Can the construction of a warehouse or logistics centre for own use constitute a standalone new investment under the Polish Investment Zone?

In discussions about the Polish Investment Zone, a question frequently arises which, at first glance, may appear somewhat technical, but which carries very concrete practical implications for business: can the construction of a warehouse or logistics centre for own use constitute a standalone new investment within the Polish Investment Zone framework?

In my view, the answer is, as a general rule, yes.

The uncertainty that tends to arise in this context usually stems from the fact that this type of investment does not generate independent revenue. A warehouse built for own use does not provide services to external clients, does not constitute a separate source of sales, and does not “earn” directly. For many entrepreneurs, this appears to be the decisive factor.

In my assessment, however, that is not where the crux of the issue lies.

The absence of independent revenue does not preclude eligibility

The fact that a warehouse or logistics centre is constructed for the purposes of one’s own business operations should not, in itself, lead to the conclusion that the investment is ineligible for support under the Polish Investment Zone.

In commercial practice, such facilities very often fulfil a critical function. They are what enables an enterprise to handle greater volumes of goods, increase inventory levels, improve order picking, accelerate order fulfilment, enhance supply chain management, and expand the scale of distribution. In other words: they do not generate revenue directly, but they materially enhance the entrepreneur’s capacity to conduct and develop business operations.

And it is precisely this aspect that is of fundamental importance from the Polish Investment Zone’s perspective.

Supporting activities may also be eligible for support

The explanatory guidelines issued by the Minister of Finance make it clear that a new investment related to the increase of a company’s production or service capacity may concern not only production or the provision of services as such, but also activities that support these processes.

This is a significant interpretive pointer, as it accurately reflects the realities of business operations. Growth in the scale of activity does not always begin with a new production line or a direct expansion of the product or service offering. Very often, it is conditional upon the development of operational infrastructure.

The explanatory guidelines capture this point aptly:

“Where a new investment does not independently generate revenue, but has a direct impact on increasing production capacity (e.g. the construction of warehouses for the storage of products), which is a condition for recognising it as a new investment, the income derived from such a new investment should be allocated separately from the taxpayer’s overall income in accordance with Article 17(6a) and (6b) of the Corporate Income Tax Act.”

This passage clearly illustrates the underlying logic. Framing the question solely around whether the investment itself generates revenue would lead to an excessively reductive approach. In the case of warehouses and logistics centres, the more pertinent question is whether the investment genuinely enhances the entrepreneur’s operational capacity.

What does this mean in practice?

In practice, it is useful to approach this issue through five straightforward propositions.

First, a warehouse or logistics centre constructed for own use is not required to generate independent revenue. This is an entirely natural situation and should not, in itself, give rise to any objection.

Second, the absence of independent revenue does not preclude the investment from qualifying for support under the Polish Investment Zone. Projects of this nature are not inherently outside the scope of the scheme simply because they serve an internal function.

Third, the explanatory guidelines permit investments that support core business activities, even where they do not generate independent revenue. This is significant, as it demonstrates that the support framework should reflect the actual operating mechanisms of the business — not only classic “revenue-generating investment” models.

Fourth, the decisive criterion is the investment’s genuine impact on the entrepreneur’s operational capacity. It must be demonstrated that the new warehouse or logistics centre is not merely a passive infrastructure asset, but an element that materially enhances the entrepreneur’s operational, service, or distribution capacity.

Fifth, the tax-exempt income is determined not at the level of the warehouse itself, but through the appropriate allocation of a portion of core business income to the new investment. This follows from the fact that a supporting investment does not always function as an independent source of revenue, but may be directly connected to the income generated by the enterprise as a whole.

Why this approach is correct

In my view, this approach is not only consistent with the explanatory guidelines, but also with the underlying economic rationale of the Polish Investment Zone.

In many businesses, the construction of a warehouse or logistics centre is not a peripheral matter but a prerequisite for further growth. Without such an investment, the company is unable to scale up its operations, handle greater volumes of goods, process them efficiently, or expand its distribution network. From this perspective, it would be artificial to require that every investment eligible for support under the Polish Investment Zone must, in itself, generate a separate stream of revenue.

A far more compelling question is whether the new investment genuinely enhances the entrepreneur’s operational capacity and whether this can be demonstrated on a reasoned basis.

Confirmation in the interpretive practice of the tax authorities

This approach is also reflected in the interpretive practice of the tax authorities. In an individual tax ruling issued on 17 May 2022, the Director of the National Revenue Information Office accepted the position that the construction of a distribution centre may constitute a new investment, and that the tax exemption applies not to the company’s income as a whole, but to that portion which – in accordance with the applicable allocation methodology – can be attributed to that investment.

This is a significant confirmation, as it demonstrates that in the case of logistics investments, the emphasis should not be placed on the independent generation of revenue by the facility itself, but rather on its function within the entrepreneur’s overall business structure and on the proper allocation of the tax-exempt income.

Conclusion

In my view, the construction of a warehouse or logistics centre for own use may constitute a standalone new investment under the Polish Investment Zone.

Not because such an investment begins to “earn” in its own right, but because it may constitute a supporting activity that genuinely enhances the entrepreneur’s operational or service capacity. In such a case, the absence of independent revenue does not disqualify the project. What is decisive, however, is the proper demonstration of the investment’s function and the correct determination of the tax-exempt income through the allocation of a portion of core business income to the new investment.

And that, in my view, is the most important practical takeaway from projects of this nature: in the context of the Polish Investment Zone, it is not always the case that what matters is whether the investment generates sales in its own right. Often, the more pertinent question is whether, without it, the entrepreneur would be able to scale up their operations at all.