RESTRICTED
WORLD TRADE G/SCM/N/9/POL
23February 1996
ORGANIZATION(96-0678)
Original: English Committee onSubsidies andCountervailing Measures
NOTIFICATIONS UNDER ARTICLE 29.3OFTHE
AGREEMENT ONSUBSIDIES AND COUNTERVAILING MEASURES
Thefollowing communication, dated 7February 1996, hasbeenreceived fromthePermanent
Mission ofPoland.
_______________
Please findattached Poland 'snotification under Article 29:3oftheAgreement onSubsidies
andCountervailing Measures together withtheEnglish textoftherelevant pieces ofnational legislation.
Pursuant toArticle 29.3oftheAgreement onSubsidies andCountervailing Measures Poland
hereby notifies itspresently existing, export-related subsidy programmes. Poland reserves itsrights
under paragraph 3ofArticle 29tomake further notifications uptotwoyears fromtheentry intoforce
oftheWTO Agreement. Thisnotification iswithout prejudice tothelegalstatus ofthemeasures notified.
I. INVESTMENT-RELATED TAX REBATES
1. Policy objectives oftheprogramme, including sectoral objectives
Thepolicy objective oftheprogramme istoencourage investment. Taxrebates related to
investmentareavailabletoalltaxpayers,including,butnotlimitedto,actualexporters,whomeetcriteria
specified intherespective legislation,
2. Dateofestablishment oftheprogramme
Theprogramme became effective on10February 1994andshallapply toinvestment expenses
made onandafter1January 1994.
3. Laws, regulations and/or other legal instruments under which thesubsidies aregranted
TheprogrammewasestablishedbytheOrdinanceoftheCouncilofMinistersof25January1994
onInvestment TaxRebates (Official Journal of1994, No.18,Item62)issued pursuant toArticle 26
section 13oftheActonIncome TaxfromNatural Persons of26July1991(Official Journal of1993,
No.90,Item416andNo134,Item646),andArticle 18section 7oftheActonIncome Taxfrom
Legal Persons of15February 1992(Official Journal of1993, No.106,Item482andNo134,Item646;
Official Journal of1994, No.1,Item2).Thesubsequent amendments havenotaltered theessential
legalandsubstantive features oftheprogramme. AnEnglish translation oftheOrdinance isattached
herewith.
4. Level(s) ofgovernment involved intheimplementation oftheprogrammes
Taxauthorities.G/SCM/N/9/POL
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5. Description ofthefinancing instrument(s) usedintheprogramme
(1) Deduction ofinvestment expenses from pre-tax income available totax-payers who
arenatural persons, legal persons ororganizations without legal personality andwhocarry outor
undertake economic activity orspecial types ofagricultural production, except partnerships, registered
partnerships andlimited partnerships.
(2) Reduction oflump-sum income taxfrom natural persons, made bypersons subject
tothistaxpursuant totheOrdinance oftheMinister ofFinance onLump-sum Income TaxfromNatural
Persons ’Revenues, issued on23December 1993 (Official Journal of1993 No.132,Item635and
Official Journal of1994 yearNo.15,Item52).
Paragraph 3.2oftheOrdinance provides that,ifexport receipts inafiscal yearexceed 50per
centofthetotalvolume ofrevenues oraregreater thantheequivalent ofECU10million (ECU 8million
from1January 1995), thetaxpayer qualifies fordeduction fromincome subject totaxation investment
expenses representing upto50percentofthevalue ofsuchexport earnings. Subject totheseprovisions,
eligible taxpayers mayreduce alump-sum income taxbythetotalamount orpartofinvestment expenses
upto60percentoftheamount oftaxbefore reduction.
6. Indication totheextent possible atthetimeofthenotification ofwhen theprogramme willbe
phased outorhowitwillbebrought intoconformity withArticle 3within aperiod ofseven
years fromthedateofentry intoforce oftheWTO Agreement
Noexplicit time-limit isattached tothese subsidies. Atthetimeofthisnotification itisnot
possible toindicate precisely when andhowthisprogramme willbebrought intoconformity with
Article 3ofWTO Agreement.
II. SPECIAL ECONOMIC ZONES
Special economic zones maybeestablished within thedesignated areas ofthecountry with
aviewtoencouraging economic restructuring andpromoting localdevelopment withthehelpofsuch
legalandsystemicpolicyinstrumentswhichmaybespecificallydesignedforapplicationinsucheconomic
zones.
1. Policy objectives oftheprogramme, including, ifapplicable, anysectoral objectives
Some ofthemajor objectives oftheestablishment ofspecial economic zones maybeasfollows:
- development ofcertain types ofeconomic activity;
These types ofeconomic activities which areconsidered tobedesired foraparticular Special
Economic Zone willbegiven preferential treatment. Basically, itwillbetheactivity connected with
theprocessing industry (higher degree ofprocessing willbepromoted), specialized agriculture and
certain types ofservices (e.g.commercial, transport, storing, financial agency services);
- development ofnewtechnologies andproductions methods andtheir effective
application;
- export promotion;
- enhancement ofcompetitiveness ofproducts andservices;
- more efficient exploitation ofexisting industrial assets andofeconomic infrastructure,
- creation ofnewjobs,
- development ofnatural resources withrespect totherules ofecological balance.G/SCM/N/9/POL
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2. Dateofestablishment oftheprogramme
Thebasic legislation iscontained intheActonSpecial Economic Zones which wasenacted
on20October 1994 witheffect asfrom23December 1994 (Official Journal No.123,Item600).An
English translation oftheActisattached herewith.
Atthetimeofthisnotification onespecial economic zonecalled “EURO-PARK MIELEC ”
hasbeeninexistence. Euro-Park Mielec wasestablished on5September 1995byaRegulation ofthe
Council ofMinisters (Official Journal No.107, Item.526) .
3. Laws, regulations and/or other legal instruments under which thesubsidies aregranted
Aslisted above.
4. Level(s) ofgovernment involved intheimplementation oftheprogrammes
Theapplication forestablishing aspecial economic zonetogether withaplanforthezone
development shallbesubmitted bythelocalauthorities orother group ofinterest totheMinister of
Industry andTrade whoisresponsible forforwarding theapplication totheCouncil ofMinisters as
wellasforadraftofaregulation ontheestablishment ofthezone. TheCouncil ofMinisters issues
suchregulation asappropriate, appoints themanaging entity, specifies duration ofthezoneaswell
asconditions forbenefiting fromspecific policy instruments connected witheconomic activity carried
outinthezone. TheMinister ofIndustry andTrade invites tenders forthepurpose ofselection of
economic entities which shallbegranted permits tooperate within thezoneanddesignates amanaging
entity. Finally, theMinister ofIndustry andTrade approves by-laws ofthezoneissued bythemanaging
entity.
Themanagement ofEURO-PARK MIELEC hasbeenentrusted toAgencja Rozwoju Przemys u
S.A.(Agency forIndustrial Development, ajointstock company).
5. Description ofthefinancing instrument(s) usedintheprogramme
TheRegulation ontheSpecial Economic Zone atMielec provides interaliainparagraph 5.1
thatintheperiod of10years fromthedateofstarting economic activity intheterritory ofthezone,
butnotlonger thanuntiltheendofthe15thyearfromthedateofitsestablishment, anyentity ’sincome
earned fromeconomic activity specified inthepermit isexempted fromincome taxuptotheamount
which isequivalent tohalfoftheamount ofrevenues fromexports ofproducts orservices generated
bythisentity within thezone.
6. Indication totheextent possible atthetimeofthenotification ofwhen theprogramme willbe
phased outorhowitwillbebrought intoconformity withArticle 3within aperiod ofseven
years fromthedateofentry intoforce oftheWTO Agreement
TheSpecial Economic Zone atMielec hasbeenestablished fortheperiod of20years.
According toparagraph 5.1ofthesaidRegulation, reduction ofincome taxrelated toexports
isprovided fortheperiod of10years butnotexceeding the15thyearfromthedateoftheestablishment
ofthezone.G/SCM/N/9/POL
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III. INTEREST SUBSIDIES ONCERTAIN BANK LOANS.
1. Policy objectives oftheprogramme, including, ifapplicable, anysectoral objectives
Theprogramme isaimed atsubsidizing fromtheStateBudget preferential loans covering, inter
alia,export contracts concluded bydomestic entities. Itconcerns mainly supplies ofturn-key plants,
complete installations, construction projects, machinery, other equipment, vehicles, vessels, means
oftransportation, aswellasconstruction andinstallation services. Theamount ofsubsidies forthat
purpose isannually setintheBudget Law.
2. Dateofestablishment oftheprogramme
Theprogramme wasestablished on5January 1995andcame intoforce on19January 1995.
3. Laws, regulations and/or other legal instruments under which thesubsidies aregranted
Thelegislative basis fortheprogramme issetoutintheActonInterest Subsidies onCertain
Bank Loans adopted on5January 1995(Official Journal No.13,Item60),assubsequently amended
bytheActAmending theActonInterest Subsidies onCertain Bank Loans (Official Journal No83,
Item418of1995) andbytheOrdinance oftheCouncil ofMinisters onDetailed Rules, Scope and
Procedure forSubsidizing ofInterest onBankLoans Granted forFinancing ofExport Contracts, adopted
on13June1995(Official Journal No.83,Item421). Translations ofthefulltextsortheirsummaries
intoEnglish areattached herewith.
4. Level(s) ofgovernment involved intheimplementation oftheprogrammes
TheCouncil ofMinisters shall specify detailed rules, scope andprocedures forgranting
subsidizedloanfinancing.ThemanagementofappropriatefinancialresourcesisentrustedtotheMinister
ofForeign Economic Relations. Subsidies maybegranted, provided thatexport contracts areinsured
bytheExport Credit Insurance Corporation (Korporacja Ubezpieczen ´Kredytów Eksportowych- KUKE).
5. Description ofthefinancing instrument(s) usedintheprogramme
Pursuant toArt.4section 3,thesubsidies forexport contracts shallapply, inparticular, to:
(1) Turn-key plants, complete installations, machinery andequipment, vehicles, vessels
andother means oftransportation;
(2) Construction andinstallation services.
Subsidies maybegranted tothebankwhich provides credit foranexport contract financing.
Theminimum value ofthecontract shallbeECU100,000 andtheperiod forwhich thecredit isprovided
cannot beshorter thansixmonths andnotlonger thanseven years. Ifthecontract concerns other goods
andservices thenthecontract value shallnotbelessthanECU 0.5million. IntheBudget Lawfor
the1995 yearthetotalamount ofsubsidies onexport loaninterests wassetatPLN 20million1
(approximately US$8million) andhasnotbeenallocated uptodate.
1PLNmeans thePolish currency unitafter1January 1995. 1PLNamounts to10,000 "old" zlotys.G/SCM/N/9/POL
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Subsidizing iscalculated asadifferential between interest ontheloanandtheactual costof
theloanondomestic orforeign markets, increased byprofit margin usually charged bythebank. Such
subsidies maynotexceed one-fifth oftheactual costoftheloan, increased bythebank’sprofit margin.
Theprogramme applies toloans granted after1January 1995.
6. Indication totheextent possible atthetimeofthenotification ofwhen theprogramme willbe
phased outorhowitwillbebrought intoconformity withArticle 3within aperiod ofseven
years fromthedateofentry intoforce oftheWTO Agreement
Noexplicit time-limit isattached tothese provisions. Atthetimeofthisnotification itisnot
possible toindicate precisely when andhowthisprogramme willbebrought intoconformity with
Article 3oftheWTO Agreement.
IV. CREDIT GUARANTEE SCHEMES
1. Policy objectives oftheprogramme, including, ifapplicable, anysectoral objectives
Theprogramme isaimed atestablishing instruments which willstimulate development ofexport
ofstrategic Polish industries likeshipbuilding industry, machine tools industry, aircraft industry.
Creditguaranteeschemesarealsointendedtocreatepossibilitiestosupportprivatizationprojects
from theState Budget intheirinitial phases.
Theprovisions ofthisRegulation apply toguarantees bytheStatebudget ofcredits andloans
granted byforeign banks andinternational financial institutions.
2. Dateofestablishment oftheprogramme
Theprogramme wasestablished on19September 1995.
3. Laws, regulations and/or other legal instruments under which thesubsidies aregranted
Thescheme operates under aRegulation oftheCouncil ofMinisters onConditions and
Procedures forGranting Sureties andGuarantees ofRepayments fromtheStateBudget ofBank Loans
andFeesConnected withSureties andGuarantees, adopted on19September 1995 (Official Journal
No.114,Item549) issued under Article 23section 6oftheBudget Lawof5January 1991 (Official
Journal No.72,Item344of1993) asamended .English translation ofthisRegulation isattached.
4. Level(s) ofgovernment involved intheimplementation oftheprogrammes
Applications forgranting acredit guarantee areoriginally considered bytheMinister ofFinance
inconsultation withother relevant public bodies. Final decisions aremade bytheCouncil ofMinisters
ortheMinister ofFinance andtheadministration ofsuchdecisions isentrusted totheMinister of
Finance.
5. Description ofthefinancing instrument(s) usedintheprogramme
Theguarantees maycover repayment ofinvestment loans granted forthefollowing purposes:
(1) development andmaintenance ofinfrastructure,G/SCM/N/9/POL
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(2) environmental protection,
(3) restructuring anddevelopment ofviable economic entities which offergoodprospects
ofprofitability andcompetitiveness,
(4) short-term investments innewtechnologies which meetenvironmental standards;
(5) other projects, which: enable exports ofatleast20percentofgoods andservices;
encourage development ofnew technologies andknow-how; arelocated in
disadvantaged regions withhighstructural unemployment.
Theguarantees mayalsocover repayment ofaloangranted for:
(a) purchase ofrawmaterials orfinalinputs forproduction ofinvestment goods forexports
where thevalue ofsuchsalesexceeds ECU 10million andtheproduction cycleislonger
thansixmonths,providedthatsuchpurchasesarenotcoveredbyGovernment-supported
interest subsidies oncertain bankloans (seesection IIIabove);
(b) initiating Government-sponsored privatization programmes.
Theguarantee islimited intimeanditsmaximum rates arepre-determined. Itmay cover
upto60percentoftheutilized portion ofthecredit, including interest payments. Inparticular
circumstances, theCouncil ofMinisters maywaive thisprovision bygranting aguarantee tocover
theentire loan, together withitsassociated costs.
TheBudget Lawfor1995 specified thatsureties andcredit guarantees from theStatebudget
canbegranted uptotheamount ofPLN4billion (approximately US$1.9 billion ofwhich PLN3billion
(US$1.5billion)forforeignloans.OutofthePLN1billion(US$472million)forguaranteesondomestic
loans, theactual disbursements came toonlyPLN103.2 million (US$48.7 million) asof20November
1995. Thecorresponding figure forforeign loanguarantee disbursements wasPLN 621.3 million
(US$293.4 million) attheendofSeptember 1995.
6. Indication totheextent possible atthetimeofthenotification ofwhen theprogramme willbe
phased outorhowitwillbebrought intoconformity withArticle 3within aperiod ofseven
years fromthedateofentry intoforce oftheWTO Agreement
Noexplicit time-limit isattached tothese subsidies. Atthetimeofthisnotification itisnot
possible toindicate precisely when andhowthisprogramme willbebrought intoconformity with
Article 3ofWTO Agreement.
V. EXPORT INSURANCE GUARANTEES BYTHE STATE TREASURY.
1. Policy objectives oftheprogramme, including, ifapplicable, anysectoral objectives
Thepurpose oftheprogramme istoencourage export-oriented entrepreneurial decisions by
limiting commercial andnon-commercial risksassociated withexport contracts, bothbefore andafter
thedelivery ofgoods andservices. Themajor categories ofsuchrisksinvolve political risks, force
majeure, anddefault incontract payments.G/SCM/N/9/POL
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2. Dateofestablishment oftheprogramme
Theprogramme wasestablished on7July1994 andfinancial sources foritsimplementation
arespecified intheBudget Lawforeachyear.
