Investment Incentives and their End for the Manufacturing Industry?
Are you planning investments in production in the coming months? If so, it is a good time to consider whether to apply for an investment incentive now. If you file an application before the amendment to the Act on Investment Incentives becomes effective, the existing conditions will apply.
Investment incentives will have new rules
On Wednesday, 24 July 2019, the Senate approved the governmental proposal of an amendment to the Act on Investment Incentives. The amendment can be expected to come into force approximately in October 2019.
The amendment to the Act on Investment Incentives is expected to limit investment incentives for other than “supported regions” with higher unemployment. Support will be directed primarily to projects with higher added value (projects with the condition of a higher ratio of employees with higher salaries and university education, by cooperation with universities and research organisations, or investments in research and development projects).
Government approval will be needed
An important new aspect of the system of awarding investment incentives is the condition of the government’s approval of all the applications with respect to the benefit brought to the region by the investment. A positive change concerns the cancellation of the condition of creating job openings for investments in manufacturing, and the halving of the limits of general conditions for small and medium-sized enterprises. Technological centres and centres for strategic services will attract more intensive support in the form of cash support of job openings in all regions or by decreasing the limits for new job openings for strategic investments.
The article is part of dReport – August 2019, Tax news; Grants and investment Incentives.