6th June 2014

Czech state wants to change investment incentive system

As public support from EU is due to decrease from July in all regions except Prague from 40 % to 25 % Czech Ministry of Commerce plans to introduce new investment incentive system to keep Czech Republic’s pace with others in region (Slovakia, Hungary, Bulgaria, Poland). Amendment of the respective act introduces special Economic Zones where support for one created workplace should be up to 300 000 crowns. Companies should be able to apply tax exemption on plots in these zones up to the period of 10 years. List of these zones should contain approximately 5 names but the list is subject to government approval. Among the zones could be these localities: Ostrava-Mošnov, Most-Joseph, Holešov, Dukla-Havířov a Horní Tošanovice. Investment incentives should also apply for data centers and call centers. The act will also ease the requirements for technology centers and strategic service centers to qualify for incentives. Number of regions with material support for new workplaces and requalification will grow and subsidy for long-term tangible and intangible assets will increase from 5 to 12,5 % of costs. Investments above 100 million Euro will be subject to special authorization scheme from European Commission.

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Members of the American Chamber of Commerce in the Czech Republic