Amendment to the Act on Investment Incentives
The new legislative act takes into account the comments presented by the Confederation of Industry.
Czech president Miloš Zeman has signed an amendment to the Act on Investment Incentives and related acts on Wednesday 1st April. The proposal has been approved in the wording supported by the Confederation of Industry whose representatives have taken part in the final shaping of the legislative text. The law amendment will come into force on 1st of May 2015.
The aim of the amendment’s authors has been the elimination of the negative impacts of the new regulations and an improvement of the latest provisions that have created new barriers to investment, i.e. to make the investment incentives system more attractive.
What changes the law amendment has brought about?
· Obligation to finance at least one part of the project from the region’s own resources
· Extension of the regions to which the support for the job creation a requalification will be given. The support will be extended to the regions where the unemployment rate is at least 25 percent higher than the Czech Republic average. Hitherto, the support has been given only to regions where the unemployment rate was at least 50 percent higher than the Czech average.
· Tax discount for the current investors in case of new investment will be newly based on the average amount of the three last tax years.
· Obligation to create and fill at least 20 new jobs in the production sphere.
· Redefinition of the investment incentive‘s wording - as investment incentive could be regarded a production expansion, production diversification or an essential production change as well.
· Enhancement of the support for the long-time fixed and non-fixed assets‘ creation (from 5 to 10 percent of the total eligible costs)
According to the Czech Statistical Office, more than 160 000 new jobs have been created and projects with a total investment of more than 25 billion euros have been seconded during the investment incentives system‘s existence till 2014.
Czech president Miloš Zeman has signed an amendment to the Act on Investment Incentives and related acts on Wednesday 1st April. The proposal has been approved in the wording supported by the Confederation of Industry whose representatives have taken part in the final shaping of the legislative text. The law amendment will come into force on 1st of May 2015.
The aim of the amendment’s authors has been the elimination of the negative impacts of the new regulations and an improvement of the latest provisions that have created new barriers to investment, i.e. to make the investment incentives system more attractive.
What changes the law amendment has brought about?
· Obligation to finance at least one part of the project from the region’s own resources
· Extension of the regions to which the support for the job creation a requalification will be given. The support will be extended to the regions where the unemployment rate is at least 25 percent higher than the Czech Republic average. Hitherto, the support has been given only to regions where the unemployment rate was at least 50 percent higher than the Czech average.
· Tax discount for the current investors in case of new investment will be newly based on the average amount of the three last tax years.
· Obligation to create and fill at least 20 new jobs in the production sphere.
· Redefinition of the investment incentive‘s wording - as investment incentive could be regarded a production expansion, production diversification or an essential production change as well.
· Enhancement of the support for the long-time fixed and non-fixed assets‘ creation (from 5 to 10 percent of the total eligible costs)
According to the Czech Statistical Office, more than 160 000 new jobs have been created and projects with a total investment of more than 25 billion euros have been seconded during the investment incentives system‘s existence till 2014.
- Radim Klekner
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section Aktuálně