Grants and tax incentives for investments in Poland

1 Grants and tax incentives for investments in Poland 8 | Doing business in Poland Business climate Poland has been successful in improving its Poland has built a system of incentives business environment over the past decade (both domestic and from EU sources) to as evidenced by its move up in international encourage foreign investment . rankings comparing countries in terms of As of December 2015, the most important competitiveness and ease of doing business sources of foreign direct investment in ( Global Competitiveness Report, World Poland included large euro area economies Bank's Doing Business).

2 This improvement and important international nancial is re ected in recognition of Poland as one centers, among others: Netherlands, of the top prospective location for foreign Germany, Luxembourg, France and Spain. investors (not only in the CEE region but in Europe as a whole) and continuous in ows of foreign capital into Poland . In fact, between 2004 and 2015, the stock Top 10 sources of FDI. of Foreign Direct investment in Poland in Poland (2015). has increased from EUR 67 bn to over 1 Netherlands EUR 204 bn. 2 Germany There are several reasons why foreign companies view Poland as an attractive 3 Luxembourg location for their investment : 4 France P.

3 Oland was one of few countries in the EU where real unit labor costs have 5 Spain decreased since 2004. Importantly, 6 UK. the real ULC are generally more stable in Poland than in other EU countries, 7 Italy including large, developed economies 8 Austria Poland has access to the EU Single Market of over 500 million customers, 9 Cyprus as well as a large domestic market of approx. 38 million customers 10 Belgium Poland is a source of young, skilled Source: Narodowy Bank Polski workforce with good knowledge of foreign languages Doing business in Poland | 9.

4 Business climate Selected main SSC/BPO and R&D centers' locations in Poland Tri-City: Gda sk, Gdynia, Sopot Szczecin Warsaw Pozna . d . Lublin Wroc aw Katowice Rzesz w Krak w Source: EY. 10 | Doing business in Poland Business climate Selected BPOs/SSCs operating in major Polish cities Tri-city Nokia Networks Hewlett-Packard Amazon Teleplan IBM. Bayer Pozna ITMAGINATION. First Data Corp. Arvato Jones Lang LaSalle Geoban Bridgestone Microsoft Intel Europe Inc. Carl Zeiss MoneyGram Lufthansa Carlsberg Oracle Luxoft CenturyLink Procter & Gamble Nordea Bank Dalkia Roche Sony Pictures Global Business Franklin Templeton Royal Bank of Scotland (RBS).

5 Service GlaxoSmithKline Services Samsung State Street IKEA SAP. Thomson Reuters Jeronimo Martins Siemens ThyssenKrupp MAN TNT Express WNS Global Services MARS Xerox Szczecin McKinsey d . Arvato Roche Accenture Coloplast Veolia Bosch-Siemiens Convergys Warsaw Citi Group Convergys International 3M DHL Express Dansk Supermarked Accenture Ericpol DGS. AVON Fujitsu Metro Services BNP Paribas Hewlett-Packard Tieto Citi Group Infosys Unicredit Coca-Cola SAP. Bydgoszcz Colgate-Palmolive Services Takeda Alcatel Lucent Faurecia Teleca Atos GE TomTom JPMorgan Chase Google UPS Global Business Services Mobica Doing business in Poland | 11.

6 Business climate Veolia IBM Euroclear Wroc aw ING Services Google Alstom Kroll Ontrack Heineken Atos Orange Hitachi BNY Mellon PwC HSBC. Capgemini Rockwell Automation IBM. Credit Suisse Saint Gobain International Paper Dolby Sopra Steria Lufthansa Global Business Services EY Global Services Unilever Luxoft Google Wincor Nixdorf Motorola Hewlett-Packard Lublin Nokia HP Asseco Business Solutions Philip Morris International IBM Compugroup Medical Rolls-Royce Luxoft Convergys RWE. McKinsey Genpact Sabre Merck Orange Shell Nokia Networks Sii State Street Qatar Airways Krak w Uber Ruukki ABB.

7 UBS. UBS Akamai Rzesz w UPS Alexander Mann Solutions Asseco Viessmann Amway BorgWarner Volvo IT Brown Brothers Harriman Deloitte Katowice Capgemini Hamilton Sundstrand ArcelorMittal CH2M. Mobica Capgemini Cisco MTU Aero Engines Dunlop Delphi Nestl . General Motors Electrolux Pratt & Whitney Source: EY, ABSL. 12 | Doing business in Poland Business climate Starting from basic accounting and call- that companies investing in this sector in center functions, the range of processes Poland , recognizing local potential, are realized by BPOs/SSCs, along with their interested in developing their activities in maturing presence in Poland became more more advanced areas, such as high-tech complex and diverse.

8 It is clearly visible R&D and substantive process management. Diversity of processes and functions executed in BPOs/SSCs in Poland IT IBM. RBS Oracle Opera HP Amway Cisco Autodesk TomTom CBRE. 3M. Microsoft State Street HR. Grant Thornton Eaton Shell ABB. Sony Pictures R&D Google Siemens GE. P&G. Motorola Abbvie Intel Heineken IBM. Wincor McCormick Nixdorf Pandora Takeda bioMerieux Shell Chrysler P&G. Verifone Siemens Cooper Standard Kemira Stanley Black & Decker EDF Delphi Finance UBS Heineken Procurement Arla 1 2 3 4. Usually Often Sometimes Selected companies Source: EY.

9 Doing business in Poland | 13. Business climate investment incentives in Poland Regional aid for new investments There are many opportunities for Regional aid is the most popular type of companies to obtain nancial support for aid for companies carrying out investment projects in Poland from both European projects in Poland . It is granted only for Union Funds and domestic sources. In this initial or new investments , which are publication we focus on the most popular generally de ned as investments related to: of the aid schemes available for companies Setting-up of a new establishment but it is worth noting that there are many Extension of the capacity of an existing more that can be utilised.

10 Therefore, when establishment considering a new investment in Poland , it is important for each case to be analysed Diversi cation of the output of an individually various sources and types of establishment into products not support may be available, depending on the previously produced scope of the project. Fundamental change in the overall production process of an existing Regardless of the form of support, the establishment incentive system as a whole complies with EU legislation and requirements concerning Acquisition of assets belonging to state aid.