Eligible costs under the Polish Investment Zone

How do eligible costs affect the amount of the tax exemption available under a decision on support issued under the Polish Investment Zone?

The Polish Investment Zone – which we have discussed in greater detail in our article outlining the scope of support available to investors under the Polish Investment Zone – is an instrument enabling businesses to benefit from an income tax exemption in connection with the implementation of a new investment.

This form of state aid is subject to a cap, with its amount depending primarily on the level of eligible costs incurred. In practice, therefore, eligible costs are of crucial importance to entities seeking support.

Although, in the past, the tax authorities approved as eligible costs only expenditure directly linked to production, such as production halls, machinery or production lines, recent practice shows a departure from this strict interpretation. This is very good news for taxpayers setting up a business in Poland or expanding their operations in the country.

New approach of the authorities to investment components eligible under the Polish Investment Zone

Since late 2025, experts offering tax advisory services to businesses have observed a change in the tax authorities’ approach to the classification of eligible costs under the Polish Investment Zone. Following a series of favourable judgments issued by Voivodeship Administrative Courts and final rulings of the Supreme Administrative Court, the tax authorities have revised their interpretative stance.

Under the latest approach, eligible costs of a new investment should not be interpreted narrowly, nor should they be limited (as previously) solely to expenditures directly related to the development of production activities. Instead, investment projects should be assessed from a broader perspective, taking into account their overall economic context and the fact that many investments also require appropriate ancillary infrastructure.

In particular, in its judgment of 28 March 2024 (case ref. no. II FSK 807/22), the Supreme Administrative Court held that when assessing eligible costs under the Polish Investment Zone, the key consideration is the functional connection between a given asset and the investment covered by the decision on support, rather than the asset’s direct involvement in the production process.

This direction is also reflected in the latest tax rulings. In a tax ruling issued on 21 January 2026 (0111-KDIB1-3.4010.646.2025.2.DW), the Head of the National Revenue Administration Information Centre confirmed that expenditure on social and office facilities, as well as on the land development around a new production and warehouse hall, may be recognised as eligible costs. This position aligns with the increasingly established line of interpretation under which the decisive factor in determining whether expenditure does qualify is its connection with the implementation of the new investment.

What does this mean for businesses applying for support under the Polish Investment Zone?

The new position taken by the authorities is undoubtedly good news for taxpayers seeking ways to reduce their tax burden. Businesses planning a new investment can significantly increase the amount of their income tax exemption by recognising as their eligible costs expenditure that, until recently, could not have been taken into account in the calculation. The types of expenditure previously recognised as eligible costs included expenditure on:

• establishing a new production facility,
• increasing the production capacity of an existing facility,
• diversifying production,
• introducing a fundamental change to the production process.

These can now be supplemented by additional categories, including expenditure on:

• social and office facilities,
• development of the area surrounding a new production and warehouse hall.

This approach makes it possible to obtain confirmation that, in a particular case, expenditure such as that incurred on social and office buildings and on the land development around a new production and warehouse hall may indeed be treated as eligible costs.

If you are planning a new investment, we invite you to reach out to us. Our team of tax advisors, specialising in supporting both Polish and international businesses, will be happy to assist you in reducing your tax burden and help you prepare both an application for an individual tax ruling and a comprehensive application for a decision on support, featuring a detailed description of the investment.