IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 12 Jan 2018 | Removal date: open ended
Still in force

Tax or social insurance relief

Regulation 1/2018 by the Ministry of Industry amends one of the three criteria to provide investment-related income tax reduction: the third criterion for the tax reduction was "high local content" (art. 3 of government regulation 18/2015, see Related State Acts). This criterion has now been clarified to having "a local content of raw materials, auxiliary materials, or machines of 20% or more" (art. 2(1)c; own translation). Given that 20% represents an objectively low threshold for local content, this criterion amendment is likely to increase the eligibility for the income tax reduction. Hence, this intervention has been classified as trade-distorting.

The regulation came into force on 12 January 2018.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

016 Stimulant, spice & aromatic crops
019 Forage; natural rubber; living plants; raw vegetable materials
021 Live animals
029 Other animal products
031 Wood in the rough
032 Non-wood forest products
041 Fish, live, not for human consumption
042 Fish live, fresh or chilled for human consumption
043 Crustaceans, live, fresh or chilled
044 Molluscs live, fresh or chilled
120 Crude petroleum & natural gas
172 Coal gas, water gas, producer gas & similar gases (excl. fuels)
212 Prepared & preserved fish, crustaceans, molluscs
221 Processed liquid milk, cream & whey
222 Other dairy products
236 Cocoa, chocolate & sugar confectionery
239 Food products n.e.c.
261 Natural textile fibres prepared for spinning
262 Man-made textile staple fibres processed for spinning
263 Textile yarn & thread of natural fibres
264 Textile yarn & thread of man-made filaments or staple fibres
265 Woven fabrics of natural non-cotton fibres
266 Woven fabrics (except special fabrics) of cotton
267 Woven fabrics of man-made filaments & staple fibres
268 Special fabrics
271 Made-up textile articles
272 Carpets & other textile floor coverings
273 Twine, cordage, ropes & cables; articles thereof
279 Textiles n.e.c.
281 Knitted or crocheted fabrics
282 Wearing apparel, except fur apparel
291 Tanned or dressed leather; composition leather
292 Luggage & handbags; saddlery & harness; other leather articles
293 Footwear other than sports footwear
294 Sports footwear, except skating boots
295 Other footwear
296 Parts of footwear
311 Wood, sawn or chipped lengthwise, sliced or peeled, of a thickness exceeding 6 mm; railway or tramway sleepers (cross-ties) of wood, not impregnated
313 Wood, rough or treated; railway sleepers; poles
319 Other products of wood, cork or straw
321 Pulp, paper & paperboard
327 Registers, notebooks, diaries & similar articles
332 Tar distilled from coal, lignite or peat; other mineral tars
333 Petroleum oils & oils of bituminous materials, other than crude
334 Petroleum gases & other gaseous hydrocarbons, except natural gas
335 Petroleum jelly, coke or bitumen; paraffin wax & similar products
336 Radioactive elements or residues & prodcuts containing them
337 Fuel elements (cartridges), for or of nuclear reactors
341 Basic organic chemicals
342 Basic inorganic chemicals n.e.c.
343 Tanning or dyeing extracts; tannins; colouring matter n.e.c.
345 Miscellaneous basic chemical products
346 Fertilizers & pesticides
347 Plastics in primary forms
348 Synthetic rubber & mixtures thereof in primary forms
384 Sports goods
389 Other manufactured articles n.e.c.
411 Basic iron & steel

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