3. Laws, regulations and/or other legal instruments under which thesubsidies aregranted
Theprogramme operates onthebasisoftheActonExport Contract Insurance Guarantees by
theStateTreasury ofJuly1994 (Official Journal No.86,Item398), thefulltextofwhich isattached
herewith inEnglish. Thislegislation issupplemented bytheOrdinance oftheCouncil ofMinisters
of23June1995onconditions andprocedures forgranting, bytheStateTreasury, ofexport guarantees
negotiated bytheExport Credit Insurance Corporation andongranting andredemption ofloans(Official
Journal No.88,Item440).Further provisions arecontained indecisions andguidelines issued bythe
Council ofMinisters on16May1995 ontypes ofcontracts which maybecovered bytheinsurance
andonprocedures fordetermination ofinsurance rates(Official Journal No.56,Item294).
Itisattached herewith anEnglish translation ofthefollowing acts:
(1) Actof5January 1995 onSubsidies totheInterest from Some Banks Credits;
(2) Regulation bytheCouncil ofMinisters of13June1994 onthedetailed principles,
scope andprocedures forgranting subsidies totheinterest frombankcredits allocated
tothefinancing exports contracts;
(3) Actof7July1994oninsurance ofexports contracts guaranteed bytheStateTreasury;
(4) Regulation bytheCouncil ofMinisters of16May1995 onthedetermination forthe
yearof1995 ofthetypes ofcontracts which maybeinsured bytheCorporation for
Insurance ofExports Credits (Korporacja Ubezpieczen ´Kredytów Eksportowych S.A.)
andtheguidelines concerning thesetting upofinsurance ratesforexports contracts;
(5) Actof20October 1994 onSpecial Economic Zones;
andsummaries ofthefollowing Acts:
(1) Regulation bytheCouncil ofMinisters of23June 1995 ontheConditions and
Procedures forGranting bytheMinister ofFinance, inthename oftheStateTreasury,
ofGuarantees ofBank Credits raised bytheCorporation ofExports Credit Insurance
(Korporacja Ubezpieczen ´Kredytów Eksportowych S.A.)andGranting andRedemption
ofLoans from State Budget Resources;
(2) Regulation bytheCouncil ofMinistry of25January 1994 onthedeductions from
taxable income ofinvestment expenditures andincome taxreductions;
(3) Regulation bytheCouncil ofMinistry of19September 1995 ontheConditions and
Procedures forGranting Guarantees andGuaranteeing theRepayment ofBank Credits
fromStateBudget Resources andCharges Resulting fromGuarantees andWarrantees
Granted.G/SCM/N/9/POL
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(3) Regulation bytheCouncil ofMinistry of19September 1995 ontheConditions and
Procedures forGranting Guarantees andGuaranteeing theRepayment ofBank Credits
fromStateBudget Resources andCharges Resulting fromGuarantees andWarrantees
Granted.
4. Level(s) ofgovernment involved intheimplementation oftheprogrammes
TheinsuranceofexportcontractsunderthisschemewasentrustedtotheExportCreditInsurance
Corporation (Korporacja Ubezpieczen ´Kredytów Eksportowych KUKE) ,ajointstock company owned
bytheState Treasury.
TheParliament specifies annually intheBudget Lawalimituptowhich export contracts may
beinsured.
TheMinister ofFinance inagreement withtheMinister ofForeign Economic Relations shall
publish acountry classification bylevelofrisks. TheMinister ofFinance together withtheMinister
ofForeign Economic Relations andtheMinister ofIndustry andTrade shallalsodetermine theminimum
percentage share ofdomestic inputs which qualifies theproduct asbeing ofdomestic origin.
5. Description ofthefinancing instrument(s) usedintheprogramme
Coverage ofexport risksisprovided through asurety granted bytheMinister ofFinance on
behalf oftheState Treasury onbank loans negotiated byKUKE, andbydirect loans granted from
theState Budget.
Thelimit ofexport contracts insurance fortheyear 1994 wassetattheamount of
PLN2.5million. IntheBudget Lawforyear1995 thelimitofexport contracts insurance wasset
attheamount ofPLN3.1million (US$ 1.5million) andthevolume oftheloans -atPLN40million.
6. Indication totheextent possible atthetimeofthenotification ofwhen theprogramme willbe
phased outorhowitwillbebrought intoconformity withArticle 3within aperiod ofseven
years fromthedateofentry intoforce oftheWTO Agreement
Noexplicit time-limit isattached tothese subsidies. Atthetimeofthisnotification itisnot
possible toindicate precisely when andhowthisprogramme willbebrought intoconformity with
Article 3ofWTO Agreement.G/SCM/N/9/POL
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THE LAW
of5January 1995
onsubsidies totheinterest from some bank credits
Article 1.1.TheLawdetermines theprinciples ofapplying subsidies fromStateBudget resources
totheinterest from bank credits foragricultural purposes, financing exports contracts andthe
procurement andstorage ofseafishstocks.
2. Thesubsidies referred tounder Item1arerealised from theState Budget resources,
determined intheBudget Law.
Article 2. Wherever theLawmentions adomestic business entity, itmeans aphysical person,
alegalperson andalsoanorganisational unitwithout legalpersonality, residing orbased within the
territory oftheRepublic ofPoland andconducting business activities.
Article 3. 1. Thesubsidies totheinterest frombankcredits fordomestic business entities
aregranted from theState Budget resources forthefollowing purposes:
(1) agricultural;
(2) theprocurement andstorage ofseafishstocks;
(3) financing exports contracts.
2. Thesubsidies totheinterest frombankcredits foragricultural purposes, fordomestic business
entities conducting agricultural production aregranted onequal principles, regardless oftheareaof
cultivated landandtheform ofitsownership.
Article 4. 1. ThecreditsforagriculturalpurposesreferredtounderArticle3,Item1Section1
aredefined ascredits:
(i) fordomestic business entities conducting agricultural production andareallocated to:
(a) thepurchase oftangible current assets foragricultural production,
(b) thepurchase oftangible current assets fortheproduction offoodbyecological
methods andadjustment ofagricultural facilities tosuchproduction,
(c) biological progress inagriculture,
(ii) fordomestic business entities specialising intheprocessing orstorage ofprocured
agricultural produce, andareallocated to:
(a) procurement ofagricultural produce from domestic producers,
(b) storage ofagricultural products andstocks ofprocessed goods made fromsuch
products andstocks ofsemi-finished fruitandvegetable products.G/SCM/N/9/POL
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withtheexclusion oftobacco andtobacco products andalcoholic beverages andrawmaterials forthe
manufacture ofalcoholic beverages.
2. Theprocurement andstorage offishreferred tounder Article 3Item1Section 2,applies
tofishcaught orprocured bythedomestic business entities.
3. Financing exports contracts, referred tounder Article 3,Item1Section 3,applies in
particular tothecontracts forthedelivery of:
(1) finished facilities, machines, appliances, vehicles, floating vessels, transportation
appliances,
(2) construction andassembly services.
Article 5. Thesubsidies tocredit interest beapplied forperiod nolonger than:
(1) 12months forcredits forpurposes specified under Article 3Item1Sections wand2,
(2) 84months forcredits forpurposes specified under Article 3Item1Section 3,
(3) ***thedayofreceiving thecredit
Article 6. 1. Credits forpurposes specified under Article 3Item1maybeencompassed
withthesubsidy from State Budget resources iftheirannual interest ratedoesnotexceed 1.2ofthe
rediscount credit interest rate.
2. thesubsidies referred tounder Article 3Item1Sections 1and2maybeapplied to
credits withtheannual interest fortheborrower:
(1) notexceeding 0.4ofthediscount credit interest rateandnotlower than4percent
annually -forthepurposes referred tounder Article 4,Item1,Section 4,
(2) notexceeding 0.7oftherediscount credit interest rateandnotlower than7percent
annually -forthepurposes referred tounder Article 3,Item1Section 2andArticle 4
Item1Section 2.
3. Thetotalamount ofcredit encompassed withthesubsidies fromStateBudget forthe
purposes referred tounder Article 4Item1Section 1withreservation toItem4cannot theequivalent
of6q.ofryeper1hectare ofcultivated land, inaccordance withtheprices adopted forthepurpose
ofcalculating theagricultural tax.
4. TheCouncil ofMinisters maybywayofaRegulation increase theamount ofcredit
referred tounder Item3totheequivalent of10qofryeper1hectare ofcultivated land, inaccordance
withtheprices adopted forthepurpose ofcalculating theagricultural tax.
5. Thesubsidies fromStateBudget resources tothecredits forpurposes referred tounder
Article 3Item1Sections 1and2constitute partoftheinterest payable tobanks, equivalent tothe
difference between theinterest rateofsuchcredits, determined inItem1andtheborrower ’sinterest
rate,determined inItem2.G/SCM/N/9/POL
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6. ThesubsidiesreferredtounderArticle3Item1Section3maybeappliedontheprinciple
ofcompensating thecreditor banks thedifference between thecredit interest rateandthecostofits
acquisition bythebankonthedomestic orforeign market, increased bythebankmargin.
7. Thesubsidies from State Budget resources ofcredits forpurposes referred tounder
Article 3Item1Section 3maybegranted totheamount notexceeding 0.2percentofthecostofcredit
acquisition, increased bythebankmargin, withreservation toItem1.
Article 7. Thesubsidies fromStateBudget resources tocredit interest maybegranted under the
condition that:
(1) theutilisation ofatleast80percentofthecredit forprocurement forthepurposes
referred tounder Article 4Item1Section 1isdocumented,
(2) contracts referred tounder Article 4Item3areinsured intheCorporation forInsurance
ofExports Credits.
Article 8. TheCouncil ofMinisters shalldetermine bywayofaRegulation thedetailed principles,
scope andprocedures frogranting subsidies tocredit interest, referred tounder Article 3.
Article 9. 1. Theresources forthesubsidies tocredit interest referred to:
(1) inArticle 3Item1Section 1-aregranted bytheMinister ofAgriculture andFood
Economy,
(2) inArticle 3Item1Section 2-aregranted bytheMinister ofTransportation and
Maritime Economy,
(3) inArticle 3Item1Section 3-aregranted bytheMinister forForeign Economic Co-
operation.
2. Theactivities associated withgranting thesubsidies tobankcredit interest maybeentrusted
bywayofacontract tolegalpersons appointed byvirtue ofaLawandsupervised byministers referred
tounder Item1orbanks.
Article 10. 1. TheLawisapplicable tocredits granted from thedayof1January 1995.
2. Thesubsidies tointerest frombankcredits granted untilthedayof31December 1994
aresubject toprovisions binding inthisscope before theenacting ofthisLaw.
Article 11. TheLawshallcomeintoforce14daysfollowingthedateofitsannouncement,excluding
theprovisions under Article 10Item1which shallcome intoforce onthedayoftheannouncement
withforce from thedayof1January 1995.
L.Waesa
President oftheRepublic ofPolandG/SCM/N/9/POL
Page12
REGULATION BYTHE COUNCIL OFMINISTERS
of13June1995
onthedetailed principles, scope andprocedures forgranting subsidies totheinterest from
bank credits allocated tofinancing exports contracts
Byvirtue Article 8oftheLawof5January 1995 onsubsidies totheinterest fromsome bank
credits (Dz.U.No.13,Item60andNo.83,Item418)itishereby declared asfollows:
§1. 1. Thesubsidy totheinterest frombankcredit raised forfinancing exports credit
maybegranted iftheobjective ofsuchcontracts isthedeliver of:
(1) turnkey facilities,
(2) vehicles, aircraft, floating vessels andtransportation facilities,
(3) machines, appliances andelectrical equipment,
(4) instruments, tools andmeasurement apparatus,
(5) construction/ assembly andtechnical services.
2. Thesubsidymaybegrantedtotheinterestofcreditsraisedforfinancingexportscontracts
forthesaleofgoods andservices other thanspecified under Item1,processed goods andservices
shallthevalue ofthecontract exceed theequivalent ofECU 0.5million.
§2. Thesubsidy maybeprovided toadomestic bank granting acredit forfinancing an
exports contract ifthecredit value amounts toatleastECU 100thousand andthematurity period is
atleast6months.
§3. 1. Thecostofacquisition ofacredit granted inthePolish orforeign currency
isadopted totheamount relevant totherediscount credit interest rateorLIBOR ratesfor6-month
deposits incredit currency, binding onthedayofsubmitting bythebankofthedocuments, referred
tounder §5Item1withreservation to§4Item3Section 4.
2. Thebankmargin forcredits referred tounder Item1isadopted at2percent.
§4. 1. Thesubsidies aregranted basing uponanagreement signed between thebank
andtheMinster ofForeign Economic Co-operation.
2. Prior tosinging theagreement, theMinister ofForeign Economic Co-operation shall
seektheopinion oftheMinister ofFinance andother relevant Ministers.
3. Theagreement determines inparticular:
(1) theperiod forwhich thesubsidy isgranted,
(2) thesubsidy amount,G/SCM/N/9/POL
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(3) thedeadlinesfortransferringthesubsidytothebankaccount,inaccordancewithinterest
ratepayment schedule determined inthecredit agreement,
(4) thevalue ofthesubsidy inthesubsequent fiscal year,
(5) theproceedings incasefalling intoarrears withthepayment ofinterest andinother
events oftransgressing bytheborrower ofconditions ofthecredit agreement orits
termination,
(6) theproceedings forinforming theMinister ofForeign Economic Co-operation onthe
realisation ofthecredit agreement andutilisation bythebankofresources acquired
assubsidies.
§5. 1. Thecontract maybesigned following thepresentation bythebankof:
(1) thejustification ofthenecessity togrant thesubsidy,
(2) copyoftheexports contract,
(3) copyofthecredit agreement,
(4) copyofthecontract forexports contract insurance bytheCorporation forInsurance
ofExports Credits (Korporacja Ubezpieczen ´Kredytów Eksportowych S.A.),
(5) justification ofthefeasibility offinancing theexports contract withtheuseofabank
credit.
2. TheMinister ofForeign Economic Co-operation maydemand additional documents
andinformation tobepresented.
§6. Theamountspayabletothebankduetoarrearsinthepaymentofinterestbytheborrower
cannot becovered from theresources allocated tosubsidies.
§7. TheRegulation shallcome intoforce 14daysafterthedateofitsannouncement.
J.Oleksy
Chairman oftheCouncil ofMinistersG/SCM/N/9/POL
Page14
THE LAW
of7July1994
oninsurance ofexports contracts guaranteed bytheState Treasury
Chapter 1
General Provisions
Article 1.1.TheLawdetermines theprinciples ofinsuring exports contracts, inthecaseofwhich
thepayment ofdamages isensured bywayoftransferring totheinsurer bytheStateTreasury ofessential
resources forthatpurpose.
2. Theobjective ofinsurance provided under Item1,hereinafter referred toasinsurance
ofexports contracts istoprovide thedomestic business entities protection inthecourse ofexecution
ofanexports contract from losses which maybeincurred:
(1) before thegoods were dispatched orservices rendered;
(2) afterthegoods were dispatched orservices rendered.
Article 2.1.Theinsurance ofexports contracts covers thelosses incurred bytheinsurer incase
ofinability toexecute theexports contract orinresult tothenon-execution orincorrect execution of
thecontract byaforeign contractor, shallsuchlosses result from events defined asnon-commercial
risk,i.e.:
(1) political risks;
(2) disaster risks;
(3) risksofpersistent delays inexecuting payment liabilities byaforeign public debtor,
i.e.anentity which isnotsubject tothebankruptcy lawsbinding inthedebtor ’sState;
2. Political riskcovers:
(1) announcement ofgeneral payment moratorium bytheGovernment ofthedebtor ’sState
ortheState participating intheremittance ofsuchpayments,
(2) theissuance oramendment oflegalactsordecision bytheGovernment oranyother
State organ ofthedebtor ’sState orathird State, which participates inthe
implementation ofthecontract, rendering theexecution ofthecontract ortheprovision
ofservices ordered impossible,
(3) introduction ofabanontransferring thepayments inthepayment currency oraban
onexchanging thenational currency intothepayment currency,G/SCM/N/9/POL
Page15
(4) arefusal tomake thepayment forreasons notassociated withtheexecution ofthe
contract shallthedebtor betheState, apublic debtor oranyother debtor granted State
guarantee,
(5) legalregulations ordecisions taken bytheGovernment oftheRepublic ofPoland in
thescope offoreign trade, which render thecontract execution orprovision ofthe
services ordered impossible.
(6) thebreakout beyond theborders oftheRepublic ofPoland ofwarfare, insurrection,
revolution, public unrest, prolonged massive strikes,
(7) announcement ofnationalisation acts.
