North-West part of Poland

LOCATION

ONE OF THE BIGGEST SEZ IN POLAND  Established: 1997  Subzones: 42  Area: ha  Permits: 274  Job created:  Infrastructure expenditure by SEZ:  € 20 million  Investment expenditure (already spent): € 1,2 billion  Declared investment expenditure: € 1,2 bilion  CIT TAX EXEMPTIONS

KPMG report 2014 – cooperation with SEZ

Public aid Available public aid  Big companies – 25%  Medium companies – 35%  Small companies – 45% It means out of every milion invested in Kostrzyn-Slubice Special Economic Zone investor can receive up to 0,45 million back.

Definition of the size of the company Big company: Employment – 250 or more Annual turnover – more than 50 million € Annual balance – more than 43 million € Medium company: Employment – from 50 to 249 Annual turnover – from 10 million € to 50 million € Annual balance – from 10 million to 43 million € Small company: Employment – less than 50 Annual turnover – less than 10 million € Annual balance - less than 10 million €

Special Economic Zone as Tax Heaven CIT = 0%* Corporate Income Tax *Unless public aid is consumed. "The hardest thing in the world to understand is the income tax." A.Einstein So we give the investor an opportunity NOT to pay it

Tax Heaven – how does it work? € € land € buildings € equipment

Tax Heaven – how does it work? Assumptions:  Size of the company: small  Public aid: 45% - € Year Income0,7 mln0,84 mln1 mln1,2 mln1,5 mln CIT (19%)- 0,13 mln- 0,16 mln- 0,19 mln- 0,23 mln- 0,29 mln Public aid+ 0,13 mln+ 0,16 mln+ 0,19 mln+ 0,23 mln+ 0,29 mln CIT in SEZ00000 Savings0,13 mln0,16 mln0,19 mln0,23 mln0,29 mln If the summary of the public aid is higher than 1,8 mln €, company is obliged to start paying CIT 19% tax.

Example of the subzones

Contact person Krzysztof Babij Senior Project Manager Skype: babij.krzysztof Mobile: Language: English Graduate of the Westpomeranian Business School on the direction: international business and Lessius Hoge School in Antwerp on the direction: European Business Studies. He has also the title of the licensed real estate broker. In Kostrzyn-Slubice Special Economic Zone he has been working since 2005 in Marketing Department and mainly responsible for English speaking investors. He took a part in hundreds of negotiations with the investors and many of them decided to open the factory in Kostrzyn-Slubice SEZ. Privately he involves in social activities by being the Vicepresident of one of the Polish football club in lubuskie region – MKS Polonia Słubice.