Amendment to the Investment Incentives Act being prepared
The system of investment incentives under Act No. 72/2000 Coll., i.e. state aid for larger investment projects in the form of tax credits, should change significantly from mid-2019.
The proposed amendment to the Act is already in the legislative process and on 26 September 2018 was approved by the Government of the Czech Republic. Therefore, if a company is planning new investments under the current rules, the time for applying for an incentive is reduced.
Like before, the general conditions should be the acquisition of tangible and intangible assets and the creation of new jobs. Investments should continue to be made in activities that increase in value through the use of qualified labour or advanced technology, i.e. activities with higher added value.
The proposed amendment implies that the law should be more focused on supporting higher value-added projects, as has long been advised, but the key change concerns the support system itself. This should no longer be determined by law. The parameters for the individual investments should be approved by the Czech government and implemented by a special implementing legal regulation. Therefore, if the amendment is approved in this form, the values resulting from the general conditions will be determined by the Government of the Czech Republic individually by regulation, depending on the region, the type of investment and the size of the beneficiary. If the Government of the Czech Republic does not grant its approval, the Ministry of Industry and Trade will not be able to provide these projects with an investment incentive.
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