3. Thedisaster riskcovers thefollowing natural disasters:
(1) earthquakes,
(2) volcano eruptions,
(3) cyclones,
(4) typhoon,
(5) floods,
(6) rapid seatides,
(7) firesofcatastrophic proportions.
4. Theriskofpersistent delays means adelay inpayment byaforeign contractor byatleasttwo
months from thelapse ofapayment deadline defined inthecontract.
Article 3. 1. Insuranceofexportscontractsmayalsocovertherisksofcommercialcharacter,
shallthecontract beentered onconditions ofacredit formore thanayear.
2. Theinsurance ofexports contracts inthescope ofcommercial riskcovers theconfirmed
insolvency orpersistent delay ofaforeign contractor.
Article 4. Under situations justified bysignificant economic interest, theCouncil ofMinisters
may, bywayofaResolution, issue itsconsent toinsure theexports contracts from other risksthan
specified under Articles 2and3.
Chapter 2
Detailed Provisions
Article 5. 1. Theinsurance ofexports contracts onconditions determined under thisLaw
isentrusted intheKorporacja Ubezpieczeñ Kredytów Eksportowych, S.A.(Corporation forExport
Credits Insurance Shareholding Co.), hereinafter referred toastheCorporation.G/SCM/N/9/POL
Page16
2. TheBudget Law, withreservation ofArticle 18,determines thelimitvalue uptowhich exports
contracts canbeinsured inagiven year, aswellasthepayments from theState Budget, envisaged
incaseof:
(1) guarantees ofcredits raised bytheCorporation asprovided under Article 13,Item
2,section 1,
(2) loans granted theCorporation bytheStateBudget, asprovided under Article 13,Item
2section 2,
3. TheCorporation shallinsure theexports contracts initsownname.
Article 6. Thefollowing entities areentitled totakeadvantage ofinsurance ofexports contracts,
withreservation toArticle 5,Item2:
(1) domestic -asprovided under foreign exchange laws-business entities exporting
domestic goods andservices,
(2) entities financing exports contracts, executed bytheentities specified under section 1.
Article 7. TheCouncil ofMinisters shall byNovember 30eachyeardetermine thedetailed
principles ofoperation oftheCorporation forthecoming yearinthescope covered bythisLaw,
concerning inparticular:
(1) types ofcontracts which maybecovered byinsurance from non-commercial risk,
(2) types ofcontracts which maybecovered withinsurance from commercial risk,
(3) guidelines concerning theprinciples ofdetermining thecharges forinsurance ofexports
contracts.
Article 8. 1. TheMinisterofFinanceinagreementwiththeMinisterofForeignCo-operation
shalldetermine bywayofaRegulation aclassification tableofStates depending upon thedegree of
riskspecified under Articles 2and3.
2. TheMinister ofFinance inagreement withtheMinister ofForeign Co-operation and
theMinister ofIndustry andTrade shalldetermine bywayofaRegulation theminimum percentage
share ofcomponents ofdomestic origin intheexported finalproduct, enabling suchproduct tobe
classified asdomestic-made.
Article 9. 1. Thegeneral conditions ofinsuring exports contracts shallbesubject toapproval
bytheMinister ofFinance following amotion filedbytheCorporation.
2. Theinsurance ratesforinsuring exports contracts, determined bytheCorporation basing upon
theguidelines bytheCouncil ofMinisters shallbesubject toapproval bytheMinister ofFinance,
withaprior opinion issued bytheMinister ofForeign Economic Co-operation.
Article 10. 1. Thefinancial settlements associated withinsuring exports contracts shallbe
conducted bytheCorporation onaseparate bankaccount.
2. Thefollowing Items shallbecollected ontheaccount specified under Item1:G/SCM/N/9/POL
Page17
(1) premiums forinsurance ofexports contracts,
(2) amounts raised inresult tovindication andregress proceedings,
(3) interest from funds collected ontheabove account,
(4) financial resources specified under Article 13,Item2,
(5) interest from deposits offreefunds,
(6) funds transferred bytheMinister ofFinance, inaccordance withArticle 19.
3. Theresources ccollected onaseparate bankaccount donotconstitute theCorporation revenues
asdefined under theregulations onincome taxfrom legalpersons.
4. TheCorporation maywiththepermission oftheMinister ofFinance deposit thefreefunds,
thefunds acquired from therevenues from suchdeposits shallbedeposited ontheaccount specified
under Item1.
5. Surplus resources ontheaccount specified under Item1shallbymotion filedbetheMinister
ofFinance betransferred totheState Budget.
6. Shall theCorporation beannounced insolvent, thefinancial resources gathered ontheaccount
specified under Item1shallnotbeincluded intheestate inbankruptcy, suchresources shallbeallocated
bytheMinister ofFinance tothecoverage ofcontracts forinsurance ofexports contracts signed by
theCorporation, andsurplus funds shallbetransferred totheState Budget.
Article 11. 1 Intheeventoflossescoveredbytheinsurance,theinsurerisobligatedtoprovide
theCorporation without anyunjustified delays anyinformation andpresent thedocuments andother
evidence necessary todetermine theconditions under which thelosses havebeenincurred andthescope
ofthelosses.
2. Shall therebeanyreservations whether thelosses incurred resulted fromrisksspecified under
Articles 2to4,theresponsibility forverify suchfactsisvested intheinsurer.
Article 12. 1 With themoment ofpayment ofinsurance damages, allliabilities andother
rights vested intheinsurer withregard totheforeign contractor oritsguarantors shallbetransferred
totheCorporation byvirtue ofinability toexecute theexports contract andthelossofamounts due,
resulting from theexecution oftheexports contract orgranting ofacredit foritsimplementation.
2. TheinsurerisobligatedtoconveytotheCorporationthedocumentsandinformationandperform
other actions necessary foreffective execution bytheCorporation ofrights, specified under Item1.
3. Therelinquishment bytheinsurer without theagreement oftheCorporation ofliabilities and
rights specified under Item1relieves theCorporation from theobligation toremit thedamages.
Article 13. 1. Thepayment ofdamages resulting fromcontracts ontheinsurance ofexports
contracts shallbemade from theaccount specified under Article 10,Item1.
2. Thepayment ofdamages bytheCorporation isguaranteed bytheState Treasury bywayof:G/SCM/N/9/POL
Page18
(1) guarantee bytheMinister ofFinance inthename oftheStateTreasury ofabankcredit
raised bytheCorporation,
(2) granting loans from theState Budget resources.
3. TheMinister ofFinance mayinparticularly justified cases write-off theloanspecified under
Item2,section 2.
4. Theguarantees, specified under Item2,section 1arenotsubject toArticle 23oftheLawof
5January 1991 -TheBudget Law(Dz.U.1993, No.72,Item344and1994, No.76,Item344).
5. TheCouncil ofMinisters may, bywayofaRegulation, determine theconditions andmode
ofgranting guarantees aswellasgranting andwriting-off theloans specified under Items 2and3.
Article 14. Forrunning theinsurance activities provided under thisLawtheCorporation isentitled
toacommission. Thecommission amount andfinancing procedures aredetermined inthecontract
between theMinister ofFinance andtheCorporation.
Article 15. 1. Thesupervision overtheCorporation activities inthescope ofinsurance of
exports contracts shallbeexecuted bytheMinister ofFinance onprinciples identified under thisLaw.
2. Theprocedure forexecuting thesupervision specified under Item1shallbedetermined by
abookofregulations, elaborated bytheMinister ofFinance andapproved bytheCouncil ofMinisters.
Article 16. 1. TheCorporation shallsubmit periodical reports onthebalance oftheaccount
defined under Article 10,Item1,theinsurance ofexports contracts entered andthedamages remitted.
(1) quarterly reports -totheMinister ofFinance andtheMinister ofForeign Economic
Co-operation,
(2) annual reports -totheCouncil ofMinisters, uponacquisition ofopinion bytheMinister
ofFinance andtheMinister ofForeign Economic Co-operation.
2. Thescope, formanddeadlines forsubmitting thereports andcontrolling theirintegrity shall
bedetermined bywayofaResolution bytheMinister ofFinance, inagreement withtheMinister of
Foreign Economic Co-operation.
Chapter 3
Transitional andFinal Provisions
Article 17. Thecontracts oninsurance ofexports contracts governed bythisLawarenotsubject
tothefollowing regulations:
(1) Article 807,§1,Article 810andArticle 811oftheCivil Code,
(2) theLawof28July1990onInsurance Activity (Dz.U.NO.59,Item344;1993No.5,
Item21;No.44,Item201and1994 No.4,Item17).
Article 18. 1. Thelimit forinsurance ofexports contracts fortheyear1994 ishereby
determined onthelevelof25trillion zlotys.G/SCM/N/9/POL
Page19
2. TheCorporation shalltransfer thefunds acquired from theactivities hitherto conducted, in
agreement withtheMinister ofFinance, activities inthefieldofinsurance ofexports contracts from
non-commercial risktotheaccount specified under Article 10,Item1.
Article 19. TheMinister ofFinance mayconvey totheCorporation theresources athisdisposal
bydeedofmultilateral agreements signed withtheparticipating States ofthePolish Stabilisation Fund.
Article 20. TheMinister ofFinance mayconvey totheCorporation, toaseparate account, the
resources acquired fromtheEuropean Union orother sources forsupporting exports tothedeveloping
States, allocated tofinancing exports undertakings inaccordance withprinciples established bythe
Government oftheRepublic ofPoland andtheDonor.
Article 21. TheLawshallcome intoforce 14daysfollowing thedateofitsannouncement.
L.Waesa
President oftheRepublic ofPolandG/SCM/N/9/POL
Page20
REGULATION BYTHE COUNCIL OFMINISTERS
of16May1995
onthedetermination fortheyearof1995 ofthetypes ofcontracts which maybeinsured by
theCorporation forInsurance ofExports Credits (Korporacja Ubezpieczen ´Kredytów
Eksportowych S.A.) andtheguidelines concerning thesetting upofinsurance rates for
exports contracts.
Byvirtue Article 7oftheLawof7July1994ontheinsurance ofexports contracts guaranteed
bytheState Treasury (Dz.U.No.86,Item398)itishereby declared asfollows:
§1. Theobject oftheinsurance islimited tocontracts, thepayments forwhich havebeen
determinedinthefollowingexchangeablecurrencies:USdollars,Canadiandollars,Portugueseescudos,
Dutch florins, Belgian francs, French francs, Swiss francs, British pounds sterling, Japanese yen,Danish
crowns,Norwegiancrowns,Swedishcrowns,Italianlira,Finnishmarks,Germanmarks,Spanishpesetas,
Austrian shillings andECU andSDR.
§2. 1. Theexports contracts entered onconditions ofacredit foroneyearareinsured
from non-commercial riskintheform ofaturnover orindividual insurance policy.
2. Insurance intheform ofaturnover policy isbased ongranting insurance protection
toallorthemajorityofexportscontractsofadomesticbusinessentity,realisedwithinthepre-determined
limits.
3. Insurance intheformofanindividual policy isbased ongranting insurance protection
toindividual exports contracts.
§3. 1. Incaseofexports contracts defined under §2Item1,theriskemerging prior
tothedispatch ofgoods orfollowing thecompletion ofexecution ofservices, i.e.theproduction risk
isinsured against intheform ofanindividual policy.
2. Theriskemergingfollowingthedispatchofgoodsorcompletionofexecutionofservices,
i.e.thecredit riskisinsured against intheform ofaturnover policy.
3. Incaseofrealisation ofindividual exports contracts, theriskreferred tounder Item
2canalsobeinsured intheform ofanindividual policy.
§4. 1. Entitled toinsurance aretheexports contracts referred tounder §2Item1,
payable toanopen account, bywayofdocument collection andaletter ofcredit notconfirmed by
aPolish bank.
2. TheCorporation, depending ontheriskassessment, mayguarantee thecoverage of
upto90percentofthevalue ofthecontract insured.
§5. 1. Theexports contracts signed ontheconditions ofacredit foroveroneyear
areinsured against commercial ornon-commercial riskintheform ofanindividual policy.
2. Incaseofinsuring anexports contract:G/SCM/N/9/POL
Page21
(1) financed onconditions ofacredit forthebuyer -theCorporation shallissuethepolicy
tothefinancing bank, withthecoverage ofthecredit riskonly,
(2) financed within thesupplier ’scredit -theCorporation shallissueapolicy encompassing
theinsurance against credit riskand,ifneeded, apolicy covering theinsurance against
production risk.
3. Incaseofacontract referred tounder Item2Section 1,theCorporation shall, depending
uponriskassessment, guarantee thecoverage ofupto95percentagainst bothcommercial- andnon-
commercial risk.
4. Incaseofacontract referred tounder Item2Section 2,theCorporation shall, depending
upon riskassessment, guarantee thecoverage of:
(1) upto90percentagainst non-commercial risk,
(2) upto85percentagainst commercial risk.
§6. 1. Theinsurance ratesforexports contracts singed onconditions ofacredit for
uptooneyeararedetermined asapercentage ofcontract value anddepending upon thescope of
coverage, thestatus oftheforeign contractor andriskassessment.
2. Incaseofinsurance against production risk,theratesaredetermined withtaking into
account: thenumber ofmonths needed forcontract execution, thestatus oftheforeign contractor and
theclassification ofthecountry depending upon thedegree ofrisk.
§7. TheCorporation indetermining theratesforinsurance ofexports contracts singed on
conditions ofacredit foroveroneyearshalltakeintoaccount thescope ofinsurance coverage, the
duration oftheproduction stage orcredit maturity, thelegalstatus oftheforeign contractor, thetype
ofcoverage andclassification ofthecountry depending upon thedegree ofrisk.
§8. ThisRegulation shallcome intoforce onthedayofitsannouncement.
J.Oleksy
Chairman oftheCouncil ofMinistersG/SCM/N/9/POL
Page22
THE LAW
of20October 1994
onSpecial Economic Zones
Chapter 1
General Provisions
Article 1. TheLawdetermines theprinciples andprocedures ofestablishing Special Economic
Zones within theterritory oftheRepublic ofPoland, themanagement ofsuchZones andinparticular
theprinciples andconditions ofrunning business activity within theterritory ofsuchZones.
Article 2. ASpecial Economic Zone, hereinafter referred toasthe"Zone" isaanuninhabited
section oftheterritory oftheRepublic ofPoland, separated inaccordance withtheprovisions ofthe
Law, within theterritory ofwhich business activities canbeconducted onprinciples determined under
thisLaw.
Article 3. TheZone maybeestablished inorder toaccelerate theeconomic development ofa
partofnational territory, especially by:
(1) thedevelopment ofspecific fields ofbusiness activity,
(2) developmentofnewtechnicalandtechnologicalsolutionsandtheirutilisationinnational
economy,
(3) development ofexports,
(4) increasing thecompetitiveness ofproducts manufactured andservices rendered,
(5) utilisation oftheexisting industrial property andeconomic infrastructure,
(6) creating newjobs,
(7) utilisationofunutilizednaturalresourceswhilemaintainingtheprinciplesofpreservation
ofecological balance.
Chapter 2
Establishing theZones
Article 4. 1. CouncilofMinisters,followingamotionbytheMinisterofIndustryandTrade
shallestablish theZone bywayofaRegulation.
2. TheMinister ofIndustry andTrade shallpresent amotion specified under Item1upon
theacquisition ofanopinion ofavoivode andapermission fromtheMunicipality Council (Municipality
Councils) proper duetothelocation oftheZone.G/SCM/N/9/POL
Page23
3. TheMinister ofIndustry andTrade shallappend tothemotion specified under Item1
theassumptions fortheZone Development Plan, specified under Article 9,including inparticular the
analysis ofanticipated social andeconomic consequences ofestablishing theZone.
4. TheRegulation ontheestablishing ofaZone determines:
(1) thename, areaandborders oftheZone,
(2) thematerial scope ofbusiness activity which maybeconducted within theZone
territory, orthefields ofbusiness activity theconducting ofwhich within theterritory
oftheZone isexcluded,
(3) theZone Manager, hereinafter referred toasthe"Manager",
(4) theperiod forwhich theZone isbeing established,
(5) theexemptions andpreferences forentities running business activity within theZone
territory onprinciples determined under Article 12.
5. TheMinister ofIndustry andTrade upon themotion filedbyaproper voivode may
order himtoprepare themotion specified under Item1.
