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| September 14, 2021
In August 2021, the Ministry of Industry and Trade (MoIT) presented a draft government decree to the Czech government, which changes government decree no. 221/2019 Coll., on performing some stipulations of the act on investment incentives, as amended by government regulation no. 514/2020 Coll.
The document has already gone through the internal comments procedure. The amended decree is planned to take effect from 1 January 2022, and for all proceedings not finally completed as of 1 January 2022, the original regulation would apply.
In the explanatory memorandum, the Ministry of Industry and Trade notes that according to a number of economic analyses, the problem of low added value persists in Czech economy and focus on innovations of lower orders compared to advanced economies, which focus on more knowledge-intensive activities. The aim of the amendment is to support projects in the processing industry with high added value.
The amendment brings the following changes in strategic investments:
We will keep you informed about further progress of the approval process. If you are considering new projects targeting fields with medium of high technological intensity, it is worth considering the use of investment incentives under the new rules. In this way, you can obtain not only indeterminate and indirect support in the form of “tax credit” for the following 10 years (it derives from increasing the tax base compared to comparative periods), but more importantly direct support of your investments based on an agreement with the Ministry of Industry and Trade.
We will be happy to assist you in this area (from the preparation of the intention to the actual drawdown) based on our extensive experience with investment incentives.