Ghent, February 26, 2013

Embassy of Poland

Trade & Investment Promotion Section

Krzysztof Turowski, Counsellor, Head of Section

INVESTMENT CLIMATE ANDBUSINESS OPPORTUNITIES

IN POLAND

Poland - Key Facts

Area: 312 700 sq km – 6th in European Union

Population:38,12 million – 6th in European Union

Currency: Polish Zloty (1 USD ~ 3.1 PLN, 1 EUR ~ 4.1 PLN)

GDP: EUR 371,878 billion (2011) – GUS estimation

EUR 280.756 billion (Q3 2012) – GUS estimation

GDP per capita: EUR 16 000 (2011)

GDP growth: 1.6% (2009), 3.9% (2010), 4.3% (2011), 2.0% (2012 – preliminary data) Membership: EU, NATO, OECD, WTO, Schengen Zone

Competitive Advantages

Location & economic fundamentals

strategic location in continental Europe part of trans-European transportation corridor third fastest growing EU country in 2010 38 million consumers

Location & economic fundamentals

strategic location in continental Europe part of trans-European transportation corridor third fastest growing EU country in 2010 38 million consumers

Investment incentives tax exemptions in 14 Special Economic Zones grants co-financed from the EU (EUR 90 bn)

Investment incentives tax exemptions in 14 Special Economic Zones grants co-financed from the EU (EUR 90 bn)

Labor force young, well-educated work force ca 11% of university students in the EU 455 universities & high education schools language proficiency increasing labour productivity

Labor force young, well-educated work force ca 11% of university students in the EU 455 universities & high education schools language proficiency increasing labour productivity

1000 km radius

250 mn people

2000 km radius

550 mn people

Polish economy in figures –

GDP growth in recent years

* Preliminary data

Polish economy in figures

– inflation rate

EU 27 average in 2012 = 2,6%* - source Eurostat

* Provisional data

Source – Central Statististical Office

Polish economy in figures - unemployment rate

0

10

20

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Mazowieckie10.2%

Podlaskie13,8%

Lubelskie13,0%

Podkarpackie15,1%

Małopolskie10,6%

Śląskie10,4%

Opolskie13,2%

Dolnośląskie12,5%

Lubuskie15,1%

Świętokrzyskie14.8%

Łódzkie13,2%

Wielkopolskie9,1%

Warmińsko--Mazurskie

19,5%

Pomorskie12,4%

Kujawsko--Pomorskie

16,7%

Zachodnio--Pomorskie

16,7%

15% >

11-15

10% <

Source: Central Statistical Office, as of September 2012

201213.4%

• Corporate Income Tax (CIT) rate 19%

• Personal Income Tax (PIT) rate18% and 32%

• Value added tax (VAT) basic rate: 23%reduced rates: 8%, 5% export rate: 0%

• Social Security Tax paid by employer

between 19.48% and 22.14%

Tax rates

Corporate income tax rates across Europe

10%

13%

15%

15%

16%

19%

19%

19%

21%

20%

20%

25%

26%

26%

26%

28%

30%

33%

33%

34%

Bulgaria

Ireland

Latvia

Lithuania

Romania

Poland

Hungary

Slovakia

Estonia

Czech Rep.

Slovenia

Ukraine

Netherlands

Finland

Sweden

UK

Spain

Germany

France

Belgium

Source: www.wodlwide-tax.com

Entrepreneurs in Poland pay one of the lowest CITin Europe

Polish economy in figures

– foreign trade

* Estimation – Ministry of Economy

in EUR billion

Polish economy in figures – trade exchange with the EU

countries

Preliminary data of the Ministry of Economy; in EUR million

Polish-Belgian commercial turnover: 6 309,46 (9th place)

FDI flows worldwide & in Poland in 2011 (bn USD, UNCTAD)

+46.7%

+17%

Source: UNCTAD, 2012.