Article 5. 1. TheZone maybeestablished, withreservation toItems 2and2exclusively
within thelandplotsowned bytheManager, theStateTreasury orthemunicipality (municipalities),
anassociation ofmunicipalities orunder perpetual usufruct oftheManager.
2. TheZone mayalsobeestablished ifthepurchase bytheManger oftherights tothe
landplotspecified under Item1results fromanobligatory contract which anticipates theestablishment
oftheZone asthesolecondition ofthepurchase.
3. Under conditions justified bysignificant economic reasons, apartoftheZone may
encompass thelandplots which aretheproperty of:
(1) theState Treasury, withtheperpetual usufruct ofaperson other thantheManger -
withthepermission oftheperpetual usufruct holder,
(2) persons other thanStateTreasury, municipality andtheManager -withthepermission
oftheowner.
Chapter 3
Zone Management, Taxexemptions andPreferences
Article 6. TheManagermaybeexclusivelyashareholdingcompanyoralimitedliabilitycompany,
inrelation towhich theStateTreasury holds amajority votewhich maybecastinthecourse ofaGeneral
Assembly oraPartners ’Assembly, andisauthorised toappoint anddismiss amajority ofManagement
andSupervisory Board Members.
Article 7. 1. TheMinister ofIndustry andTrade represents theStateTreasury inthescope
ofitsrights andduties asashareholder (partner) inacompany which istheManager andacompany
established bytheState Treasury orwiththeparticipation ofState Treasury inorder toappoint its
Manager.G/SCM/N/9/POL
Page24
2. TheMinisterofIndustryandTrade,asanorganrepresentingtheStateTreasury,ensures
theparticipationofapersonappointedbythevoivodeandapersonappointedbytheMunicipalityCouncil
(shall suchperson beestablished), proper duetothelocation oftheZone, intheSupervisory Boards
ofthecompany which istheManager oftheZone. Thecomposition oftheSupervisory Board ofthe
company which istheManager mayinclude aperson indicated bytheentities running business activities
within theZone territory. Thecomposition oftheSupervisory Board ofthecompany which isthe
Manager cannot include aperson which isamember ofauthorities oranemployee ofanentity running
business activities within theZone territory orremains inaneconomic relationship withsuchanentity.
Article 8. 1. Thetasks oftheManager include therunning -inaccordance withtheZone
Development Planspecified under Article 9-ofactivities aimed atdeveloping thebusiness activities
conducted within theZone territory, andinparticular of:
(1) making itpossible, basing upon acontract, forbusiness entities running business
activities within theZone territory totakeadvantage ofandutilise thecomponents of
property located within theZone territory, ofwhich theManager istheowner ora
dependent owner,
(2) managing theeconomic andtechnical infrastructure equipment andother property
components ofwhich theManager istheowner oradependent owner inamanner
facilitating therunning ofbusiness activities within theZone territory,
(3) rendering byvirtue ofacontract tobusiness entities running theiractivities within the
Zone territory ofservices andcreating conditions forrendering theservices bythird
parties,
(4) running activities promoting theundertaking ofbusiness activities within theZone.
2. TheManager maydispose ofitsownership rights totheproperty andperpetual usufruct
oflandplots located within theZone territory providing itremains inaccordance withtheZone
Development Plan, specified under Article 9.TheManager holds thepre-emption rights within the
scope ofownership andperpetual usufruct rights totherealestate located within theZone territory.
3. TheManager maycommission thirdparties toperform certain tasks, specified under
Item1.Such commissioning shallbeperformed mainly bywayofatender bid.
Article 9. 1. TheMinister ofIndustry andCommerce, bywayofaRegulation determines
theZone Development Plan.
2. TheZone Development Plan determines inparticular theobjectives behind the
establishment oftheZone andtheactivities andthetechnical andorganisational resources serving such
objectives, theduties oftheManager concerning theactions aimed atreaching theobjectives of
establishing theZone andmeeting thedeadlines forexecuting suchresponsibilities.
3. TheZone Development Plantakesintoconsideration theprovisions ofproper physical
development plans andshallremain inaccord withtheassumptions, specified under Article 4,Item3.
Article 10. 1. Themanner ofexecuting themanagement oftheZone bytheManager shall
bedetermined bytheZone Book ofRegulations.G/SCM/N/9/POL
Page25
2. TheZone Book ofRegulations shall beissued bytheManager. Theissue and
amendments intheZone Book ofRegulations issubject toapproval bytheMinister ofIndustry and
Trade.
3. TheManager shalldeliver theZoneBook ofRegulations tothebusiness entities running
theiractivities within theZone territory uponthesigning ofcontracts, specified under Article 8Item1
Sections 1and3,andannounces theBook ofRegulation inpublic.
Article 11. 1. Thebusiness entities running activities within theZone territory mayappoint
aZone Board.
2. TheZone Board maypresent opinions andmotions onissues concerning therunning
ofactivities within theZone territory anditsdevelopment.
3. Theorganisation andprocedures oftheZone Board shallbeprovided under theBook
ofRegulations developed andadopted bytheBoard.
Article 12. 1 TheincomeacquiredfrombusinessactivitiesconductedwithintheZoneterritory
basing uponapermit specified under Article 16,Item1,bylegalpersons andphysical persons running
business activities maybe,bywayofaRegulation bytheCouncil ofMinisters, fullyexempt from
theincome taxfromlegalpersons andincome taxfromphysical persons, respectively, during aperiod
equal halftheZone duration time.
2. Theincome specified under Item1,acquired inthetaxation years following thetaxation
year, inthecourse ofwhich inaccordance withItem1thefullexemption fromincome taxhasexpired,
maybebyvirtue ofaRegulation bytheCouncil ofMinisters exempt fromincome taxfortheremaining
period ofZone duration, initspartwhich doesnotexceed 50percentoftheincome.
3. Theinvestment outlays which donotconcern thepurchase offixed assets, associated
directly withbusiness activities conducted within theZoneterritory byvirtue oftheexemption specified
under Article 16,Item1,shallbeborne bybusiness entities which arenotentitled toexemption from
income tax,specified under Items 1or2,maybeincorporated intheirfullamount intothecosts of
earning revenue inthesame taxation yeartheyhavebeenexpended.
4. Thedepreciation allowance offixed assets utilised inthecourse ofrunning business activities
within theZone territory byvirtue ofapermit specified under Article 16,Item1,maybeincreased
bythebusiness entities which arenotentitled toexemption fromincome tax,specified under Items 1
or2.
5. TheCouncil ofMinisters inaRegulation specified under Article 4,Item1determines:
(1) thesubject ofbusiness activity, therunning ofwhich isthetitletoexemption from
income taxasspecified under Items 1and2,thesizeofsuchexemption, theirduration
andconditions uponthefulfilment ofwhich bythebusiness entity thedepend itsrights
tosuchexemptions,
(2) thesubject ofbusiness activities, therunning ofwhich constitutes thetitletopreferences
inthescope ofincome tax,asspecified under Items 3and4,theirduration timeand
thesizeofindices influencing theincreasing ofdepreciation allowances, specified under
Item4,anditmayalsodetermine theconditions, uponthefulfilment ofwhich bythe
business entity depend itsrights tosuchpreferences.G/SCM/N/9/POL
Page26
6. Theconditions specified under Item 5,Sections 1and2may inparticular
apply to:
(1) employmentinrunningbusinessactivitieswithintheZoneterritoryofapre-determined,
minimum number ofemployees andmaintaining atleastthislevelofemployment for
apre-determined period oftime,
(2) execution bythebusiness entity ofapermanent investment ofmanufacturing character
within theZone territory, thevalue ofwhich shallexceed apre-determined level,
(3) reaching bythebusiness entity ofapre-determined, minimum levelofrevenues from
thesales ofgoods manufactured orservices rendered within theZone territory and
maintaining them onatleastthislevelforapre-determined period oftime,
(4) reaching bythebusiness entity ofapre-determined, minimum levelofrevenues from
exportsofgoodsmanufacturedwithintheZoneterritoryorservicesrenderedforexports
andmaintaining them onatleastthislevelforapre-determined period oftime.
7. Thesubject ofbusiness activity, therunning ofwhich isthetitletotaxexemption,
specified under Items 1and2ortaxpreferences, specified under Items 3and4,cannot include the
mining ofminerals.
Article 13. Theexemptions andpreferences established bytheCouncil ofMinisters onprinciples
determined under Article 12cannot bedeteriorated, withreservation toArticle 19,within theperiod
oftimeforwhich theZone hasbeenestablished.
Article 14. Thebusiness entities entitled totaxexemptions specified under Article 12,Items 1
or2taxpreferences, specified under Article 12,Items 3and4shallsubmit declarations ontheincome
reached from thebeginning ofyearandastatement ontheincome reached during thetaxation year,
determined under theregulations onincome taxfromlegalpersons orincome taxfromphysical persons,
indicating separately, according toseparately established formula, thelevelofincome achieved from
thebusiness activity conducted within theZone territory.
Article 15. 1. Upon amotion filedbytheManager, theheadoftheregional office ofthe
general government administration proper duetothelocation oftheZone may, withthepermission
ofthevoivode, entrust theManager withtheconducting of,including theissuing offirstinstance
administrative decision, thefollowing issues falling within thescope ofconstruction lawconcerning
theZone territory issuing decisions onconstruction permits, transfer ofconstruction permits toother
persons, adjudicating ontheexpiration ofconstruction permits, accepting notices onthecompletion
ofconstruction, issuing permits fortheuseofaconstruction facility, issuing permits onchanging the
useofaconstruction facility oritspart,issuing orders forconducting aninspection ofaconstruction
facility anddemanding thepresentation ofanexpert opinion onthetechnical stateofaconstruction
facility.
2. Upon amotion filedbytheManager, theMunicipality Council proper duetotheZone
location mayauthorise theManager toissue decisions onmatters pertaining tothedetermination of
landbuilding anddevelopment conditions concerning theareas located within theZone.G/SCM/N/9/POL
Page27
Chapter 4
Permit forConducting Business Activities Within theZone Territory
Article 16. 1. Conducting business activities within theZone territory, withreservation to
Item2,requires apermission, hereinafter referred toasthe"Permit".
2. TheRegulation, specified under Article 4,Item1,maydetermine thesubject andscope
ofthebusiness activity, theconducting ofwhich within theZone territory doesnotrequire aPermit.
3. Shall theundertaking ofbusiness activity, byvirtue ofseparate regulations, require
alicense orother permission, thePermit specified under Item1willbegranted upon theacquisition
bythebusiness entity ofthelicense oranother permission.
4. TheMinister ofIndustry andTrade grants, withdraws andamends thePermit. The
withdrawal oramendment ofaPermit isperformed onconditions determined under Article 19.
5. Theproceedings onthegranting, withdrawal oramendment ofaPermit aresubject
torespective regulations onlicensing business activities, withamendments resulting from thisLaw.
6. TheMinister ofIndustry andTrade shallseektheManager ’sopinion prior toissuing
adecision onthegranting, arefusal togrant, withdrawal oramendment tothePermit.
7. ThePermit canbegranted if:
(1) thesubject ofbusiness activity, which istobeconducted within theZone territory by
thebusiness entity applying forthePermit isconsistent withthesubject ofbusiness
activity which canbeconducted within theZoneterritory, determined intheRegulation
onestablishing theZone,
(2) within theZone territory existtheconditions forrunning business activities which the
business entity applying forthePermit intends toundertake, andinparticular ifthe
scope ofintended activities isconsistent withtheZone Development Plan, specified
under Article 9,andiftheZone Manager hasatitsdisposal freeareas, facilities or
premises which areessential torunning theactivities bytheentity applying forthe
Permit,
(3) theundertaking ofactivities within theZone territory isjustified withthedegree of
contribution ofintended activities toreaching theobjectives determined within theZone
Development Plan, referred toinArticle 9.
8. ThePermit determines thesubject andconditions ofbusiness activity which istobe
conducted bythebusiness entity within theZone territory andthedeadline before thelapse ofwhich
thebusiness entity isobligated tostartwithin theZone territory theactivities determined under the
Permit.
9. ThePermit isgranted foralimited period oftime.
10. ThePermit constitutes thebasisforutilisation bythebusiness entity oftaxexemptions
ortaxpreferences determined under regulations issued basing upon Article 12Item2.G/SCM/N/9/POL
Page28
Article 17. Thedetermination ofbusiness entities which aretoreceive thePermit isconducted
bywayofatender bidornegotiations undertaken basing upon apublic invitation. Theprocedures,
principles andconditions ofthetender bidornegotiations, aswellascriteria ofassessment ofintentions
regarding theeconomic ventures tobeundertaken bybusiness entities within theZone territory are
established bytheMinister ofIndustry andTrade bywayofaRegulation, foreachZone separately.
Theconditions andcriteria ofassessment takeintoaccount inparticular thedegree towhich thesize,
subject andeconomic character oftheeconomic ventures planned bythebusiness entity within the
Zone territory andtheconditions foritsimplementation contributes toachieving theobjectives of
establishing theZone, specified intheZone Development Plan.
2. Incasesjustified bysignificant interests totheeconomy orcharacter ofbusiness activity
withintheZoneterritory,theMinisterofIndustryandTrademayrenouncethetenderbidornegotiations.
Incaseofrenouncing from thetender bidandnegotiations, theprovisions under Article 20,Item1
initspartconcerning entrusting theManager withgranting permits donotapply.
3. Inorder toaccede thetender bidornegotiations referred toinItem1itisnotnecessary
toacquire apriorlicense oranother permission specified under Article 16,Item3.Thebusiness entity
acceding thetender bidornegotiations shallpresent apromise forthelicence orapermission.
Article 18. TheMinisterofIndustryandTradeperformscontrolfunctionsoverthebusinessactivities
oftheentity granted thePermit, within thescope andonprinciples determined under theregulations
onlicensing business activities. TheLawdoesnotviolate theauthority ofproper State organs,
determined under theregulations tocontrol theactivities ofbusiness entities.
Article 19. 1. ThePermit expires when thebusiness entity within thedeadline determined
inthePermit failed toundertake within theZone thebusiness activity determined inthePermit.
2. ThePermitmaybewithdrawnoritsscopeorsubjectofactivitydeterminedinthePermit
maybelimited ifthebusiness entity:
(1) ceased toconduct business activity within theZone territory or
(2) violated theprovisions oftheforeign exchange law,theprovisions ofthecustoms law
ortheprovisions ontaxation liabilities, or
(3) lostinresult towithdrawal oramendment thelicense oranother permit required by
virtue ofseparate regulations toundertake thebusiness activity which isconducted
within theZone territory, or
(4) flagrantly transgressed theconditions determined inthePermit, or
(5) failed toremove thetransgressions revealed inthecourse oftheinspection referred
toinArticle 18,within thedeadline setinthesummons oftheMinister ofIndustry
andTrade toremove them.
3. IncasethePermit iswithdrawn, thebusiness entity losestherighttoexemptions and
preferences specified under Article 12,Items 1to4andisobligated toremit theincome taxfromlegal
persons ortheincome taxfromphysical persons, respectively, encompassed bysuchexemptions and
preferences fortheperiod fromtheemergence ofcircumstances which constitute thebasisforPermit
withdrawal.G/SCM/N/9/POL
Page29
Article 20. TheMinister ofIndustry andTrade may, bywayofaRegulation, entrust theManager
withthepowertograntinitsnamethepermitsforconductingbusinessactivitieswithintheZoneterritory
andperforming current inspections ofactivities ofbusiness activities andalsodetermine thescope of
suchinspections.
2. IncasetheManager isentrusted withconducting thecurrent inspections specified under
Item1,itisauthorised toperform theinspection activities anticipated forthelicensing organ under
theprovisions onlicensing business activities within thescope determined intheRegulation referred
toinItem1.
3. TheManager shallpromptly inform theMinister ofIndustry andTrade ontheemergence of
circumstances referred toinArticle 19,Item2andmayapply totheMinister ofIndustry andTrade
withamotion towithdraw thePermit, limititsscope orthesubject ofactivity determined inthePermit.
Chapter 5
Changes intheBinding Regulations
Transitional andFinal Provisions
Article 21. IntheLawof24March 1920 onpurchasing realestate byforeigners (Dz.U.1933,
No.24,Item202;1988, No.41,Item325and1990, No.79,Item466), Article 3aisadded with
thefollowing wording:
"Art. 3a. Thedecisionconcerningthepermissionforthepurchaseofrealestatelocatedwithintheterritory
ofaSpecial Economic Zone, established byvirtue ofseparate provisions, shall beissued within amonth from
thesubmitting ofanapplication bytheparty."
