Transcript Why Poland? Further reasons to invest

Poland – the right location for
intangible services centres
Poland – key factors of successful investment by intangible
services centres
 High
percentage of graduates in IT, engineering, economics, etc.
 High
mobility of skilled workforce
 Competent
 Excellent
motivation of young Polish employees
 Beneficial
 Tax
Polish managers
geographical location
incentives
 Business
environment in Poland
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High percentage of graduates in IT, engineering, economics, etc.
(1)

Second highest number of students in Europe

Multiple academic and scientific units in all major cities

Numerous technical universities and scientific centers
- recognized scientists with world-renowned achievements
- highly qualified engineers, IT specialists and biotechnologists

Many talented, hard working and ambitious graduates

Good knowledge of foreign languages
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High percentage of graduates in IT, engineering, economics, etc.
(2)
Foreign investment success stories involving young well educated Polish graduates
over 40 R&D centers:
ABB Kraków
IBM Kraków
Bosh - Siemens Łódź
TRW Automotive Częstochowa
CapGemini Polska Wrocław
Delphi Automotive System Kraków
Motorola Kraków
Oracle Warszawa
Siemens Wrocław
Philips Piła, Kętrzyn
Ontrack Katowice
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High percentage of graduates in IT, engineering, economics, etc.
(3)
 Polish
IT students won prestigious international programming competition
(Top - Coder and Google Jam)
 R&D
centers located in cities considered to have the best educated young
employees in Poland e.g. ABB Kraków, Siemens Wrocław, Microsoft Warszawa, etc.
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High mobility of skilled workforce
 Intangible service centers located in both academic and non - academic cities
 Change in the mentality of young Polish people in favour of moving to a new
place
Example: TRW engineering centre employs 300 professionals in Częstochowa
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Competent Polish managers
 Tendency
to replace foreign managers by experienced and highly motivated Polish
managers
 Example:
- In the consulting business, a decrease in the number of foreign to Polish managers
ratio from 90% to 40% within the last 10 years
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Excellent motivation of young Polish employees
 According
to statistical data, Poland is a country where people work the longest
hours
 Polish
employees are highly evaluated by foreign investors as very much success
driven
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Beneficial geographical location
 Advantageous
 European
time difference ahead of the US
business culture
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Tax incentives
 Possibility
to operate within Special Economic Zones and benefit from income tax
exemption up to 50% of capital expenditure or labour costs
 Tax
incentives for R&D centers
– if a new R&D centre is established – 20% of sales revenues can be treated as additional tax
deductible cost
– if new technology is acquired – 150% of related expenditure can be treated as tax deductible
cost (50% premium)
– Technological innovation credit is available to purchase fixed assets related to R&D
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Business environment in Poland – legal and tax requirements (1)
 limited
liability company (spółka z ograniczoną odpowiedzialnością) as the most
popular legal form of newly established entities
– minimum share capital required for an Ltd – PLN 50,000 (approx. EUR 12,500)
– actions necessary to establish a new Ltd
 executing the articles of association in the form of a notary deed
 opening a bank account in a bank operating in Poland
 paying the contributions to cover the entire share capital into the Polish bank account of the
company
 appointing the Management Board of the company (this can be done in the same notary deed as
the articles of association); if they are not Polish citizens, a work permit is required
 registering with the National Court Register (KRS)
 registering for statistical purposes with the Statistical Office (obtaining REGON number)
 applying to the tax office for tax identification number (NIP) and registering for VAT purposes
– minimum time required to establish an Ltd – 1 month
– time necessary to perform all the actions, including tax registration – up to 3 months
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Business environment in Poland (2)
 Corporate
Income Tax
– standard rate – 19%
 applicable to all types of income, including capital gains
– taxation of resident and non-resident entities
 capital gains of foreign investors – generally exempt from tax in Poland under relevant Double
Tax Treaties (with the exception of Real Estate)
 application of Double Tax Treaties to specific transactions – typical tax issues (e.g. cross-border
lease – withholding taxes, permanent establishment exposure)
– thin capitalisation and transfer pricing restrictions in place
– application of EU Directives with respect to taxation of interest, royalties and dividends
 Value Added
Tax
– EU harmonised system
 implementation of EU VAT Directives (including VI Directive) as of 1 May 2004
– Standard rate of 22%, reduced rates of 7% and 0%
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