Tag: Investing in Poland
The Tax Ordinance will be supplemented with provisions that will make it easier to perform tax audit to foreign entities established in Poland – according to the draft amendment to the Tax Ordinance.
According to the Ministry of Finance, currently regulations often do not allow for the efficient initiation of audit process to taxpayers who are not Polish residents or are not having fixed establishments in Poland.
The current legal situation regarding tax audit shows that the audited is the taxpayer. In the case of a foreign company the taxpayer will be natural or legal person being not resident or established in Poland. “This results in practice with many problems associated with the initiation of control caused mainly by regulations of delivering notices and representation “- explains the Ministry of Finance.
Trouble concern cases where the facility does not have a legal form, and consequently – its representation on the territory of Poland. As a result, the tax inspection authorities have problems with checking the taxation of their business.
The Ministry of Finance is planning to enter an additional provision that allows (in a situation where audit concerns to fixed establishment of a foreign entity) showing the authorization to carry out tax audits and identity cards of the person who directs, supervises or actually represents the activities carried out on the territory of Poland. It will not be necessary to present these documents to the taxpayer.
Anticipated changes of a draft amendment to the Tax Ordinance was adopted by the Council of Ministers in March 2014
Regulations concerning the inspection of establishments foreign entities come into force 3 months after promulgation in the Official Journal.
Amazon’s recent decision to open three distribution centres in Poland, creating 6,000 full-time and up to 9,000 part-time jobs, shows the country’s attractiveness as a base for logistics activities.
The past decade’s expansion of the EU to take in a further 94 million consumers has changed the logistics map of Europe. Hundreds of billions of euros of structural and cohesion funds are being spent to weave the new member states into the EU’s infrastructural fabric, providing better routes to market. Poland has a crucial importance in this new logistics geography. Located at the crossroads of Europe, between western and eastern Europe, between Scandinavia and the Balkans, with ice-free Baltic ports; standing astride trunk trans-European road and rail networks, Poland has developed into the region’s most significant logistics hub.
Special Economic Zones in Poland – increasing the investment attractiveness of Poland and the opportunity to use the entire area of SEZ is the main goal of SEZ functioning extending to 2026, the Council of Ministers adopted on July 23rd 2013, 14 regulations implementing this provision.
Special Economic Zones (SEZs) are designated areas within Poland established to create a more favorable business environment for investors. There are currently 14 SEZs located all over the country, offering tax incentives and a well-developed infrastructure. The income from business operations conducted within a SEZ may enjoy a corporate income tax (CIT) exemption.
The 2014 edition of Warsaw Business Journal Group’s Investing in Poland project has been launched. The project involves an annual publication scheduled to be launched at a conference on September 17, as well as an Investment of the Year competition and a gala which will be held in October.
The project is organized by Warsaw Business Journal Group in cooperation with the Polish Information and Foreign Investment Agency (PAIiIZ), PwC, Bank Pekao and CBRE as well as eight chambers of commerce: the British, German, Spanish, French, Belgian, Dutch, Chinese and Indian.
Investing in Poland project consists of:
1. The Investing in Poland 2014 publication – an annual investment guide published since 2009. The fifth edition of the Investing in Poland publication will come out in September 2013.
2. Conference – WBJ will hold a conference in late September marking the launch of the publication. Discussion panels featured at the conference will examine investment conditions and incentives.
3. Competition and Gala – First launched in 2012 in cooperation with major chambers of commerce and industry. The competition will award the Investment of the Year Award. This year the competition has been expanded: there will be three awards instead of one: Small Investment of the Year, Medium-Sized Investment of the Year and Large Investment of the Year.
The main aim of the Investing in Poland project is to distinguish the most important foreign investments in Poland as well as show Poland’s potential for investors.
Investing in Poland 2014 is the fifth edition of the publication. It presents all regions of Poland as well as major Polish cities and their potential for investors. It also provides information on all the special economic zones in Poland. Since 2011 the publication includes a special Trendbook section portraying the most prominent and interesting trends in the Polish economy.
In addition to the English version, the publication will be translated into Chinese and Spanish, two of the top three most-spoken languages in the world.
The conference will feature the official launch of the Investing in Poland annual publication, as well as two panel discussions. The first will focus on investing in Poland, in particular on what cities and regions are doing to attract investors, and the other on outsourcing as an investment trend.