Article 22. IntheLawof20May1971-Code ofMisdemeanours (Dz.U.No.12,Item114;1981
No.24,Item124;1982 No.16,Item125;1983 No.6,Item35andNo.44Item203;1984 No.54
Item275;1985 No.14Item60andNo.23,Item100; 1986 No.39Item193No.20,Item135and
No.41,Item324;1990 No.51,Item297;No.72Item422andNo.86,Item504;1991 No.75
Item332andNo.91,Item408and1992, No.24,Item101)following Article 601Article 602isadded
inthefollowing wording:
"Art. 602. Thepersons running business activity within theterritory ofaSpecial Economic Zone without
therequired Permit, areliable toaprison sentence orafiscal penalty."
Article 23. IntheLawofJanuary 12,1991 onlocaltaxes andcharges (Dz.U.No.9,Item31,
No.101,Item444;and1992No.21,Item86)inArticle 7,Item1Section 12isadded inthefollowing
wording:
"(12) landplots, buildings andstructures located within theterritory ofaSpecial Economic Zone, theowner
orperpetual usufructuary ofwhich istheZone Manager orwhich serve thepurpose ofconducting by
virtue ofaPermit, business activities within theZone territory."
Article 24. 1. Onthedayofcoming intoforce oftheRegulation, referred toinArticle 4,
Item1,theMinister ofIndustry andTrade shallundertake theactions andauthority inrelation toa
company appointed theManager, conducted prior tothatdateinthename oftheState Treasury by
another organ ofStateadministration, providing thatthedecision concerning theaccess tothestocks
orshares owned bytheState Treasury ofsuchcompany created bytransformation ofaState-owned
enterprise byvirtue oftheLawofJuly13,1990onthePrivatisation ofState-Owned Enterprises (Dz.
U.No.51,Item298andNo.85,Item498;1991 No.60,Item253andNo.111,Item480)istakenG/SCM/N/9/POL
Page30
bytheMinister ofOwnership Transformation upon themotion filedbytheMinister ofIndustry and
Trade.
2. Thecompany created byvirtue oftheLawonPrivatisation ofState-Owned Enterprises,
appointed theManager isnotsubject toprovisions under Article 17;Article 19second sentence;
Article 23Items 1to3;Articles 24,28and29ofthelawonPrivatisation ofState-Owned Enterprises.
3. Theproper State administration organ regarding theissues oflandplotmanagement
inrelation tolandplotsowned bytheState Treasury ortheMunicipal authority withregard toland
owned bythemunicipality maybring acontribution intothecompany appointed theManager the
ownership rights tothelandplotsofwhich theperpetual usufructuary isthiscompany, orlandplots
which remained intheperpetual usufruct ofaState-owned company, liquidated inorder tobring a
contribution intheformoftheenterprise oranorganised partoftheenterprise property intothenew
company. Thecontribution intheform ofownership rights tothelandplotswhich remained inthe
perpetual usufruct ofaliquidated State-owned enterprise isconducted inagreement withtheenterprise
founding organ. Incases specified under thisItem, theperpetual usufruct rights expire atthemoment
ofcontributionoflandownershiprightstothecompanyappointedtheManager.TheMinisterofIndustry
andTrade represents theStateTreasury inthecompany appointed theManager inthescope ofrights
instocks (shares) taken overbytheStateTreasury inreturn forthelandownership rights contributed
inthemanner defined inthisItem.
Article 25. 1. TheManager isexempt from stamp taxandcourt feesdueforthepurchase
ordisposal ofrights totherealestate located within theZone territory.
2. TheCouncil ofMinisters inaRegulation referred toinArticle 4Item1mayexempt
from theincome taxfrom legalpersons theincome oftheManager initspartexpended during the
taxation yearorduring thesubsequent yearforthepurpose ofZonedevelopment, including thepurchase
bytheManager ofrealestate orotherobjects serving thepurpose ofconducting business activity within
theZone territory ormodernisation anddevelopment ofeconomic andtechnical infrastructure within
theZone territory.
Article 26. TheCouncil ofMinisters presents thePolish Parliament, theSejm theinformation on
theimplementation oftheLaw, including theexamination ofbudget execution.
Article 27. TheLawshallcomeintoforce30daysafterthedateofannouncement,withtheexclusion
ofprovisions under Article 15,which comes intoforce onthedayof1January 1995.
L.Waesa
President oftheRepublic ofPolandG/SCM/N/9/POL
Page31
REGULATION BYTHE COUNCIL OFMINISTERS
of13June1995
onthedetailed principles, scope andprocedures forgranting subsidies totheinterest from
bank credits allocated tofinancing exports contracts
Byvirtue Article 8oftheLawof5January 1995 onsubsidies totheinterest fromsome bank
credits (Dz.U.No.13,Item60andNo.83,Item418)itishereby declared asfollows:
§1. 1. Thesubsidy totheinterest frombankcredit raised forfinancing exports credit
maybegranted iftheobjective ofsuchcontracts isthedeliver of:
(1) turnkey facilities;
(2) vehicles, aircraft, floating vessels andtransportation facilities;
(3) machines, appliances andelectrical equipment;
(4) instruments, tools andmeasurement apparatus;
(5) construction/assembly andtechnical services.
2. Thesubsidy maybegranted totheinterest ofcredits raised forfinancing exports contracts
forthesaleofgoods andservices other thanspecified under Item1,processed goods andservices
shallthevalue ofthecontract exceed theequivalent ofECU 0.5million.
§2. Thesubsidy maybeprovided toadomestic bank granting acredit forfinancing anexports
contract ifthecredit value amounts toatleastECU100,000 andthematurity period isatleast6months.
§3. 1. Thecostofacquisition ofacredit granted inthePolish orforeign currency isadopted
totheamount relevant totherediscount credit interest rateorLIBOR ratesfor6-month deposits
incredit currency, binding onthedayofsubmitting bythebankofthedocuments, referred
tounder §5Item1withreservation to§4,Item3,Section 4.
2. Thebankmargin forcredits referred tounder Item1isadopted at2percent.
§4. 1. Thesubsidies aregranted based upon anagreement signed between thebankandthe
Minister ofForeign Economic Cooperation.
2. Prior tosigning theagreement, theMinister ofForeign Economic Cooperation shallseekthe
opinion oftheMinister ofFinance andother relevant Ministers.
3. Theagreement determines inparticular:
(1) theperiod forwhich thesubsidy isgranted;
(2) thesubsidy amount;G/SCM/N/9/POL
Page32
(3) thedeadlinesfortransferringthesubsidytothebankaccount,inaccordancewithinterest
ratepayment schedule determined inthecredit agreement;
(4) thevalue ofthesubsidy inthesubsequent fiscal year;
(5) theproceedings incasefalling intoarrears withthepayment ofinterest andinother
events oftransgressing bytheborrower ofconditions ofthecredit agreement orits
termination;
(6) theproceedings forinforming theMinister ofForeign Economic Cooperation onthe
realization ofthecredit agreement andutilization bythebankofresources acquired
assubsidies.
§5. 1. Thecontract maybesigned following thepresentation bythebankof:
(1) thejustification ofthenecessity togrant thesubsidy;
(2) copyoftheexports contract;
(3) copyofthecredit agreement;
(4) copyofthecontract forexports contract insurance bytheCorporation forInsurance
ofExports Credits (Korporacja Ubezpieczen ´Kredytów Eksportowych S.A.);
(5) justification ofthefeasibility offinancing theexports contract withtheuseofabank
credit.
2. TheMinister ofForeign Economic Cooperation maydemand additional documents and
information tobepresented.
§6. Theamounts payable tothebank duetoarrears inthepayment ofinterest bytheborrower
cannot becovered from theresources allocated tosubsidies.
§7. TheRegulation shallcome intoforce 14daysafterthedateofitsannouncement.
J.Oleksy
Chairman oftheCouncil ofMinistersG/SCM/N/9/POL
Page33
SUMMARY OFTHE REGULATION BYTHE COUNCIL OFMINISTERS
of23June1995
ontheconditions andprocedures forgranting bytheminister offinance, inthename ofthe
State Treasury, ofguarantees ofbank credits raised bytheCorporation ofExports Credit
Insurance (Korporacja Ubezpieczen ´Kredytów Eksportowych SpókaAkcyjna) andgranting
andredemption ofloans from state budget resources
Theregulation provides thattheMinister ofFinance guarantees inthename oftheStateTreasury
therepayment ofabankcredit, raised bytheCorporation ofExports Credit Insurance (Korporacja
Ubezpieczen ´Kredytów Eksportowych SpókaAkcyjna) forthecoverage ofdamage payments resulting
fromexports contract insurance agreements, entered bytheCorporation andcovering thelosses resulting
from events specified under theLawofJuly7,1994 onexports credits insurance guaranteed bythe
State Treasury. Such guarantees areissued foralimited period oftime.
TheCorporation maysubmit applications fortheguarantee oftherepayment ofabankcredit
onlytotheamount equivalent tothedifference between theamount oftheclaim fordamages filed
andthebalance offunds onthebankaccount, asofthedayofsubmitting theguarantee application.
Suchapplication shallcontain theinformation ontheamount ofthecredit guaranteed; thename, address
andobject ofthebusiness activity oftheinsuree towhom thedamages aretobepaid; theamount of
claims fordamages recognised bytheCorporation; theinformation ontheevent justifying thenecessity
toremit thedamages; acopy oftheinsurance contract; opinions from thestatutory organs ofthe
Corporation, concerning thesigning oftheinsurance contract; theconditional credit contract andthe
bank document, ascertaining thebalance ontheaccount asofthedayofsubmitting theclaim for
damages.
Applications found tocontain formal orlegaltransgressions aretobecorrected byorder of
theMinister ofFinance within thetimelimitof14days. Ifthetransgressions arenotremoved within
thistimelimit, theapplication willnotbeprocessed.
Theguarantee contracts aresigned bytheMinister ofFinance withthecreditor bank. The
State Treasury doesnotcharge anyfeesorcommissions resulting from theguarantee granted. The
Minister ofFinance grants theCorporation, uponitsapplication, interest-free loans fromStateBudget
resources forthecoverage ofdamage payments. Theamount ofsuchloans issubject toprovisions
under theRegulation.
Theapplications forloans aresubmitted bytheCorporation totheMinister ofFinance within
thetimelimitof14daysfromthedayoffiling theclaim forthepayment ofdamages. Suchapplications
shallcontain theinformation onthesuggested loanamount, aswellastheinformation specified under
above, withtheexception oftheconditional credit contract.
Theapplications forloans aresubject tothesame provisions concerning transgressions and
theirremoval, astheapplications forguarantees. Theloanagreements aresigned bytheMinster of
Finance withtheCorporation, andtheloanistransferred within 14daysfromthedateofsigning the
contract. TheStateTreasury doesnotcharge anyfeesorcommissions fortheloangranted. Theloans
arerepaid ininstalments, according toschedule determined intheloancontract. Theloans mayalso
beredeemed uponamotion, filedbytheCorporation when theexecution ofreceivables andother rights
vested intheCorporation prove futile orthere arenoresources available ontheaccount.G/SCM/N/9/POL
Page34
Theloanwillberedeemed totheamount ofthedifference between thedamages remitted and
theamount acquired inresult toconducting theproceedings fortherefund ofthedamages remitted.
Thedecision onredeeming theloanistaken bytheMinister ofFinance upon amotion filedbythe
Corporation. Suchmotion shallcontain adescription ofthecourse ofimplementation oftheexports
transaction andtheliquidation ofthelosses andthecourse ofproceedings. However, theloancannot
beredeemed earlier thanthree years from thedayofinitiating theproceedings inagiven case.
TheMinister ofFinance grants theguarantees andloans andredeems theloans afterseeking
theopinion oftheChairman oftheCouncil ofMinisters. Theapplication forsuchopinion isfiled
bytheMinister ofFinance notlaterthan14dayspriortothedayofitsfinalresolution andisappended
totheappropriate draftcontract. TheRegulation, signed byJózef Oleksy, Chairman oftheCouncil
ofMinisters, hascome intoforce 14daysafterthedateofitsannouncement.G/SCM/N/9/POL
Page35
SUMMARY OFTHE REGULATION BYTHE COUNCIL OFMINISTERS
of19September 1995
ontheconditions andprocedures forgranting guarantees andguaranteeing therepayment of
bank credits from State Budget resources andcharges resulting from guarantees and
warrantees granted
TheRegulation declares thatupontheapplication filedbythecreditor orthecrediting bank,
aguarantee maybegranted fromtheStateBudget resources fortherepayment oftheentire orpartial
amount ofbankcredits, raised forcertain purposes, asdefined intheRegulation. Such guarantees
canalsobegranted forrepayment oftheentire orpartial amount ofinterest from suchbankcredit.
Thepurposes, referred toabove, include thedevelopment andmaintenance ofinfrastructure;
environmental protection; supporting theadaptation anddevelopment processes inbusiness entities;
ensuring thegrowth ofprofitability andcompetitiveness; restructuring investment with short
implementation cycles, based onthelatest technological solutions andmeeting ecological requirements;
other undertakings when theimplementation oftasks financed withcredit ensures theexports sales
ofgoods andservices amounting atleastto20percentofthetotalsalesvalue, ortheimplementation
ofnewtechnical andtechnological solutions innational economy, orwhen itisconducted within regions
particularly threatened withhighstructural unemployment.
Theguarantee referred toabove canalsoencompass repayments ofcredits granted forthe
purchase ofmaterials andfinished goods fortheimplementation ofprojects aimed atmanufacturing
investment goods forexports, withtheproduct unitvalue ofoverECU 10million andtheproduction
cycleofmorethansixmonths,providingsuchpurchasesarenotfinancedwithcreditseligibletosubsidies
from State Budget byvirtue oftheLawof5January 1995 onsubsidies totheinterest from certain
bankcredits orlaunching Government privatisation programmes.
Theguarantees aregranted conditional tosigning aconditional credit agreement or,incase
ofaforeign contract, ofpresenting adraftcredit agreement, theyarelimited intimeandgranted for
specific, pre-determined amounts. Theapplications forguarantees aresubmitted totheMinister of
Finance, andshallcontain thegeneral information onthedebtor; description oftheeconomic and
financial standing ofthedebtor forthelastthree years orfortheentire period ofitsactivities shall
itbeshorter thanthree years; afeasibility study oftheinvestment programme; acashflowstatement
during theventure implementation; anopinion from thefounding organ (ifapplicable); anopinion
from theTreasury Office, proper tothedebtor; theconditional credit agreement oradraft credit
agreementincaseofforeigncredits,withthespecificationoftheamountsofsubsequentcreditinstalments
andinterest payments andthematurity date;acertificate fromtheSocial Insurance Authority (Zakad
Ubezpieczen´SpoecznychZUS)concerningthestateofthepaymentsofpremiumstotheSocialInsurance
Fund andtheLabour Fund; anopinion from thebankrunning thebasic account ofthedebtor and
thecreditor bank, andincaseofaforeign credit -bythecreditor orthenational intermediating
(servicing) bank; andanopinion fromtheCentral Planning Office forcases specified indetail under
theRegulation.
Applications filedbyamunicipality (gmina) shallcontain thegeneral information onthedebtor;
astatement ontheexecution oftheMunicipality budget fortheprevious year; aquarterly statement
ontheexecution oftheMunicipality budget inthecurrent year; information ontheMunicipality current
liabilities; anopinion fromthevoivode; anopinion fromtheregional Clearing House; anopinion from
thebankservicing theMunicipality budget; afeasibility study oftheinvestment programme; acashG/SCM/N/9/POL
Page36
flowstatement forproject implementation; aconditional credit agreement oradraftcredit agreement
incaseofforeign credits, withthespecification oftheamounts ofsubsequent credit instalments and
interest payments andthematurity date;andacertificate fromtheSocial Insurance Authority (Zakad
Ubezpieczen´SpoecznychZUS)concerningthestateofthepaymentsofpremiumstotheSocialInsurance
Fund andtheLabour Fund.
TheMinister ofFinance isauthorised tocondition theprocessing oftheapplication upon the
submission ofadditional documents andtorelieve theapplicant from theobligation tosubmit some
ofthedocuments specified under theRegulation. Theapplications forgranting theguarantees must
besubmitted inaformconsistent withthestandard adopted bytheMinister ofFinance. Incaseformal
transgressions orother faults arefound intheapplication, theapplicant must remove them within a
timelimit determined bytheMinster ofFinance, butnotshorter than30days. Theuncorrected
applications willnotbeprocessed.
