President Piotr Roman Granted Rhenus Tax Exemptions Worth More Than PLN 13.5 Million

Rhenus Warehousing Solutions Bolesławiec is headquartered in Warsaw. It has a branch in Bolesławiec. It benefits from the tax exemptions provided for by the resolution of the Bolesławiec City Council adopted in 2015 concerning exemptions from property tax, constituting regional investment aid.

The resolution was in force until December 31, 2020, but under its provisions, the company may still receive exemptions if it met the conditions.

Land, buildings or parts thereof, as well as structures or parts thereof, located within the Municipality of Bolesławiec and connected with a new investment (...) shall be exempt from property tax for a period of 12 months. The exemption period shall be extended by one month for each additional PLN 1 million invested or for every three additional jobs created, provided that the total exemption period may not exceed 120 months.

Excerpts from the City Council resolution

Over seven years, the company received a total property-tax exemption of PLN 13,665,100 from Bolesławiec Mayor Piotr Roman.

The exemptions granted in individual years are shown in the table.

How did the city support entrepreneurs and combat unemployment?

Since 2004, Bolesławiec’s municipal government has undertaken a number of initiatives intended to reduce unemployment and support the city’s economic development. It is worth recalling that the unemployment rate was highest in 2004; in January 2004, the unemployment rate in Bolesławiec County reached as much as 28 percent. The negative consequences of this phenomenon were increasingly felt not only by people without work and their families, but also by the entire community. To increase Bolesławiec’s economic and social potential, the mayor, together with officials and councillors serving in successive terms, has taken steps aimed first at creating an economic activity zone and subsequently a special economic zone.

As early as 2004, the Bolesławiec City Council adopted a package of exemptions from property taxes and local fees for entrepreneurs, because tax exemption is one of the main investment incentives available to businesses in municipalities. On May 1, 2004, when Poland joined the European Union, new rules for granting public aid came into force. Because local law on tax exemptions for entrepreneurs had to be brought into line with those rules, it became necessary to adopt a new resolution in 2005 concerning de minimis aid. In 2007, it became possible to grant entrepreneurs de minimis aid of up to EUR 200,000 without requesting an opinion from the European Commission or notifying the resolution. In 2007, the Bolesławiec City Council adopted a resolution on exemptions for entrepreneurs creating new jobs, adapted to the relevant binding Community and national legislation.

During this period, a special economic zone began operating in Bolesławiec. The city’s offer included a site equipped with water and sewerage infrastructure and convenient access to the A4 motorway. The first investor appeared. The zone was an ideal place to invest for both large companies and small family businesses. Those who decided to invest in the special economic zone could count on tax exemptions amounting to 60 percent of investment expenditure for small businesses, 50 percent for medium-sized businesses and 40 percent for large plants. The terms of the tax exemption were set out in the permit to conduct business activity in the area covered by the special economic zone, which an investor receives after deciding to invest in the zone.

At that time, the municipal government ran the “Invest in Bolesławiec” campaign, aimed at creating new jobs and thereby reducing unemployment. These efforts produced the expected results. At the Bolesławiec Subzone of the WSSE, the following companies invested at that time: Hoerbiger Automotive Poland, Lesław Sacher Obróbka Skrawaniem Metalu, SRG Global (Guardian group), Elektros and Kegger. The declared investment expenditure was PLN 220 million, with 576 jobs declared. Investors locating projects in Bolesławiec could count on local-tax exemptions (property tax). Tax exemptions for entrepreneurs were set out in two Bolesławiec City Council resolutions—on de minimis aid and regional aid. Under de minimis aid, an entrepreneur could obtain a tax exemption after creating just five new jobs. Under regional aid, obtaining a property-tax exemption was conditional on incurring investment expenditure of at least PLN 500,000 or creating at least 20 new jobs. Higher expenditure or the creation of more jobs than the minimum extended the tax-exemption period. The maximum property-tax exemption period was 10 years.

Since 2007, exemptions from property tax constituting regional investment aid have covered the following companies: Hoerbiger Automotive Sp. z o.o. (2008–2016), Guardian Automotive Poland Sp. z o.o. (2009–2012), SRG Global Bolesławiec Sp. z o.o. (2013–2018), PPUH Elektros Sp. z o.o. (2013–2014 and 2020), Iwan Rafał, Ryż Łukasz (2013–2014 and 2020), Wiśniewski Bartosz (2016), Rhenus Logistics Bolesławiec (since 2017, with more than PLN 100 million invested in Bolesławiec), Zakłady Ceramiczne “Bolesławiec” (2018–2019), Bader Polska (2019) and Odrapak Logistyka Sp. z o.o. (2020–2022).

Resolution No. IX/126/2015 of the Bolesławiec City Council, dated June 3, 2015, concerning an exemption constituting regional investment aid, allowed entrepreneurs undertaking new investments or creating jobs connected with a new investment in the Municipality of Bolesławiec to benefit from property-tax exemptions. The resolution was in force until December 31, 2020. Four entities benefited from the exemption under the aforementioned resolution.

Property-tax exemptions under de minimis aid since 2007: Bader Sp. z o.o. (2007–2009 and 2011–2013), Smulders Groep Poland Sp. z o.o. (2007–2008) and Ibis Bolesławiec (2021).

The measures undertaken over the years had a significant impact on the city’s accelerated economic development and competitiveness, as well as on reducing unemployment. According to the latest data, the unemployment rate in Bolesławiec County has fallen to just 2.9 percent; in the city itself, it is even lower.