Zone Exemption Also Covers Auxiliary Activities
The Provincial Administrative Court (WSA) in Poznań confirmed that the tax exemption granted to the company based on a support decision may also include assembly services.
A company specializing in battery production inquired whether the tax exemption also extends to the installation of additional accessories. Tax authorities argued that since such additional services were not explicitly listed in the support decision, the income derived from these activities could not be considered exempt.
However, both the first-instance court and subsequently the Supreme Administrative Court (NSA) determined that the zone exemption also applies to auxiliary activities when there is a close, inseparable, and functional connection between such activities and the primary business operations.
“This ruling deserves approval and stabilizes the judicial precedent, which holds that auxiliary activities related to the primary business operations also benefit from the tax exemption based on a support decision,” emphasizes Łukasz Łebski, Director of the Tax Reliefs and Incentives Team at Thedy & Partners.