Poland is one of the most attractive locations for foreign investments. International reports highlight the economic and political stability of Poland, educated and competent human capital and a large domestic market. In times of global economic crisis Poland has strengthened its position, not only in the region of Central and Eastern Europe but also all over the continent. Foreign investors willingly invest their capital in Poland treating it as a safe haven in times of economic instability.
Poland’s 38-million strong consumer market is one of the biggest in Europe. The country’s favourable location, in the centre of Europe, where the main communication routs intersect, makes it possible to export goods to all European countries and thus reach over 500 million consumers. Poland’s major trade partners are, among others, Germany, Russia, China, France, the UK, Italy, Hungary, Ukraine and Spain.
Well-educated Polish economists, engineers, IT specialists and scientists are highly sought-after and appreciated employees who find employment in IT companies, R&D centres and scientific institutes. Every year, the number of graduates of Polish universities increase, including faculties useful in high-tech industries.
The country’s sustainable development has much to do with the its solid economic foundations. The global economic crisis has not harmed Poland, which is the only country in Europe to have avoided a recession, and additionally has developed at the highest rate on the continent. Assessment of the investment climate for foreign entrepreneurs every year is getting better.
Doing business in Poland: https://www.biznes.gov.pl/en/firma/doing-business-in-poland]
Rules of conducting economic activity in Poland by foreigners: https://www.biznes.gov.pl/en/firma/doing-business-in-poland/running-business-by-foreigners-in-poland/rules-of-conducting-economic-activity-in-poland-by-foreigners
Tax administration in Poland lies in the hands of two kinds of authorities:
• governmental ones (corporate income tax (CIT), personal income tax (PIT), value added tax (VAT), excise duty, civil transactions tax)
• local governmental ones (real estate tax, vehicle tax).
Tax administration consists of two instances, i.e. decision made by the authority of the first instance may be challenged to the second instance authority.
The tax authorities also include:
• the Head of National Revenue Administration whose competences include matters related to tax avoidance, including advance safeguarding tax rulings, and the conclusion of advance pricing agreements,
• the Director of the National Revenue Information System responsible for issuing individual advance tax rulings, and
• the Minister of Finance responsible for issuing general advance tax rulings.
General information about the tax system in Poland: https://www.paih.gov.pl/polish_law
Companies undertaking research and development work, developing know-how and most importantly, commercialising the results of research work may count on unprecedented amounts of funding. Available support mechanisms include EU grants, national funds and tax relief.
Polish Development Fund: https://pfr.pl/en
Poland adopted the New Investment Support Act in June 2018. The new law intends to expand the area offering tax incentives up to almost 100% of Poland’s investment space. This is a diametrical change in relation to the old legislation which allowed Special Economic Zones only at 0.08% of Polish territory. The New Investment Support Act provides that all the areas allocated for business activities in Poland will be turned into a single investment zone. After the two decades during which the law ceased to keep pace with the dynamically developing economic situation of this country, the Ministry of Entrepreneurship and Technology decided to meet the expectations half-way by modifying the rules of the Special Economic Zones so as they meet the evolving economic trends. The new regulations, which have cancelled local limitations, will provide incentives to both Polish and international investors, especially those who are small and medium-sized.
Polish Investment Zone Report – 2018: https://www.paih.gov.pl/files/?id_plik=33704
The most important institution in charge of promoting investments and for providing hands-on support to investors in Poland is the PFR Group (Polish Development Fund) and its members such as Polish Investment and Trade Agency (PAIH) or Polish Agency for Enterprise Development (PARP)
The Polish Investment and Trade Agency (PAIH) works to increase the inflow of investments to Poland and the outflow of Polish FDI. It also does it best to intensify the Polish exports. Supporting entrepreneurs, the Agency assists in overcoming administrative and legal procedures related to specific projects as well as helps to develop legal solutions, find a suitable location, reliable partners and suppliers.
The Polish Agency for Enterprise Development (PARP) is involved in the implementation of national and international programmes financed from the EU structural funds, state budget and multiannual programmes of the European Commission. As a key authority responsible for creating a business-friendly environment in Poland, PARP contributes to the creation and effective implementation of the state policy related to enterprise, innovation and staff adaptability. Pursuant to the principle “Think Small First”, in all its activities the Agency puts a particular emphasis on the needs of the SME sector.
Ministry of Enterpreneurship and Technology: https://www.biznes.gov.pl/en
Poland is a promising country for investors. International reports describe the Polish economy as a safe for business environment and long-term planning with a low risk of financial crisis, offering investment opportunities in connection with the modernization of infrastructure and introduction of modern technologies in the enterprise. In times of globaleconomic crisis Poland has strenghtened its position, not onkly in the region of Central and Eastern Europe but also all over the Europe. Over the last decade Poland has been steadily improving its business environment and competitiveness of the economy. The latest ‘Doing Business 2018 report’ launched by the World Bank Group ranked Poland 27th place out of 190 economies worldwide in terms of ease of doing business. Poland is ranked among the top performers in the Europe and Central Asia regions and is also the leader among new European Union member states in Central Europe.