Key investment incentives Jacek Kachel – Senior Manager Outsourcing Conference Warsaw, 11 May 2005

CELE: - analiza prawidłowości realizowanych przez Spółkę transakcji - zapewnienie poprawności kalkulacji zobowiązań z tytułu VAT - optymalizacja przepływów pieniężnych Spółki -odroczenie powstania obowiązku podatkowego -szybszy zwrot podatku VAT FORMA I CZAS REALIZACJI: - przegląd VAT może zostać zrealizowany jako: -pojedynczy projekt -stanowić część przeglądu podatkowego w szerszym zakresie - nasza praca może zostać zaprezentowana w formie memorandum, podręcznika lub prezentacji w zależności od potrzeb klienta Eligible regions based on GDP per capita against average GDP per capita in EU territory. investments

©2005 Deloitte & Touche Doradztwo Podatkowe sp. z o.o. 3 Investment incentives in Poland Regional Aid Map Level of public aid for service center All regions are eligible in Poland 50% of eligible expenses 40% in Kraków, Wrocław, Gdańsk, Gdynia, Sopot 30% in Warszawa, Poznań Eligible expenses: investment expenses, or two-year employment costs

©2005 Deloitte & Touche Doradztwo Podatkowe sp. z o.o. 4 Investment incentives in Poland Shared Service Centers in Poland Key investment incentives: Tax incentives in Special Economic Zones Government grants for employment Cash grants for investment and employment (Structural Funds) Employee training grants (Structural Funds) Local incentives (e.g. property tax exemption)

©2005 Deloitte & Touche Doradztwo Podatkowe sp. z o.o. 5 Investment incentives in Poland Shared Service Centers in Poland Who? Philips (Łódź) General Electric (Łódź) IBM (Kraków) Lufthansa (Kraków) Thomson (Warszawa) Citigroup (Olsztyn) Exult (Kraków) Tchibo (Warszawa) Why? Market economy Language abilities Educated workforce Cost of labor Established law Investment incentives

©2005 Deloitte & Touche Doradztwo Podatkowe sp. z o.o. 6 Investment incentives in Poland Sample calculation of public aid package Assumptions: Investment value = EUR 20 m New employment = 500 jobs Public aid limit = EUR 10 m Public aid available: Investment grant EUR 5,0 m Employment grantEUR 2,0 m Tax incentivesup to EUR3,0 m TOTAL EUR 10,0 m Shared Service Centers in Poland

©2005 Deloitte & Touche Doradztwo Podatkowe sp. z o.o. Tax incentives in Special Economic Zones

©2005 Deloitte & Touche Doradztwo Podatkowe sp. z o.o. 8 Investment incentives in Poland Eligible activities (since March 2005): Information Technology Research and Development Accountancy and Auditing Bookkeeping (except for tax returns) Technical Research and Analysis Call Centers Tax incentives in Special Economic Zones

©2005 Deloitte & Touche Doradztwo Podatkowe sp. z o.o. 9 Investment incentives in Poland Corporate Income Tax exemption public aid up to 50% of eligible expenses General conditions: minimum investment value EUR 100 thousand maintaining new jobs for at least 5 years Investment project must be located in SEZs For large investment any preferred site can be selected to benefit from tax incentives investment value EUR 40 m, or new employment at least 500 new jobs Tax incentives in Special Economic Zones

©2005 Deloitte & Touche Doradztwo Podatkowe sp. z o.o. 10 Investment incentives in Poland Location of Economic Zones in Poland Katowicka Warmińsko - Mazurska Starachowicka Słupska Legnicka Tarnobrzeska Suwalska Kamiennogóska Kostrzyńsko - Słubicka Wałbrzyska Pomorska Łódzka Euro-Park Mielec Krakowski Park Technologiczny Tax incentives in Special Economic Zones

©2005 Deloitte & Touche Doradztwo Podatkowe sp. z o.o. Cash grants for investment and employment

Investment grant up to 25% of eligible investment expenses (32,5% for SMEs) eligible expenses: tangible and intangible assets Employment grant up to EUR 4,000 per one new employee eligible expenses: two-year employment costs Investment and employment grants ©2005 Deloitte & Touche Doradztwo Podatkowe sp. z o.o. 12 Investment incentives in Poland

Beneficiaries: large enterprises; SMEs Investment location: all regions in Poland (including Special Economic Zones) Investment value: no minimal value eligibility Investors own share: contribution of at least 25% Investment and employment grants ©2005 Deloitte & Touche Doradztwo Podatkowe sp. z o.o. 13 Investment incentives in Poland

©2005 Deloitte & Touche Doradztwo Podatkowe sp. z o.o. 14 Investment incentives in Poland Where and when to file application: Two application rounds in 2005: (i) January (ii) June Application form available on: Completed applications along with necessary enclosures are either filed in person or sent by post to: Ministerstwo Gospodarki i Pracy (Ministry of Economy and Labor) pl. Trzech Krzyży 3/ Warszawa Investment and employment grants

©2005 Deloitte & Touche Doradztwo Podatkowe sp. z o.o. Government grants for employment

©2005 Deloitte & Touche Doradztwo Podatkowe sp. z o.o. 16 Investment incentives in Poland Government grants for employment Employment grants for new jobs related to service centers Higher amounts in case of hiring university graduates Higher amounts in case of hiring the unemployed

©2005 Deloitte & Touche Doradztwo Podatkowe sp. z o.o. 17 Investment incentives in Poland Contact: Jacek Kachel, MBA Senior Manager Public Aid Services Group phone: fax: mobile: Address: Deloitte & Touche Doradztwo Podatkowe sp. z o.o. ul. Retoryka Kraków

Deloitte & Touche Doradztwo Podatkowe sp. z o.o. Member of Deloitte Touche Tohmatsu