Investors have only a few weeks to submit applications for more favourable incentives

The planned amendment to the Investment Incentives Act and the new programming period for aid from EU Structural Funds were the topics presented by representatives of CzechInvest and the Ministry of Industry and Trade during the Investment Support Now and in 2014 conference, which took place in Prague on 12 December. Nearly one hundred entrepreneurs, investors and other conference participants were familiarised with the consequences of the European Commission’s new rules for regional aid, which will bring to the Czech Republic a significant lowering of the ceiling of state aid for investments.

“Nevertheless, companies still have a chance to submit applications for investment incentives under the current rules,” says Marian Piecha, CEO of CzechInvest. “In order for the Ministry of Industry and Trade to process their applications before the new rules come into force, they must submit them no later than the end of January 2014 in the case of new projects, or at the end of February, beginning of March 2014 in the case of expansions of domestic companies and firms already established in the Czech Republic.”

The European Commission’s new rules will come into force on 1 July 2014, by which time the Czech Republic must also harmonise its legislation. An amendment to the Investment Incentives Act is therefore being prepared. The government wants to include in the draft, which is now approximately three-quarters complete, a reduction of the contribution from aggregate wages and a property-tax exemption, for example. The draft also provides for simplified administration.

The coming year will also bring forth a new programming period for aid from European Union Structural Funds, from which EUR 21.9 billion has been prepared for the Czech Republic for the period from 2014 to 2020. The Operational Programme Enterprise and Innovation for Competitiveness 2014-2020, which is focused especially on support for competitiveness of the knowledge economy, cooperation between the research and development sphere and innovative firms, and use of financial instruments as new forms of support, will have EUR 4 billion available from the total amount.

For more information please contact the CzechInvest Press Centre

Adéla Tomíčková, spokesperson, phone: +420 296 342 832, adela.tomickova@czechinvest.org