World

Poland

World Investment Report 2011

Source: World Investment Report, 2011

World’s most attractive destinations for Foreign

Direct Investments

Rank 2011 (2010)

Country

1 China

2 USA

3 India

4 Brazil

5 Russia

6 (12) Poland

: :

9 Germany

13 UK

14 Singapore

Growth reasons:1. Cash reserves of MNCs2. Restructurization / Delocation3. Undervalued companies

According to UNCTAD the key factors attracting FDI to Poland are:

• rapidly expanding domestic market

• size of the domestic market

• flexible & skilled labour force

• high quality/cost ratio

Source: AmCham, KPMG

Investment attractiveness of Poland – strengths

Source: AmCham, KPMG

Investment attractiveness of Poland – weaknesses

-1,40

-1,20

-1,00

-0,80

-0,60

-0,40

-0,20

0,00

Support fromgovernmentinstitutions

Simplicity of taxsystem Red tape

Quality of railwaysystem

Quality of roadsystem

Tax breaks CIT exemption in Special Economic Zone

Real estate tax exemption

Cash support

Government grants through individual negotiations

Cash grants available through EU Funds

Forms of regional aid

Special Economic Zones

A special economic zone (SEZ) is a designated area in which manufacturing or distribution activities can be conducted on preferential terms

The purpose of SEZs is to support regional development

Currently, there are 14 SEZs in Poland, each consisting of several subzones

Total area of all SEZ – 20 000 hectares SEZ will operate until 2020 Permits to conduct activities in SEZ are issued by

the authorities of each SEZ Minimum investment: EUR 100,000 Possibility of including the land selected by an

investor into SEZ Benefits from obtaining a permit to conduct activities in SEZ :

eligibility for income tax exemption – a form of regional aidplot of land prepared for an investment project, available at a

competitive pricefree assistance in dealing with formalities relating to the investment

project

Government grants

Production

automotive

electronics

aviation

biotechnology

„big investment” in other sectors

Program of support of investments of considerable importance for Polish economy

Purpose of support

development of innovativeness and competitiveness of Polish economy

Result of support

50 programmes of total amount 13,5 bn PLN (since 2004 r.)

33,7 thous. of new jobs

Source: PAIiIZ, Ministry of Economy

Modern services

ICT

SSC

BPO

R&D activity

20 m people aged 35 and less

almost 2 m students

more than 430 thous. graduates every year

more than 90% of students know foreign

languages

20 m people aged 35 and less

almost 2 m students

more than 430 thous. graduates every year

more than 90% of students know foreign

languages

455 higher education institutions

• 18 universities

• 22 technical universities

• 95 academies of economics

growing number of science students

455 higher education institutions

• 18 universities

• 22 technical universities

• 95 academies of economics

growing number of science students

Students and graduates

Source: Central Statistical Office

Main academic centers

POZNAN

WROCLAW

WARSZAWA

KRAKOW

LODZ

SZCZECIN

TRI-CITY

KATOWICE

BYDGOSZCZ/TORUNBIALYSTOK

OLSZTYN

ZIELONA GORA

OPOLEKIELCE

LUBLIN

RZESZOW

201 >

151 – 200

101 – 150

51 – 100

50 <

No. of students (thousands)

City Students Graduates

Warszawa 276 000 65 300

Wroclaw 146 000 30 000

Katowice 112 000 23 500

Krakow 185 000 35 500

Poznan 137 500 33 000

Tricity 95 000 20 500

Lodz 120 500 27 500

Students in Poland

Why Poland? Summary

Availability of skilled human resources

Economic and political stability

Effective incentives system including EU-Funds

Strategic location – gateway to EU

Innovative economy

Trade & Investment Promotion Section

Embassy of Poland in BrusselsAv. de l’Horizon 18

1150 BrusselsPhone +32 2 771 67 54Fax +32 2 771 18 39

E-mail:brussels@trade.gov.pl www.brussels.trade.gov.pl

Thank you for your attention!