Shipbuilding industry will get a boost

Paweł Szałamacha and Marek Gróbarczyk, Polish Minister of Finance and Minister of Maritime Economy and Inland Navigation, caught up everyone’s attention in a press conference that was held on Monday in Szczecin, in a shipyard cafeteria.

The press event was called up in order to present a government remedy that is to bring back life to Polish shipbuilding and ship repair industry.

The two Ministers revealed a draft proposal of the “shipyard act”, or the Act on stimulation of shipbuilding industry and complimentary production, as it is officially known.

The government has great confidence that the new regulation will give the industry a substantial boost. The aim is to bring new jobs and increase production.

Minister Szałamacha called it a great day for the shipbuilding industry.

The new regulations are to affect shipbuilding companies as well as ship repairers and suppliers of materials and components.

The industry will be able to take advantage of some favourable amendments concerning taxation. Tax credits will allow companies to increase their cash flow and breathe a little easier.

According to the proposals, shipyards will have a choice between paying the standard Corporate Income Tax and a new 1% lump-sum tax on sales. In the case of choosing the latter, the taxation method will have to remain unchanged for the period of three years.

The act will also bring amendments with respect to VAT tax obligations. The industry will enjoy special tax treatment. The list of floating units with respect to which 0% VAT tax rate applies will be extended. Companies will allocate smaller portion of their assets for taxation.

Another solution to support the industry is allowing shipyards to join special economic zones. Members of these zones enjoy many preferences, for example tax benefits. The zones are created to boost investment and development in specific regions.

The tax credits will not apply to offshore projects, such as construction of oil platforms.

The changes, according to the Ministry of Maritime Economy and Inland Navigation, will create additional five thousand jobs.

The shipyard act, the details of which are still being worked upon, is to come into force on 1 January 2017, as the state officials announced. The act will be presented to the Parliament for voting probably in April.

The proposed solutions are compliant with EU regulations.