section E, chapter 39 of PCGS;
buildings and construction works defined in Section F of PCGS;
wholesale and retail trade, repairing of cars and motorcycles as well as services related to accommodation and catering services defined in sections G of PCGS;
towing services in road transport defined in section H in the subcategory 52.21.25 of PCGS;
licensing services in the field of information and communication defined in section J of PCGS related to: o acquiring rights to books, brochures, leaflets and maps specified in category 58.11.6,
o acquiring rights to using registers and lists particularly address and telephone ones defined in category 58.12.3,
o acquiring rights to journals and periodicals specified in category 58.14.4, o acquiring rights of other printed materials specified in category 58.19.3, o acquiring rights to use computer games specified in category 58.21.4, o acquiring rights to use computer programs specified in category 58.29.5;
services in the field of information and communication defined in Section J of PCGS related to:
o production of films, video, television program, sound recording and music defined in section 59 with exception for services related to releasing sound recordings and music defined in 59.20.3,
117 o broadcasting of public and subscription programs defined in section 60,
o other services in the scope of information defined in section 63.9;
financial and insurance services and services related to real estate defined in sections K and L of PCGS; professional, scientific and technical services, defined in section M of PCGS with the exception of:
o services in the field of financial audit specified in category 69.20.1, o accounting and accountancy services specified in category 69.20.2, o services of technical testing and analysis within section 71.2,
o services in the field of research and development defined in section 72;
administration services and support services defined in section N of PCGS except for call centers defined in group 82.2;
public administration services and defense services; services in the field of social security and education, health care and social assistance, culture, entertainment, sport and recreational defined in sections O-R of PCGS;
other services defined in section S of PCGS except for repair and maintenance of computers and communication equipment defined in group 95.1 of PCGS;
household services and services provided by extraterritorial organizations and bodies defined in sections T of U PCGS;
economic activity for which a license is required which must be in accordance with Article 32 sec.1 of the Act of 10th April 1997 - Energy Law (Journal of Laws of 2006 No 89, item. 625, as amended). defined in Article 1 P sec. 2-6 of Commission Regulation (EC) No. 800/2008 of 06th August 2008 State aid granted to entrepreneurs in the form of tax exemptions is a regional aid:
of new investment costs
of creating and maintaining new workplaces
The amount of aid in case of new investment costs is a product of the maximum aid intensity specified for a given area and investment costs eligible for aid. The amount of aid in case of workplace creation is calculated as a product of maximum intensity specified for a given area and the two-year labour costs of newly employed workers. The condition of granting the assistance in case of new investment is investor’s own funds defined as funds which have not been obtained in the framework of granted aid and amounting at least to 25% of the total eligible costs of the investment.
Creating new workplaces means a net increase of workplaces in the company in connection with the implementation of a new investment in relation to the average employment over 12 months prior to the day of getting the permit. The two-year cost of new employees includes gross salaries of employees increased by compulsory contributions such as social security contributions paid by the entrepreneur from the day of employment.
The aid for new investments can be granted together with the aid for creating new workplaces provided that the total volume of aid does not exceed the maximum amount of aid, while the allowable amount of aid is defined as a product of the maximum intensity of aid and a higher amount of costs of new investment or two-year labour costs of newly employed workers.
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The aid, on account of new investment costs or new workplace creation, can be granted together with other aids for new investments or new workplace creation, regardless of its source and form provided that the total value of the aid does not exceed the allowable amount of aid.
Maximum aid intensity of investments in Radom in Tarnobrzeg Special Economic Zone EURO-PARK WISŁOSAN is 50% of costs eligible for covering of the aid.. In case of
the Masovia Province, basic intensity of aid - resulting from the regional aid map - is 30%. Regional aid map, introduced by Government Order of 13thOctober 2006,
specifies the maximum percentage level of support in various regions.
Entrepreneurs of SME sector with exception of entrepreneurs in transport sector can increase basic level of aid intensity:
• about 20% for micro and small entrepreneurs or • 10% for medium-sized businesses.
The data taken into account while determining the status of the company are described above.
In the case of regional aid granted to entrepreneurs for implementation of large investment project, the maximum amount of assistance is determined by the following formula:
I = R x (50 MM EUR + 0,5 x B + 0,34 x C)
Particular symbols means:
I - maximum amount of assistance for large investment project,
R - aid intensity for the area of investment location,
B - amount of costs eligible for aid more than 50 MM EUR and no more than 100 MM EUR
C - amount of costs eligible for aid exceeding 100 MM EUR.
A large investment project should be understood as a new investment undertaken in the period of 3 years by one or more entrepreneurs in which case, the fixed assets are combined in an economically indivisible way and whose eligible costs for aid exceed the equivalent of 50 MM EUR and were calculated by the exchange rate announced by the National Bank of Poland on the basis of prices and exchange rates on the day of permit.
Investors are entitled to exemptions until the depletion of regional aid provided that the company from SME sector will be maintained for a given period of time - 3 years for large enterprises - 5 years.
Investors are entitled to exemption from income tax in case of new investment cost or costs of new workplaces only if the activities are conducted within the Zone. In the case of conducting the business activity simultaneously outside the area of Zone, the activities carried out within the Zone must be organisationally separated (particularly accounting and human resources) and the size of the exemption is determined against the data of the organisation which operates solely within the zone.
enterprise category MEDIUM SMALL MIKRO number of employees <250 <50 <10 revenue ≤ 50 mln euro ≤ 10 mln euro ≤ 2 mln euro annual balance sheet ≤ 43 mln euro ≤ 10 mln euro ≤ 2 mln euro
119 Expenditures eligible for aid are costs associated with implementation of investments reduced by input tax on goods and services and excise duty (if the possibility of deductions comes from separate regulations) incurred in the Zone during the duration of the license which are:
• purchase price of the land or the right of perpetual usufruct,
• purchase price or cost of production within the scope of one's assets provided that they are counted in accordance with separate regulations - to taxpayer's assets,
• cost of expansion or modernization of existing fixed assets,
• acquisition cost of intangible assets related to the transfer of technology by the acquisition of patent rights, licenses, know-how or unpatented technical knowledge,
• cost associated with the rent and lease of the land, buildings and structures - provided that the rent and lease period is at least 5 years, and, in the case of small and medium-sized enterprises, at least 3 years counting from the expected date of completion of new investment,
• purchase price of assets other than lands, buildings and constructions covered by the rent or lease if the lease or rent is in the form of financial leasing and contains an obligation to purchase the asset by the day of expiry of the lease period
The minimal investment expenditure is 100,000 EUR according to exchange rate announced by National Bank of Poland from the day of permit.
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6 Elements of the promotional plan
of investment areas of the City of
Radom
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6.1 Introduction
A significant impact on the effectiveness of promotional activities of investment areas, because of their key role in the economy of the city, is their coherence. It is necessary to plan the channels of communication with the surroundings and the use of adequate tools in the whole process of creating a future plan for promotion of investment areas of Radom City.
The aim of the promotional plan for the future investment areas is, among others, to increase the recognisability of the investment offer to potential investors. Getting through the information about the investment opportunities to the largest group of potential recipients should help to find people interested in investing and doing business in the areas of the city.
The most important tasks facing the City of Radom in the area of investment promotion include: Preparing a coherent plan for promotion of investment areas.
Increasing the number of business and promotion initiatives encouraging investment in the city. Increasing and enabling easy access to the information about the available investment resources of
the city.
Conveying the fact of owning investment areas to all interested Increasing the number of potential investors.
The subject of the future promotional plan is the development of sites located in the City of Radom in accordance with the specifications presented in Section No. 1