Thedecision ongranting theguarantee istaken bytheMinister ofFinance afterseeking the
opinionofaproperMinisteroravoivode.TheCouncilofMinistersprocessestheapplicationspositively
opinionated bytheMinster ofFinance forthegranting ofguarantees oftherepayment ofadomestic
credit, when theamount ofcredit repayment guarantee withinterested quoted intheapplication does
exceeds Zl20million; therepayment ofaforeign credit, when theamount ofcredit repayment guarantee
withinterest exceeds ECU 7million; andtherepayment ofabankcredit forfinancing investments
which constitute theMunicipalities ’owntasks, presented bytheMunicipality ortheCreditor.
Incasetheapplication isassessed positively, andisnotreserved totheproperties oftheCouncil
ofMinisters, thecredit repayment guarantee maybegranted bytheMinister ofFinance. Theguarantees
aregranted tothelevelof60percentoftheutilised amount ofthecredit raised andtheinterest from
thatamount. Incaseofforeign credits, theguarantee mayapply totheinterest associated withthe
utilised credit amount ortheamount putatthedebtor ’sdisposal, orwithboththese amounts. In
particularly justified cases, theCouncil ofMinisters, mayguarantee therepayment oftheentire credit
amount including theinterest, andincaseofforeign credits -including alsotheother costsassociated
withthecredit. Thecontract singed withthedebtor forgranting theguarantee andtheguarantee contract
withthecreditor shallbesigned bytheMinister ofFinance, andincasewhen theguarantee isgranted
bytheCouncil ofMinisters -bytheMinister ofFinance onbehalf oftheCouncil ofMinisters.
TheMinister ofFinance promptly informs theapplicant about negative assessment ofits
application.
Theguarantee contract issigned conditional tosigning abillofexchange ordrawing anotary
actinwhich thedebtor undertakes tosubmit itselftotheexecution forthebenefit oftheStateTreasury
totheamount covered bytheguarantee orthepresentation ofanother security required bytheguarantor.
Theamounts acquired bywayofexecution proceedings aretransferred totheState Budget account
andconstitute itsincome. Acommission ischarged, calculate basing upontheamount ofcredit granted
covered bytheguarantee, totheamount of0.5percentforcredits withthematurity ofuptoone
year;1percentforcredits withthematurity period longer thanoneyear,butnotexceeding threeyears;
1.5percentforcredits withthematurity offrom three uptofiveyears; 2percentforcredits with
thematurity ofoverfiveyears.
Thecharges arecollected bywithholding appropriate amount fromthefirsttranche ofthecredit
granted bythecreditor andtransferred totheStateBudget account. Incaseofforeign credits, such
charges shallbetransferred bythecreditor through thedomestic intermediary (servicing) bank. The
charges incaseofforeign credit granted, andwiththepermission oftheMinister ofFinance alsoof
thedomestic credit mayalsoberemitted bythedebtor andtransferred totheState Budget account.
Theguarantee contract becomes valid withthecollection ofthecharge. Thecharges areregisteredG/SCM/N/9/POL
Page37
inaregister ofcharges, keptbytheMinister ofFinance, inaccordance withtheprinciples ofBudget
registers. TheRegulation declares asnullandvoidtheRegulation bytheCouncil ofMinisters of
27April 1993ontheconditions andproceedings ofgranting guarantees ofrepayment fromStateBudget
resources ofbank credits andcharges fortheguarantees granted andprovides thatapplications for
guarantees, submitted totheMinister ofFinance priortotheenacting ofthisRegulation shallbesubject
toprovisions under theRegulation. TheRegulation, signed byJózef Oleksy, Chairman oftheCouncil
ofMinisters, hascome intoforce withthedayofitsannouncement.G/SCM/N/9/POL
Page38
SUMMARY OFTHE REGULATION BYTHE COUNCIL OFMINISTERS
of25January 1994
onthedeductions from taxable income ofinvestment expenditures andincome taxreductions
TheRegulationgovernstheprinciplesandconditionsofthedeductionofinvestmentexpenditures
fromthetaxable income bythetaxpayers whoarephysical persons, legalpersons andorganisational
units without legalpersonality, conducting orundertaking business activities orspecial branches of
agricultural production, withtheexclusion ofnon-commercial, general andlimited partnerships and
reductions oflump sumincome taxfrom physical persons, remitted bypersons subject tosuchtax
basing upontheRegulation bytheMinister ofFinance of23December 1993onthelump sumincome
taxfromtherevenues ofphysical persons, withtheformer applicable tothepartners andco-mandataries
ofnon-commercial, general andlimited partnerships.
TheRegulation doesnotapply toinvestment expenditures, incurred bythetaxpayers while
eligible fordeductions andexemptions from income taxasprovided under theLawof26July1991
onincome taxfrom physical persons; theLawof15February 1992 ontheincome taxfrom legal
persons; theLawof13July1990 onprivatisation ofState-owned enterprises; theLawof14June
1991 oncompanies withparticipation offoreign capital; Regulation bytheMinister ofFinance of
18May1990ontheexemption fromtheturnover andincome taxoftaxpayers whoacquire revenues
from certain types ofnewly launched business activity; Regulation bytheMinister ofFinance of
18November 1991onexemption fromincome taxoftheincome ofbanks established byforeign persons
orwiththeparticipation offoreign capital andbranches offoreign banks; Regulation bytheCouncil
ofMinisters of22June1993 ondeductions from income ofinvestment expenditures within thearea
ofmunicipalities especially threatened withhighstructural unemployment; Regulation bytheMinister
ofFinance of6February 1989 ontheexemption from income taxoftheincome from certain types
ofbusiness activity.
Theamounts specified intheRegulation inECU areequivalent totheamount converted into
thePolish zlotywiththeuseoftheaverage currency exchange rateannounced bythePresident ofthe
National Bank ofPoland: incaseofrevenues -forthedayofacquiring therevenue, incaseof
expenditures -forthedayofactual payment oftheexpense.
TheRegulation provides thatitispossible todeduct, withreservation to§2Item3ofthe
Regulation, thefullorpartial value ofinvestment expenditures, providing thatintheyearpreceding
thefiscal yearinwhich thedeductions arebeing made, thetaxpayer hasbeenthelump sumincome
taxpayer orhasreached theincome torevenue rationotlower than4percentfrom activities inthe
fieldofprocessing agricultural andfoodproducts orrendering housing services, or8percentfrom
theremaining types ofactivities; prior tomaking eachdeduction there arenooutstanding orduetax
liabilities fromthetaxpayer which constitute theincome oftheStateBudget, social insurance premiums
orLabourFundcontributions,determinedunderseparateprovisions;andincaseofexpendituresreferred
tounder §1Item4Section 5letter from(a)to(c)and(f)and(g)oftheRegulation, these expenditures
havebeendocumented withaninvoice (simplified receipt) issued bythepayer ofthevalue added tax
whoisnoteligible todeduction byvirtue ofArticle 14oftheLawreferred toin§1Item4Section 6
oracustomsclearancedocument;samedocumentationrequirementsapplytotheexpendituresassociated
withthepurchase ofgoods andservices inorder tomanufacture inownscope orbycommission (order)
thefixed assets specified under §1,Item4,Section 5,letter (a)oftheRegulation.G/SCM/N/9/POL
Page39
Thelump sumincome tax,withreservation to§2Item3oftheRegulation, canbereduced
bythefullorpartial value ofinvestment expenditures if:intheyearpreceding thefiscal yearinwhich
thetaxreduction ismade, thetaxpayer hasbeenthelump sumincome taxpayer, orhasnotbeentaxed
withthistaxandhasreached theincome torevenue rationotlower than4percentfrom activities
inthefieldofprocessing agricultural andfoodproducts orrendering housing services, or8percent
fromtheremaining types ofactivities; theconditions referred tounder Item1Sections 2and3have
beenmet.
Thetaxpayers whostarted theiractivities inthefiscal year, withreservation to§5Item4of
theRegulation mayreduce theamount oflumpsumincome taxbythefullorpartial value ofinvestment
expenditures incurred thatyear, ordeduct thefullorpartial value ofinvestment expenditures incurred
thatyearfromthetaxable income forthisfiscal yearandthesubsequent year, ifineachofthese years
thetaxpayer hasreached theincome torevenue rationothigher than4percentfromactivities inthe
fieldofprocessing agricultural andfoodproducts orrendering housing services, or8percentfrom
theremaining types ofactivities.
Thetaxpayers specified above aresubject toprovisions under Item1Sections 2and3ofthe
Regulation, respectively. Fortaxpayers conducting business activity inthefieldofagricultural orfood
processing orrendering services inthefieldofhousing construction, incasetheratioofrevenues from
suchactivities tothetotalrevenues hasreached intheyearpreceding thefiscal yearfortaxpayers
specified under §2Items 1and2oftheRegulation orineachofthefiscal years fortaxpayers specified
under §2Item3thelevelofatleast60percent,theratioofincome torevenues entitling thetaxpayer
todeductions cannot belower than4percent. TheRegulation defines thedayofstarting thebusiness
activity asthedateofissuing thefirstinvoice (bill)following thecompletion, inaccordance withseparate
provisions, ofanentry inaproper register ofbusiness entities orregister ofbusiness activities.
Thedeductions ofexpenditures, made during thefiscal yeararetreated asequivalent tothe
deductions resulting fromdepreciation offixed assets andintangible andlegalassets (depreciation and
amortisation allowances); suchdeductions donotdecrease thebasis forcalculating thedepreciation
allowances inaccordance withprinciples determined under separate provisions. Thedepreciation
allowances forfixed assets andintangible andlegalassets specified under §1Item4Section 5,letters
from (a)to(h)oftheRegulation aremade starting from themonth succeeding themonth oftheir
commissioning, butnotlaterthanfrom thefirstdayofthefirstmonth afterthefiscal yearinwhich
thisdeduction hasbeenmade. Suchdeductions aremade untiltheendofthemonth inwhich thetotal
value ofdepreciation allowances becomes equal tothegross value intheunderstanding ofseparate
provisions. Thesumofdepreciation allowances, andtheamounts ofthedeductions made, cannot exceed
thegross value ofthefixed assets purchases ormanufactured inownscope (bycommission) andthe
intangible andlegalassets.
Thetaxpayers candeduct from thetaxable income thefullorpartial amount ofinvestment
expenditures tothelimitequivalent to25percentofsuchincome. However, ifforthefiscal year
theshare ofrevenues from exports exceeds thelimitof50percentofthetotalamount ofrevenues,
ortherevenues fromexports inthefiscal yearinwhich thetaxpayer hasbecome eligible todeductions
exceed theamount equivalent toECU 10,000,000 -thetaxpayers maydeduct fromtheirtaxable income
theinvestment expenditures uptothelimitof50percentofsuchincome. Such taxpayers arenot
subject toprovisions under §2,Item1,Section 1,letter (b),Item3Section 2andItem4ofthe
Regulation.
Thetaxpayers subject tolump sumincome taxmayreduce thistax,withreservation tothe
above, bythefullorpartial value ofinvestment expenditures, uptothelimitof30percentofthe
taxamount before thereduction. Incasethecircumstances referred tounder §3Item2oftheRegulationG/SCM/N/9/POL
Page40
arepresent, these taxpayers mayreduce thelump sumincome taxbythefullorpartial value of
investment expenditures uptothelimitof60percentofthetaxamount before thereduction.
Thedeductions, referred tounder §3oftheRegulation, canbemade bythetaxpayer when
settling thetaxliabilities fortheentire fiscal yearinwhich ithasincurred theinvestment expenditures,
butnotlaterthanbythedeadline forfiling, inaccordance withseparate provisions, ofthepreliminary
statement concerning theincome reached inthefiscal yearorthestatement ontheamount ofrevenues
reached inthefiscal year. These deductions canalsobemade bythetaxpayer asadvance payments
during theyearinthecourse ofwhich ithasincurred investment expenditures. These provisions also
apply tothepayers oflump sumtax.
Thetaxpayers, referred tounder §2Item 3oftheRegulation, whoincurred investment
expenditures prior tostarting business activities andtotheamount notlower thantheequivalent of
ECU 2,000,000, candeduct suchexpenditures fromthetaxable income reached inthethreeconsecutive
fiscal years, starting fromtheendofthefiscal yearinwhich thetaxpayer started itsbusiness activities,
totheamount of25percentofsuchincome acquired ineachofthese years. Suchtaxpayers arenot
subject totheprovisions under §2Item3Section 2oftheRegulation. Incaseofdeductions made
inaccordance withtheprinciples determined under Item4,provisions under §2Items 6to8apply
respectively, providing thatdepreciation allowances aremade starting fromthefirstdayofthemonth
oftheyearsucceeding theyearofcommissioning thefixed assets orintangible andlegalassets. In
caseofconfluence oftherights fordeductions orreductions, referred tounder §3and§5Item4,the
taxpayer isentitled toonlyonesuchright, selected bythetaxpayer.
Thetaxpayers losetherights todeductions orreductions if,before thelapse ofthree years
from theendofthefiscal yearinwhich theyhavetaken advantage ofdeductions orreductions, and
incases specified under theRegulation -inwhich theyhaveceased totakeadvantage ofdeductions
orreductions: theyfallintoarrears withpayments forsubsequent years oftaxes which constitute the
income oftheState Budget, social insurance premiums andLabour Fund contributions inthe
understanding ofseparate provisions; ortheytransfer inanyformtheownership ofproperty components
associated withthedeductions from income orreductions oftax;thisdoesnotapply tothetransfer
ofownership inresult tothetransformation ofthelegalstatus, merger orsplitting ofhitherto existing
businessentities;orthecircumstanceshaveceased,whichjustifytheclassificationoffixedassetsadopted
foruseatacharge basing upon lease orhirecontracts orcontracts ofsimilar character asproperty
components intheunderstanding ofprovisions, referred tounder §1Item4Section 5letter (g);or
theyareputinthestateofliquidation, excluding theenterprises liquidated inthemode andonprinciples
determined bytheLawof13July1990ontheprivatisation ofState-owned enterprises, oriftheyare
announced asinsolvent; ortheyreceive arefund ofinvestment expenditures inanyform.
Incasesuchcircumstances occur, thetaxpayers areobligated toincrease thetaxable income
bytheamount ofthedeductions made, therights towhich theyhavelost,andincaseofincurring
losses -todecreasing itbytheamount oflossinthesubsequent month tothemonth during which they
havelosttherights todeductions, orremit theamount ofthereduction oflump sumincome taxin
thesubsequent month tothemonth during which theyhavelosttherights tosuchreduction, within
thedeadline adopted forincome taxpayments.
TheRegulation, signed byJózef Oleksy, Chairman oftheCouncil ofMinisters, hascome into
force onthedayofitsannouncement andisapplicable toinvestment expenditures incurred from the
dayof1January 1994, andincaseoftaxpayers taking advantage ofincome taxdeductions and
exemptions byvirtue ofprovisions specified under §1Item 3oftheRegulation, toinvestment
expenditures incurred afterthetermination oftheperiod ofvalidity ofsuchdeductions andreductions.G/SCM/N/9/POL
Page41
REGULATION BYTHE COUNCIL OFMINISTERS
of23June1995
ontheconditions andprocedures forgranting bytheMinister ofFinance,
inthename oftheState Treasury, ofguarantees ofbank credits raised
bytheCorporation ofExports Credit Insurance (Korporacja
Ubezpieczen ´Kredytów Eksportowych SpókaAkcyjna) andgranting
andredemption ofloans from State Budget resources
Byvirtue ofArticle 13Item5oftheLawof7July1994 oninsurance ofexports contracts
guaranteed bytheState Treasury (Dz.U.No.86,Item398)itishereby declared asfollows:
§1. 1. TheMinister ofFinance shallguarantee inthename oftheState Treasury,
therepayment ofabank credit, raised bytheCorporation ofExports Credit Insurance (Korporacja
Ubezpieczen ´Kredytów Eksportowych SpókaAkcyjna), hereinafter referred toasthe"Corporation"
forthecoverage ofdamage payments resulting fromtheexports contract insurance agreements, entered
bytheCorporation, covering thelosses resulting from events specified under Articles 2to4ofthe
Lawof7July1994ontheexports credits insurance guaranteed bytheStateTreasury (Dz.U.No.86,
Item398), hereinafter referred toasthe"Law".
