We encourage Singapore's tech companies to invest in Poland

Within the ASEAN bloc of nations, Singapore is by far the EU's largest partner with a total bilateral trade in goods of €53.3 billion (2017) and in services of €44.4 billion (2016). The trade agreement with Singapore (FTA) will remove nearly all remaining tariffs on certain EU products, simplify customs procedures and set high standards and rules. It simplifies trade in goods like electronics, food products and pharmaceuticals, while stimulating green growth. It opens up the market for services like telecommunications, environmental services and engineering. It also includes a comprehensive chapter on trade and sustainable development, setting the highest standards of labour, safety, environmental and consumer protection, as well as strengthening joint actions on sustainable development and climate change (more about the FTA). On the other hand, Singapore is also the number one location for European investment in Asia, with investment between the two growing rapidly in recent years: bilateral investment stocks reached €256 billion in 2016. The Investment Protection Agreement signed alongside the FTA, contains all aspects of the EU's new approach to investment protection and its enforcement mechanisms. It will ensure a high level of investment protection, while safeguarding the EU's and Singapore's rights to regulate and pursue public policy objectives such as the protection of public health, safety and the environment

The Polish Investment and Trade Ageny's representatives, including heads of Singapore-based trade office's and Direct Investment Dep.'s took part in "The EU-Singapore Free Trade Agreement – What would it mean for your business" conference. They also encouraged a few Singaporean tech companies to invest in Poland during scheduled meetings.

"Poland has already established itself as a popular destination for R&D centres of many global leaders in key high-tech industries. This is inter alia due to the availability of young, skilled and well-educated workforce, low tax rates, recognized technological universities, cost competitiveness and R&D incentives. Since 1st January 2019 Poland offers plenty of support instruments for investors conducting R&D activity: R&D tax relief, Innovation Box, governmental R&D grants as well as several programmes co-financed with EU funds. We would like Singapore-based tech companies to benefit from the new law and do business in Poland" - Magdalena Smolak, head of PAIH trade office in Singapore, argues.

She explains that the R&D tax incentive in CIT entitles taxpayers to make additional deduction of the expenditures related to R&D activities from the tax base (up to 150%). "Poland’s Innovation Box complements the existing tax preference system for innovative activities and introduces a preferential 5% tax rate of qualified income from qualifying intellectual property rights (instead of 19% tax rate). Polish intellectual property rights catalogue is one of the broadest worldwide and the reduced 5% tax rate is one of the lowest of all developed countries. Above forms of aid combined with a governmental programme of grant aid for R&D projects make Polish RDI environment unique and extremely beneficial for investors" - Smolak says.

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Interested in doing business in Poland?

Contact our Direct Investment Dep.: invest@paih.gov.pl

or the Singapore-based office: magdalena.smolak@paih.gov.pl.