A new law on investment incentives approved
Investment incentives will be applicable also for research and development companies and strategic services, such as the software development. The period during which they can use the tax credit is also extended from the existing five to ten years. ...
Investment incentives will be applicable also for research and development companies and strategic services, such as the software development. The period during which they can use the tax credit is also extended from the existing five to ten years. These are the main changes proposed by the Ministry of Industry and Trade in an amendment to the Act on Investment Incentives, adopted by the Government. The amendment also introduces a new concept of a strategic investor who will be able to get a direct investment subsidy.
The purpose of this amendment is to attract to the Czech Republic firms aimed at intensive technologies or services, such as development laboratories of large companies, or a major software center. More attractive system of investment incentives is also included in strategy of international competitiveness of the Czech Republic, which was recently approved by the government, which aims to move the Czech Republic among the most competitive countries in the world.
Basic parameters of the investment incentives remain even after the amendment preserved - ie the company can continue to receive up to 40 percent of their costs for expansion into the Czech Republic back in the form of investment incentives.
To get investment incentives manufacturing plants have to invest in the Czech Republic at least a hundred million Czech crowns or only 50 million, if they decide to go into a region with high unemployment.
Companies that decided to build or expand their technology center in the Czech Republic must create at least 50 new jobs and deposit into their business at least 10 million Czech crowns, till then they can obtain investment incentives. In the sector of strategic services they must create at least 40 new jobs when building a software development center, or at least 100 new jobs if they engaged in other activities.
News
The most popular legal form of business in the Czech Republic are limited liability companies, their share on the business base is growing continuously. More than 306,000 Czechs and almost 174,000 fo
Roughly 40 % of the Czech companies increased their exports in the past six months. A total of 39 % their exports stagnated in this period while 21 % lowered their exports.
According to an HSBC Ban