2. Theguarantees, referred tounder Item1,areissued foralimited period oftime.
§2. TheCorporation maysubmit anapplication fortheguarantee fortherepayment of
abankcredit, referred tounder §1Item1onlytotheamount equivalent tothedifference between
theamount oftheclaim fordamages filedandthebalance offunds onthebankaccount, referred to
under Article 10oftheLaw, forthedayoffiling theguarantee application.
§3. 1. Theapplication, referred tounder §2,shallcontain:
(i) information ontheamount ofthecredit guaranteed;
(ii) thename, address andobject ofthebusiness activity oftheinsuree towhom thedamages
aretobepaid;
(iii) theamount ofclaims fordamages recognized bytheCorporation;
(iv) information ontheevent justifying thenecessity toremit thedamages;
(v) acopyoftheinsurance contract;
(vi) opinions fromthestatutory organs oftheCorporation, concerning thesigning ofthe
insurance contract;
(vii) theconditional credit agreement;
(viii) abankdocument ascertaining thebalance ontheaccount, referred tounder §2,asof
thedayofsubmitting theclaim fordamages.
2. Iftheapplicationisfoundtocontainformalorlegaltransgression,theMinisterofFinance
willsummon theCorporation toremove them within thetimelimitof14days.G/SCM/N/9/POL
Page42
3. Ifthetransgressions arenotremoved within thetimelimitspecified under Item2,the
application willnotbeprocessed.
4. Theguarantee contract shallbesigned bytheMinister ofFinance withthecreditor
bank.
5. TheStateTreasuryshallnotchargeanyfeesorcommissionsresultingfromtheguarantee
granted.
§4. 1. Forthecoverage ofdamage payments, theMinister ofFinance shallgrant the
Corporation, upon itsapplication, interest-free loans from State Budget resources.
2. Thedetermination oftheamount oftheloan,referred tounder Item1,shallbesubject
toprovisions under §2.
§5. 1. Theapplications, referred tounder §4Item 1,shall besubmitted bythe
Corporation totheMinister ofFinance within thetimelimitof14daysfromthedayoffiling theclaim
forthepayment ofdamages.
2. Theapplication shallcontain:
(i) information onthesuggested loanamount:
(ii) meettheconditions specified under §3Item1,Sections 2to6and8.
3. Provisions under §3Items 2and3areapplicable, respectively intheprocessing of
theapplication referred tounder Item1.
§6. 1. Theloanagreement shall besigned bytheMinister ofFinance withthe
Corporation.
2. Thetransfer oftheloanshallbecompleted within 14daysfrom thedateofsigning
thecontract.
3. TheState Treasury shallnotcharge anyfeesorcommissions fortheloangranted.
§7. Therepayment oftheloangranted shallbeexecuted ininstalments according tothe
schedule determined intheloanagreement.
§8. 1. Theloan, referred tounder §4,mayberedeemed upon themotion filedby
theCorporation incaseof:
(1) futile execution ofaccounts receivable andother rights vested intheCorporation,
referred tounder Article 12oftheLaw;
(2) lackofresources ontheaccount, referred tounder §2.
2. Thescope ofredemption oftheloan,referred tounder Item1,constitutes thedifference
between thedamages remitted andtheamount acquired inresult toconducting theproceedings for
therefund ofthedamages remitted.G/SCM/N/9/POL
Page43
3. Thedecision onredeeming theloanistaken bytheMinister ofFinance uponamotion
filedbytheCorporation. Themotion shallcontain adescription ofthecourse ofimplementation of
theexports transaction andtheliquidation ofthelosses andthecourse ofproceedings, referred tounder
Item2.
4. Theloancannot beredeemed before thelapse ofthreeyears fromthedayofinitiating
theproceedings inagiven case, specified under Item2.
§9. TheMinister ofFinance shallgrant theguarantees, referred tounder §1,andshall
grant andredeem theloans, referred tounder §4and8,afterseeking theopinion oftheChairman
oftheCouncil ofMinisters.
2. TheMinister ofFinance shallfileamotion forexpressing theopinion, referred tounder
Item1,notlaterthan14dayspriortothedayofitsfinalresolution, appending theproper draftcontract
ontheissues referred tounder §1and4orthedecision onissued, referred tounder §8.
§10. ThisRegulation shallcome intoforce 14daysafterthedateofitsannouncement.
J.Oleksy
Chairman oftheCouncil ofMinistersG/SCM/N/9/POL
Page44
REGULATION BYTHE COUNCIL OFMINISTERS
of25January 1994
onthedeductions from taxable income ofinvestment
expenditures andincome taxreductions
Byvirtue ofArticle 26oftheLawof26July1991 onincome taxfromphysical persons Dz.
U.1993No.90,Item416andNo.134,Item646(andArticle 18Item7oftheLawofFebruary 1992
onincome taxfromlegalpersons) (Dz.U.1993, No.106,Item482andNo.134,Item646and1994,
No.1,Item2)itishereby declared asfollows:
§1. 1. Theprovisions under thisRegulation govern theprinciples andconditions of:
(1) thededuction ofinvestment expenditures from thetaxable income bythetaxpayers
who arephysical persons, legal persons andorganizational units without legal
personality, conducting orundertaking business activities orspecial branches of
agricultural production, withtheexclusion ofnon-commercial, general andlimited
partnerships;
(2) reductions oflump sumincome taxfromphysical persons, remitted bypersons subject
tosuchtaxbased upontheRegulation bytheMinister ofFinance of23December 1993
onthelump sumincome taxfromtherevenues ofphysical persons (Dz.U.No.132,
Item635and1994, No.15,Item52),
laterreferred toasthe"taxpayers".
2. Incaseofnon-commercial, general andlimited partnerships, thepartners andco-
mandataries ofsuchpartnerships areentitled tothedeductions, referred tounder Item1Section 1.
3. Theprovisions under thisRegulation arenotapplicable totheinvestment expenditures,
borne bythetaxpayers inthecourse ofaperiod oftaking advantage ofdeductions andexemptions
from income taxbased upon:
(1) Article 54Item5oftheLawof26July1991 onincome taxfrom physical persons
(Dz.U.1993, No.90,Item416andNo.134,Item646).
(2) Article 39Items 3and4oftheLawof15February 1992ontheincome taxfromlegal
persons (Dz.U.1993, No.106,Item482andNo.134Item646and1994, No.1
Item2).
(3) Article 46oftheLawof13July1990onprivatization ofstate-owned enterprises (Dz.
U.No.51,Item298and1991, No.60,Item153andNo.111,Item480).
(4) Articles 23and37oftheLawof14June1991 oncompanies withparticipation of
foreign capital (Dz.U.No.60,Item253,No.80,Item350andNo.111,Item480
and1993 No.134,Item646).
(5) Regulation bytheMinister ofFinance of18May1990 ontheexemption from the
turnover andincome taxoftaxpayers whoacquire revenues fromcertain types ofnewlyG/SCM/N/9/POL
Page45
launched business activity (Dz.U.No.35,Item203andNo.69,Item403and1991,
No.64Item276).
(6) RegulationsbytheMinisterofFinanceof18November1991onexemptionfromincome
taxoftheincome ofbanks established byforeign persons orwiththeparticipation of
foreign capital andbranches offoreign banks (Dz.U. No.110,Item477).
(7) Regulation bytheCouncil ofMinisters of22June1993 ondeductions from income
ofinvestment expenditures within theareaofmunicipalities especially threatened with
highstructural unemployment (Dz.U.No.59,Item266).
(8) Regulation bytheMinister ofFinance of6February 1989 ontheexemption from
income taxoftheincome fromcertain types ofbusiness activity (Dz.U.No.3,Item20
andNo.49,Item278and1991, No.51,Item222).
4. Theexpressions usedintheRegulation havethefollowing meanings:
(i) "revenues" -revenues determined inaccordance withArticle 14ofthelawonincome
taxfromphysical persons orArticle 12ofthelawonincome taxfromlegalpersons;
(ii) "income" -theincome determined inaccordance withArticle 24Items 1,2and4of
thelawonincome taxfrom physical persons orArticle 7Items 1to3ofthelawon
income taxfrom legalpersons;
(iii) "taxable income" -theincome before taxation, i.e.theincome determined inaccordance
withArticle 26Item1ofthelawonincome taxfromphysical persons orArticle 18
Item1ofthelawonincome taxfrom legalpersons;
(iv) "lump sumincome tax"-taxdetermined inaccordance withtheRegulation bythe
Minister ofFinance, referred tounder Item1,Section 2;
(v) "investmentexpenditures"-actuallyexecutedexpendituresinthefiscalyearnotrefunded
tothetaxpayer inanyform, decreased bytheinput value added taxandexcise tax,
shallsuchtaxes besubject tofullorpartial deduction fromtheoutput value added tax
for:
(a) purchase andassembly ofmachines andappliances, classified inaccordance
withtheClassification ofFixed Assets byTypeoftheChief Office ofStatistics
(Gowny UrzadStatystyczny GUS) intogroups 3to6and8;
(b) thepurchase, construction ordevelopment ofbuildings classified inaccordance
withtheClassification ofFixed Assets byTypeoftheChief Office ofStatistics
(GownyUrzadStatystycznyGUS)intogroup1,sub-groups10to13,sub-group
16types 166and168,sub-group 18types 180,182to185andtogroup 2,
sub-groups 20to23and25to27,essential fortheinstallation ofmachines
andappliances specified under letter (a);
(c) purchase ofthemeans oftransportation, withtheexclusion ofpassenger cars;
(d) purchase fromtheStateTreasury ofanenterprise oranorganized partofthe
enterprise property, excluding theexpenditures forthepurchase oflandplots;G/SCM/N/9/POL
Page46
(e) purchase fromtheAgricultural Property Agency oftheStateTreasury (Agencja
Wasnos´ciRolnej) ofanenterprise oranorganized partoftheenterprise
property;
(f) purchase oflicences, patents orknow-how;
(g) repayment determined intheleaseorhirecontract orinacontract ofasimilar
character ofthevalue ofcomponents ofproperty, referred tounder letters from
(a)to(f)shallsuchresources be,inaccordance withtheRegulation bythe
Minister ofFinance of6April 1993onclassifying thesubjects ofleaseorhire
contracts concerning objects orproperty rights tocomponents ofproperty of
parties tosuchcontracts (Dz.U.No.28,Item129)classified asthecomponents
oftheproperty ofthehirer, lessee oruser;
(h) creating inone'sownscope orunder commission (order) offixed assets,
specified under letters (a)and(b);
(i) purchase fromtheStateTreasury bythetaxpayers whose export revenues in
thesame fiscal yearexceed theequivalent ofECU 10,000,000 ormore than
50percentofstocks orshares inacompany;
(vi) "exports ofgoods" -exports ofgoods intheunderstanding oftheLawof8January 1993
onthevalue added taxandexcise tax(Dz.U.No.11,Item50,No.28,Item127and
No.129,Item599);
(vii) "exports ofservices" -services rendered bythetaxpayer beyond thenational borders
oftheRepublic ofPoland; classified asexports ofservices arealso,inaccordance
withtheregulations onthevalue added tax,theactivities based onproviding:
(a) international transportation services;
(b) touristservicesforincomingforeigntourists,individualandingroups,rendered
within theterritory oftheRepublic ofPoland bytaxpayers specified under
Item1;
(c) services within thecountry, shalltheybedirectly associated withexports of
goods, andshallthecontracts signed indicate thatthevalue ofsuchservices
hasbeentaken intoaccount intheprice oftheexported goods;
(d) other services, providing therendering ofsuchservices istreated asequivalent
toexports inaccordance withregulations issued based upontheLawreferred
tounder Section 6;
(viii) "activities within thefieldofprocessing foodandagricultural products" -activities
based ontheproduction ofagricultural andfoodproducts, classified under branches 23
to25oftheSystematic Specification ofProducts (Systematyczny Wykaz Wyrobów)
oftheChief Office ofStatistics (Gowny UrzadStatystyczny GUS);
(ix) "services inthefield ofhousing" -erection ofhousing facilities andperforming
construction andassembly works associated withthehousing industry andassociated
infrastructure intheunderstanding oftheLawreferred tounder Section 6.G/SCM/N/9/POL
Page47
5. Wherever thisLawrefers totheequivalent ofanamount expressed inECU, itmeans
anequivalent ofanamount converted intothePolish zlotywiththeuseoftheaverage currency exchange
rateannounced bythePresident oftheNational Bank ofPoland: incaseofrevenues -fortheday
ofacquiring therevenue, incaseofexpenditures -forthedayofactual payment oftheexpense.
§2. 1. From thetaxable income itispossible todeduct, withreservation toItem3,
fullorpartial investment expenditures if:
(i) intheyearpreceding thefiscal yearinwhich thedeductions arebeing made, the
taxpayer:
(a) hasbeenthelump sumincome taxpayer or;
(b) hasreached theincome torevenue rationotlower than:
- 4percentfrom activities inthefieldofprocessing agricultural and
foodproducts orrendering housing services;
- 8percentfrom theremaining types ofactivities;
(ii) priortomaking eachdeduction therearenooutstanding orduetaxliabilities fromthe
taxpayer which constitute theincome oftheStateBudget, social insurance premiums
orLabour Fund contributions, determined under separate provisions;
(iii) incaseofexpenditures referred tounder §1Item4Section 5letter from(a)to(c)and
(f)and(g),theseexpenditureshavebeendocumentedwithaninvoice(simplifiedreceipt)
issued bythepayer ofthevalue added taxwhoisnoteligible todeduction byvirtue
ofArticle 14oftheLawreferred toin§1Item4Section 6oracustoms clearance
document; thesamedocumentation requirements apply totheexpenditures associated
withthepurchase ofgoods andservices inorder tomanufacture inownscope orby
commission (order) thefixed assets specified under §1,Item4,Section 5,letter (a).
2. Thelump sumincome tax,withreservation toItem3,canbereduced bythefullor
partial value ofinvestment expenditures if:
(i) intheyearpreceding thefiscal yearinwhich thetaxreduction ismade, thetaxpayer:
(a) hasbeenthelump sumincome taxpayer;
(b) hasnotbeentaxed withthistaxandhasreached theincome torevenue ratio
notlower than:
- 4percentfrom activities inthefieldofprocessing agricultural and
foodproducts orrendering housing services;
- 8percentfrom theremaining types ofactivities;
(ii) theconditions referred tounder Item1Sections 2and3havebeenmet.
3. Ifthetaxpayer started itsactivities inthefiscal year, withreservation to§5Item4
itmay:G/SCM/N/9/POL
Page48
(1) reduce theamount oflump sumincome taxbythefullorpartial value ofinvestment
expenditures incurred thatyear, or
(2) deduct thefullorpartial value ofinvestment expenditures incurred thatyearfromthe
taxable income forthisfiscal yearandthesubsequent year, ifineachofthese years
thetaxpayer hasreached theincome torevenue rationothigher than:
- 4percentfrom activities inthefieldofprocessing agricultural and
foodproducts orrendering housing services;
- 8percentfrom theremaining types ofactivities.
Thetaxpayers specified under Sections 1and2aresubject toprovisions under Item1Sections 2
and3,respectively.
4. Ifthetaxpayer conducts business activity inthefieldofagricultural orfoodprocessing
orrendering services inthefieldofhousing construction, andtheratioofrevenues fromsuchactivities
tototalrevenues hasreached intheyearpreceding thefiscal yearfortaxpayers specified under Items 1
and2orineachofthefiscal years fortaxpayers specified under Item3thelevelofatleast60percent,
theratioofincome torevenues entitling thetaxpayer todeductions cannot belower than4percent.
5. Thedayofstarting thebusiness activity, intheunderstanding oftheRegulation, is
considered asthedateofissuing firstinvoice (bill)following thecompletion, inaccordance withseparate
provisions, ofanentry inaproper register ofbusiness entities orregister ofbusiness activities.
6. Thedeductions ofexpenditures, referred tounder §1Item4Section 5letters from
(a)to(h)made during thefiscal yearshallbetreated asequivalent tothedeductions resulting from
wearoffixed assets andintangible andlegalassets (depreciation andamortization allowances); such
deductions donotdecrease thebasis forcalculating theaccumulated depreciation inaccordance with
principles determined under separate provisions.
