ANNOUNCED AS TEMPORARYNo
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.
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