On 14 September 2023, the amendment to the Investment Incentives Act, which we have already informed you about earlier, was approved in the Chamber of Deputies in the second reading.

The aim of the amendment is to simplify the process of granting and obtaining investment incentives, when all applications for the promise of an investment incentive will no longer be submitted to the government for approval. This will remove the possible “arbitrariness” of the government regarding this matter and taxpayers will again gain legal certainty that they should be explicitly entitled to the incentive once the required conditions are met.

However, the government will continue to decide on strategic investment actions under the Investment Incentives Act.

According to the transitional provisions, the new rules should will probably only apply to investment incentives requested after the amendment takes effect.

The actual effectiveness depends on the legislative process; the amendment is currently scheduled for consideration in the 3rd reading in the Chamber of Deputies at the 76th session (from 28 September 2023). If the process goes smoothly, it will be discussed by the Senate of the Czech Republic and then signed by the President. The general conclusion is that the amendment may be in force by the end of this year already.

Author: Petr Němec, Martin Hahn