On 7 June 2019, the Chamber of Deputies approved the government proposal of an amendment to the Act on Investment Incentives, Bulletin of the Chamber of Deputies no. 298 of 8 October 2018. The amendment can be expected to come into force approximately in September 2019. The approved amendment will represent the basic framework of conditions for awarding investment incentives. Most of the general conditions for granting investment incentives will be flexibly regulated by a governmental decree based on the economic situation and the needs of the labour market.
Following the amendment to the Act on Investment Incentives, support will be directed primarily to projects with higher added value, which should be ensured in particular by 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. These conditions should not apply to projects realised in the “supported regions” with higher unemployment.
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.
Investment plans submitted before the effective date will be subject to the existing conditions for obtaining an investment incentive.
The article is part of dReport – June 2019, Tax news; Grants and investment Incentives.
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