The Recovery Package in the context of tax changes
Following the Government announcement on the Recovery Package, the related amendment to the tax regulations was published. Below we summarise a selection of the most important changes in this area.
The Ministry of Industry and Trade has completed the development of the new Operational Programme Technology and Applications for Competitiveness (OP TAC) for the programming period 2021-2027, which will replace the existing Operational Programme Enterprise and Innovation for Competitiveness.
A total amount of CZK 81.5 billion is available under OP TAC, which will be distributed among enterprises and entrepreneurs within individual thematic areas over 6 years. The subsidy will be provided in the form of grants, financial instruments or a combination of both. Together with other support programmes, a record amount of funds is available in the new programming period for enterprises and entrepreneurs to finance their projects.
The primary aim of the funds is to mitigate the pandemic’s negative impacts, increase the productivity of Czech companies and move them up the global value chains, as well as to strengthen the Czech economy and raise the standard of living of the Czech population while addressing environmental, social and other current challenges.
The largest share of the subsidy will be allocated to areas aimed at strengthening the performance of enterprises in the field of research, development and innovation as well as their digital transformation and a shift to a low-carbon economy.
In total, there are 5 thematic areas with the following focus:
- Strengthening the performance of enterprises in the field of R&D, innovations, and their digital transformation;
- Development of business and competitiveness for SMEs;
- Development of digital infrastructure;
- A shift towards a low-carbon economy;
- More efficient use of resources.
To be in line with the EU Cohesion Policy for the programming period 2021-2027, the start of the programming period has been delayed. Therefore, it was impossible to complete the preparation of OP TAC beforehand. To gain final approval, it is still necessary to obtain the approval of the Czech Government, which is expected to happen in late September or early October, followed by the official submission to the European Commission. For these reasons, the announcement of the first calls is not expected before the end of Q1 2022.
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