Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 7

Investor compliance with the laws and regulations in the home countries of their investments should be part of their regulators' due diligence process. They, in turn, should be treated equitably in the home country of their investments especially in respect to their rights to shareholder benefits and concessionary arrangements under double tax agreements.

1.	Do domestic regulators monitor the procedures in place at their locally based cross-border custodians to assure compliance with the laws and regulations of the home countries of their investments?	Polish supervisory institutions that oversee custodian banks include the Securities and Exchanges Commission and the Banking Supervision Commission. These bodies do not oversee procedures carried out by custodian banks relating to foreign investments and whether they comply with regulations in force in the country where investment is carried out. The role of Polish supervisory bodies as regards these activities extends as far as co-operation and the exchange of information with their foreign counterparts.
2.	What are the areas (e.g. benefits, investor compensation) where foreign investors are not treated in the same way as local investors?	In essence, Polish law treats foreign investors in the same way as it treats local investors.
3.	Can sales proceeds and income be repatriated without any restrictions?	There are no restrictions on the transfer of profits or income earned from the sale of securities or rights. The one exception is the transfer of profits and income from the sale of short-term securities or derivatives, if these instruments are not traded on the Warsaw Stock Exchange, the Polish Financial Exchange, the Central Table of Offers or the commodities exchanges. For such transactions a foreign currency exchange permit is required.
4.	Are double tax agreements simple to apply, and do foreign investors receive promptly their full entitlement to dividends and interest payments?	As regards the taxation of income earned from securities trading and benefits, the provisions of double taxation avoidance agreements may be applied where a foreign investor provides the appropriate proof of residency. Proof of residency is a declaration issued by the appropriate tax authorities certifying the residency or foreign registration of an investor for tax purposes. If a foreign investor is unable to present such a proof of residency, he is taxed at the same rate as a local investor.