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Investor Presentaiton

Attracting new investment Over the past few years, the Czech Republic has significantly increased its focus on both green field investments and the expansion of existing investments. It currently has the most positive attitude to incoming investors in its history. Investors can obtain the following financial benefits: ― investment incentives - tax holiday cash grants; subsidies from EU funds - cash grants; R&D tax allowances; ― education tax allowances. All benefits are provided according to the law and transparency rules, which are in compli- ance with EU regulations. In this respect, some measures have been redesigned further to a change of EU rules in 2014. EU regulations have generally become stricter and to a certain extent limit the granting of incentives by indi- vidual member states. The Czech government responded to the new rules with an amend- ment to the Czech Act on Investment Incen- tives, effective since May 2015. The aim of the last amendment is to increase the attractive- ness of investment incentives for investors and to reduce the impact of the new EU rules on them. The information below is based on the new legislation. Investment incentives Forms of support Incentives are provided in the following forms: corporate income tax relief for up to 10 years (tax holiday); employment subsidies in the form of cash grants for job creation and training (only available in regions with high unemployment rates); ― cash grants for strategic projects; availability of land at discounted prices; exemption from real estate tax in selected industrial zones. Main conditions The main conditions for granting investment incentives differ depending on the supported activity. Manufacturing industry: establishment of a new manufacturing plant, or expansion of an existing plant, including its modernization and diversification of product portfolio; ― minimum investment in tangible and intangible assets of CZK 100 million 24
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