In the weeks following the conference WBJ will present the profiles of each nominee and finally the top investment in each category will be selected by a jury. The three top investments, assessed on the amount invested, number of jobs created, innovativeness and sustainability will be awarded at the October gala.
Last year announced greenfield projects or greenfield investments, the investments from the ground up, which amounted to 11.5 billion dollars, in terms of value Poland took second place in the European Union. Before Poland, was only the Great Britain, where the value of such projects amounted up to 41.2 billion dollars. Right after Poland placed Spain (11.4 billion dollars.), Romania (9.9) and Germany (8.5).
In the annual UNCTAD survey (United Nations Conference on Trade and Development) the investors were asked about the most attractive place to locate projects for 2013-2015 Poland placed 4th in Europe and 14th in the world. Poland was one of the five European countries classified as one of twenty locations in the world to be the most attractive for investments. Poland was in that group the only country from Central and Eastern Europe.
In our part of Europe Poland remains the absolute leader in terms of the cumulative value of incurred expenditures by foreign companies. The expenditures amount to 230.6 billion dollars. Czech ranked second with is 136.4 billion dollars. The third place was taken by Hungary (103.6 billion dollars.), followed by Romania (74.2 billion), Slovakia (55.8 billion) and Bulgaria (49.9 billion).
Investment attractiveness of Poland was confirmed at the annual survey conducted by the 16 German bilateral chambers of commerce and industry. They questioned 1623 companies with foreign capital that invested in our region. Poland this year is a leader of this ranking for the first time.
Government Pension Fund Global, known as GPFG, since the early 90s is investing the surplus from the country’s oil exports on the polish market, which shows the stability of our country.
Currently GPFG assets reach 3.8 billion NOK, or about 2.1 billion PLN. According to the SWF Institute, this makes GPFG the largest investor of its type in the world. A growing portion of its capital this fund invests in Poland. At the end of 2012, the Norwegian pension fund has shares in 50 companies of the Polish Stock Exchange. A year earlier, the fund had shares of 48 Polish companies, and in 2010 of 41 companies. In 2007 the GPFG did not invest in Poland yet. The value of shares of the Polish companies GPFG had at the end of 2012 reached 6.9 billion NOK (3.9 billion PLN counting the average exchange rate of the NOK in 2012) and it is 17.4 percent more than a year earlier.
The experts stated that from the GPFG point of view, the shares of polish companies are very attractive, because the companies operate in a distinctive stability of the macroeconomic environment, and are relatively low-priced. They do not have the growth potential such as Turkish companies, but are much less risky and this convinces Norwegians. GPFG must take care not only about profits, but also about the safety of investments, and from the Norwegian perspective Poland is safer than many other developing countries. Therefore, Poland is an attractive market.
Interest on the part of the Norwegian pension fund is a strong signal to investors and other economies that Poland is still a very attractive investment market. Despite a weak first quarter, Poland will have a chance to rebound relatively quickly, because our main trading partner – Germany, is rebounding currently.
Additionally our national economy considering European conditions is a large and absorptive market driven by a domestic demand. Poland is still perceived as a dynamic economy, where entrepreneurs are flexible and can easily adapt to new economic conditions. Also it should be remembered that after 2014, Poland will receive a further financial support from the European Union, which naturally will lead to increased investment in the energy sector and infrastructure, and such companies are a major percentage of all companies that make up the WIG20 (Warsaw Stock Exchange).
At the end of 2011 Poland had just over 24,9 thousand of foreign companies in Poland, an increase of 7,9 percent than a year before – stated GUS (Central Statistical Office).
In 2011 alone, the total of 1533 foreign companies was established in Poland (mostly funded from the ground up) which turns up to be the best result since 2008.
What is specific to 2011, up to 93 percent of new foreign enterprises established in Poland are being micro companies hiring no more than 9 employees. Most of them started in the trade sector. In the result the declared foreign capital of all companies is 51 percent lower than in 2010 and totaled to around 930 million PLN.
The experts concluded that in addition to the spectacular investment, widely reported by the media, Poland has a pretty wide stream of small businesses. Even less well-known entrepreneurs, mainly from Germany, Scandinavia, and Italy, are seeing the potential in Poland to sell their products. Against the background of euro zone being in recession and weaker consumer moods Poland appears to be stable and large market. Altogether, at the companies with the end of 2011, the companies with foreign capital employed approximately 1.57 million people (about 3.2 percent more than in 2010.
Nearly half of the business entities invested 73.7 billion PLN total, meaning the 19.6 percent increase.