7. Thedepreciation allowances forfixed assets andintangible andlegalassets specified
under §1Item4Section 5,letters from (a)to(h)aremade starting from themonth succeeding the
month oftheircommissioning, butnotlaterthanfromthefirstdayofthefirstmonth afterthefiscal
yearinwhich thisdeduction hasbeenmade. Such deductions aremade untiltheendofthemonth
inwhich thetotalvalue ofdepreciation allowances becomes equal tothegross value intheunderstanding
ofseparate provisions.
8. Thesumofdepreciation allowances referred tounder Item7andtheamounts ofthe
deductions made cannot exceed thegross value ofthefixed assets purchases ormanufactured inown
scope (bycommission) andtheintangible andlegalassets.
§3. 1. Thetaxpayers referred tounder §1Item1,candeduct fromthetaxable income
thefullorpartial value ofinvestment expenditures, withreservation toItem2,tothelimitequivalent
to25percentofsuchincome.
2. Ifforthefiscal yeartheshare ofrevenues from exports exceeds thelimitof50per
centofthetotalamount ofrevenues, ortherevenues fromexports inthefiscal yearinwhich thetaxpayer
hasbecome eligible todeductions exceed theamount equivalent toECU 10,000,000 -thetaxpayers
maydeduct from theirtaxable income theinvestment expenditures uptothelimitof50percentof
suchincome.G/SCM/N/9/POL
Page49
3. Thetaxpayers, referred tounder Item2arenotsubject toprovisions under §2,Item1,
Section 1,letter (b),Item3Section 2andItem4.
§4. 1. Thetaxpayers oflump sumincome taxmayreduce thistax,withreservation
toItem2,bythefullorpartial value ofinvestment expenditures, uptothelimitof30percentofthe
taxamount before thereduction.
2. Thetaxpayers mayreduce thelump sumincome taxbythefullorpartial value of
investment expenditures uptothelimitof60percentofthetaxamount before thereduction, providing
thecircumstances referred tounder §3Item2arepresent.
3. Thetaxpayers, referred tounder Item2arenotsubject toprovisions under §2Item2
Section 1letter (b)andItem4.
§5. 1. Thedeductions, referred tounder §3canbemade bythetaxpayer when settling
thetaxliabilities fortheentire fiscal yearinwhich ithasincurred theinvestment expenditures, but
notlaterthanbythedeadline forfiling, inaccordance withseparate provisions, ofthepreliminary
statement concerning theincome reached inthefiscal yearorthestatement ontheamount ofrevenues
reached inthefiscal year.
2. Thedeductions, referred tounder §3canalsobemade bythetaxpayer asadvance
payments during theyearinthecourse ofwhich ithasincurred investment expenditures.
3. Theprovisions under Items 1and2apply respectively tothetaxpayers referred tounder
§4.
4. Incasewhen thetaxpayers, referred tounder §2Item3haveincurred investment
expenditures prior tostarting business activities andtotheamount notlower thantheequivalent of
ECU2,000,000,itcandeductsuchexpendituresfromthetaxableincomereachedinthethreeconsecutive
fiscal years, starting fromtheendofthefiscal yearinwhich thetaxpayer started itsbusiness activities,
totheamount of25percentofsuchincome acquired ineachofthese years. Suchtaxpayers arenot
subject totheprovisions under §2Item3Section 2.
5. Incaseofdeductions made inaccordance withprinciples determined under Item4,
provisions under §2Items 6to8apply respectively, providing thatdepreciation allowances aremade
starting from thefirstdayofthemonth oftheyearsucceeding theyearofcommissioning thefixed
assets orintangible andlegalassets.
§6. Incaseofconfluence oftherights fordeductions orreductions, referred tounder §3
and§5Item4,thetaxpayer isentitled toonlyonesuchright, selected bythetaxpayer.
§7. 1. Thetaxpayers shalllosetherights todeductions orreductions, referred toin
theRegulation if,before thelapse ofthree years from theendofthefiscal yearinwhich theyhave
taken advantage ofdeductions orreductions, andincases specified under §2Item3Section 2and§5
Item4-inwhich theyhaveceased totakeadvantage ofdeductions orreductions:
(1) theyfallintoarrears withpayments forsubsequent years oftaxes which constitute the
income oftheStateBudget, social insurance premiums andLabour Fund contributions
intheunderstanding ofseparate provisions;
(2) theytransfer inanyform theownership ofproperty components associated withthe
deductions from income orreductions oftax;thisdoesnotapply tothetransfer ofG/SCM/N/9/POL
Page50
ownership inresult tothetransformation ofthelegal status, merger orsplitting of
hitherto existing business entities;
(3) thecircumstances haveceased, justifying theclassification offixed assets adopted for
useatacharge based upon leaseorhirecontracts orcontracts ofsimilar character as
property components intheunderstanding ofprovisions, referred tounder §1Item4
Section 5letter (g);
(4) theyareputinthestateofliquidation, excluding theenterprises liquidated inthemode
andonprinciples determined bytheLawof13July1990ontheprivatization ofstate-
owned enterprises (Dz.U.No.51,Item298and1991No.60,Item253andNo.11,
Item480), oriftheyareannounced asinsolvent;
(5) theyreceive arefund ofinvestment expenditures inanyform.
2. Incaseofoccurrence ofcircumstances referred tounder Item1,thetaxpayers are
obligated to:
(1) increase thetaxable income bytheamount ofthedeductions made, therights towhich
theyhavelost,andincaseofincurring losses -todecreasing itbytheamount ofloss
inthesubsequent month tothemonth during which theyhave losttherights to
deductions, or
(2) remit theamount ofthereduction oflump sumincome taxinthesubsequent month
tothemonth during which theyhavelosttherights tosuchreduction, within the
deadline adopted forincome taxpayments.
§8. ThisRegulation shallcome intoforce onthedayofitsannouncement andisapplicable
toinvestment expenditures incurred fromthedayof1January 1994, andinthecaseoftaxpayers taking
advantage ofincome taxdeductions andexemptions byvirtue ofprovisions specified under §1Item3-
toinvestment expenditures incurred afterthetermination oftheperiod ofvalidity ofsuchdeductions
andreductions.
J.Oleksy
Chairman oftheCouncil ofMinistersG/SCM/N/9/POL
Page51
REGULATION BYTHE COUNCIL OFMINISTERS
of19September 1995
ontheconditions andprocedures forgranting guarantees and
guaranteeing therepayment ofbank credits from State Budget
resources andcharges resulting from guarantees andwarrantees granted
Byvirtue ofArticle 23Item6oftheLawof5January 1991 -theBudget Law(Dz.U.1993,
No.72,Item344;1994No.76,Item344;No.121,Item591andNo.133,Item685and1995No.78,
Item390)itishereby declared asfollows:
§1. Wherever theRegulation mentions:
(1) aguarantee -itmeans alsotheguaranteeing toforeign banks andinternational financial
institutions therepayment offoreign credits orloans, including theinterest andother
costs, shallthisberequired byitsprinciples orinternational customs;
(2) applicant -itmeans thedebtor orthecreditor, andinrelation toaforeign credit -also
theborrower orlender;
(3) domestic credit -itmeans acredit granted bythecrediting bankwhich isanational
person intheunderstanding oftheLawof2December 1994 -theForeign Exchange
Law(Dz.U.No.136,Item703);
(4) foreign credit -itmeans acredit oraloangranted bythecreditor oralender, being
aforeign person intheunderstanding oftheLawreferred tounder Section 3.
§2. 1. Upon theapplication filedbythecreditor orthecrediting bank, aguarantee
maybegranted fromtheStateBudget resources fortherepayment oftheentire bankcredit oritspart,
allocated tothepurposes determined under §3.
2. Theguarantee, referred tounder Item1,canalsoapply totherepayment oftheentire
interest from thebankcredit oritspart.
§3. 1. Theguarantees from State Budget resources mayencompass therepayment
ofaninvestment credit granted forthefollowing purposes:
(i) thedevelopment andmaintenance ofinfrastructure;
(ii) environmental protection;
(iii) supporting adaptation anddevelopment processes inbusiness entities, ensuring the
growth ofprofitability andcompetitiveness;
(iv) restructuring investment with short implementation cycles, based onthelatest
technological solutions andmeeting ecological requirements;
(v) other undertakings when theimplementation oftasks financed withcredit;
(a) ensures theexports salesofgoods andservices amounting atleastto20percent
ofthetotalsalesvalue, orG/SCM/N/9/POL
Page52
(b) ensures theimplementation ofnewtechnical andtechnological solutions inthe
national economy, or
(c) willbeconducted within regions particularly threatened withhighstructural
unemployment.
2. Theguarantee referred tounder Item1canalsoencompass therepayment ofacredit
granted for:
(1) thepurchase ofmaterials andfinished goods fortheimplementation ofundertakings
aimed atmanufacturing investment goods forexports, withtheunitvalue ofover
ECU 10million andproduction cycle ofmore thansixmonths, ifsuchpurchases are
notfinanced withcredits falling under thesubsidies from State Budget byvirtue of
Article 3Item1Section 3oftheLawof5January 1995onthesubsidies totheinterest
from certain bankcredits (Dz.U.No.13,Item60andNo.83,Item418);
(2) launching government privatization programmes.
3. Aprecondition togranting theguarantee ofcredit repayment isthesigning ofa
conditional credit agreement or,incaseofaforeign contract, orpresenting adraftcredit agreement.
§4. Theguarantee ofcredit repayment islimited intimeandgranted forapredetermined
amount.
§5. 1. Theapplications forgranting theguarantee shallbefiledtotheMinister of
Finance.
2. Theapplications, withtheexclusions determined under Item3,shallcontain:
(1) general information onthedebtor;
(2) description oftheeconomic andfinancial standing ofthedebtor forthelastthreeyears
orfortheentire period ofitsactivities shallitbeshorter thanthree years;
(3) thefeasibility study oftheinvestment programme;
(4) thecashflowstatement during theventure implementation;
(5) anopinion from thefounding organ, ifapplicable;
(6) anopinion from theTreasury Office, proper tothedebtor;
(7) aconditional credit agreement oradraftcredit agreement incaseofforeign credits,
withthespecification oftheamounts ofsubsequent credit instalments andinterest
payments andthematurity date;
(8) acertificate from theSocial Insurance Authority (ZakadUbezpieczen ´Spoecznych
ZUS) concerning thestateofthepayments ofpremiums totheSocial Insurance Fund
andtheLabour Fund;G/SCM/N/9/POL
Page53
(9) anopinion fromthebankrunning thebasicaccount ofthedebtor andthecreditor bank,
andincaseofaforeign credit -bythecreditor orthenational intermediating (servicing)
bank;
(10) anopinion from theCentral Planning Office, incases specified under §6Item 2
Sections 1and2.
3. Theapplication ofamunicipality (gmina) shallcontain:
(1) thegeneral information onthedebtor;
(2) astatement ontheexecution ofthemunicipality budget fortheprevious year;
(3) aquarterly statement ontheexecution ofthemunicipality budget inthecurrent year;
(4) theinformation onthemunicipality current liabilities;
(5) anopinion from thevoivode;
(6) anopinion from theregional Clearing House;
(7) anopinion from thebankservicing themunicipality budget;
(8) afeasibility study oftheinvestment programme;
(9) acashflowstatement fortheventure implementation;
(10) aconditional credit agreement oradraftcredit agreement incaseofforeign credits,
withthespecification oftheamounts ofsubsequent credit instalments andinterest
payments andthematurity date;
(11) acertificate from theSocial Insurance Authority (ZakadUbezpieczen ´Spoecznych
ZUS) concerning thestateofthepayments ofpremiums totheSocial Insurance Fund
andtheLabour Fund.
4. TheMinister ofFinance may:
(1) conditiontheprocessingoftheapplicationuponthesubmissionofadditionaldocuments;
(2) relieve theapplicant from theobligation tosubmit some ofthedocuments specified
under Item2,incases determined under §3Item2Section 2.
5. Theapplications forgranting theguarantees shallbesubmitted intheformconsistent
withthestandard form adopted bytheMinister ofFinance.
6. Incaseformal transgressions orother faults arefound intheapplication, theMinister
ofFinance willsummon theapplicant toremove themwithin atimelimitdetermined bytheMinister,
butnotshorter than30days. Theuncorrected applications shallnotbeprocessed.
§6. 1. TheMinisterofFinanceshallassesstheapplicationforthegrantingofaguarantee
afterseeking theopinion ofaproper Minister oravoivode.G/SCM/N/9/POL
Page54
2. TheCouncil ofMinisters shallprocess theapplications positively opinionated bythe
Minister ofFinance forthegranting ofguarantees of:
(1) repayment ofadomestic credit, when theamount ofcredit repayment guarantee with
interest quoted intheapplication doesexceed Zl20million;
(2) repayment ofaforeign credit, when theamount ofcredit repayment guarantee with
interest exceeds ECU 7million;
(3) therepayment ofabank credit forfinancing investments which constitute the
municipalities 'owntasks, presented bythemunicipality orthecreditor.
3. Iftheapplication ispositively evaluated, incases notreserved under Item2tothe
properties oftheCouncil ofMinisters, thecredit repayment guarantee maybegranted bytheMinister
ofFinance.
§7. 1. Theguarantee isgranted tothelevelof60percentoftheutilized amount of
thecredit raised andtheinterest fromthatamount. Incaseofforeign credits, theguarantee mayapply
totheinterest associated withtheutilized credit amount ortheamount putatthedebtor 'sdisposal,
orwithboththese amounts.
2. TheCouncil ofMinisters, inparticularly justified cases mayguarantee therepayment
oftheentire credit amount including theinterest, andinthecaseofforeign credits -including also
theother costs associated withthecredit.
3. Thecontract signed withthedebtor forgranting theguarantee andtheguarantee contract
withthecreditor shallbesigned bytheMinister ofFinance, andincases when theguarantee isgranted
bytheCouncil ofMinisters -bytheMinister ofFinance onbehalf oftheCouncil ofMinisters.
4. Incaseofnegative evaluation oftheapplication, theMinister ofFinance shallpromptly
inform theapplicant about thisfact.
§8. 1. Aprecondition tosigning theguarantee contract istheissuing ofabillof
exchange ordrawing anotary actinwhich thedebtor undertakes tosubmit itself totheexecution for
thebenefit oftheStateTreasury totheamount covered bytheguarantee orthepresentation ofanother
security required bytheguarantor.
2. Theamounts acquired bywayofexecution proceedings shallbetransferred totheState
Budget account andconstitute itsincome.
§9. Byvirtue oftheguarantee granted, asingle commission ischarged, calculated based
upon theamount ofcredit granted covered bytheguarantee, totheamount of:
(1) 0.5percentforcredits withthematurity ofuptooneyear;
(2) 1percentforcredits withthematurity period longer thanoneyear, butnotexceeding
three years;
(3) 1.5percentforcredits withthematurity offrom three uptofiveyears;
(4) 2percentforcredits withthematurity ofoverfiveyears.G/SCM/N/9/POL
Page55
§10. 1. Thecharges, referred tounder §9,shallbewithheld fromthefirsttranche of
thecredit granted bythecreditor andtransferred totheState Budget account. Inthecaseofforeign
credits, suchcharges shallbetransferred bythecreditor through thedomestic intermediary (servicing)
bank.
2. Thecharges, referred tounder §9,concerning theforeign credit granted, andwith
thepermission oftheMinister ofFinance -thedomestic credit, mayalsoberemitted bythedebtor
andtransferred totheState Budget account.
3. Theguarantee contract assumes legalforce upontheremittance ofacharge, referred
tounder §9.
4. Theregister ofcharges remitted fortheguarantees granted shallbekeptbytheMinister
ofFinance, inaccordance withtheprinciples ofbudget registers.
§11. 1. TheRegulation bytheCouncil ofMinisters of27April 1993ontheconditions
andproceedings ofgranting guarantees ofrepayment fromStateBudget resources ofbankcredits and
charges fortheguarantees granted ishereby declared nullandvoid(Dz.U.No.40,Item185).
2. Theapplicationsforguarantees,submittedtotheMinisterofFinancepriortotheenacting
ofthisRegulation shallbesubject toprovisions under theRegulation, referred tounder Item1.
§12. ThisRegulation shallcome intoforce withthedayofitsannouncement.
J.Oleksy
Chairman oftheCouncil ofMinisters