The importance of Foreign Direct Investment (FDI) for the Polish economy in the transition period cannot be underestimated. At present the main arguments for attraction of FDI stress the importance of stable high FDI inflows for a sustained economic growth and modernisation of the Polish economy as it is believed that foreign investment help to increase the productivity of economic operations and the local workforce, encourage employment as well as stimulate innovation process and technology transfer. The Polish success in attracting FDI in the past seems to come to an end, as the main driving force for the last few years was the privatisation process. As the privatisation process in Poland is almost completed a sharp decline in the FDI inflows in Poland in about two years' time is to be expected. At the same time tax breaks in the Special Economic Zones which have attracted a significant volume of foreign investment are to be scaled back considerably at the end of 2001. Moreover, tax competition between the Central and Eastern European countries for foreign direct investment which has been strong in the last decade will become even more intense in the near future. Therefore, it seems inevitable for the Polish authorities to introduce changes in the treatment of the foreign direct investment in the Polish tax code and turn their focus towards attracting FDI with other means. Poland should define its position as an attractive location for all multinational companies which wish to operate in the Central and Eastern Europe. Interesting tax regulations concerning co-ordination, distribution and service centres in the Netherlands and Belgium and headquarters and logistics centres in France may be used in that respect as an example for creating successful tax regulations in attracting foreign direct investment in Poland. The paper presents recommendations for the improvement of the Poland's international location competitiveness for FDI. ; 74