ANNOUNCEMENT 01 May 2015In May 2015, the government of the Czech Republic announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
The amendment of the Investment Incentives Act:
Brochure on the Act:
On 1 May 2015, the Czech Republic introduced amendments to its act on investment incentives.
With the new provisions, higher subsidies were made available for strategic investments in the form of "cash grant for the acquisition of long-term tangible and intangible assets (...) up to 10 percent of total eligible costs (...) but to a maximum of CZK 1,500,000,000 CZK '61.49 million USD' in the case of a strategic investment project in the area of manufacture and a maximum of CZK 500,000,000 'ca. 20.5 million USD' in the case of a strategic investment project in the area of technology centres". These shall be defined as:"
Also, the new revisions allowed for an exemption from tax on immovable property in concessional industrial zones for a period of up to 5 years.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
The list of affected trading partners is based on the 2012 FDI flows data from UNCTAD.