Act on Investment Incentives

(Act No. 565/2001 Coll. on Investment Incentives and amending and supplementing certain other acts)

This Act regulates special conditions of provision of individual state support for development of regions in form of investment incentives as well as types of the investment incentives, process and operation of state administration authorities and the National Labour Office at provision of the investment incentives and supervision upon their use.

The investment incentives mean a state support for initial investments and new working places created in connection with these investments, which is provided for procurement of tangible and intangible investment property required for introducing a production or commencement of provision of services, or for extension of a production capacity, or extension of services' provision or for purchase of an enterprise in one of the following forms:

(a)

corporate income tax relief under a special regulation,

(b)

contribution for creation of a new working place under a special regulation, and

(c)

contribution for requalification of employees employeed in a newly created working positions under a special regulation.

The Act further stipulates the following conditions for provision of investment incentives:

(a)

construction of a new production capacity or service capacity or modernisation of existing production or services,

(b)

using of specified amount (at least SKK 400,000,000) for procurement of investment property (whereas at least half of the total value of investment has to be financed from own resources of a person receiving state support),

(c)

achieving certain minimum amount of sales from the business activity for which the incentives have been provided (at least 80%),

(d)

time period in which the investor is obliged to re-invest the amounts determined for procurement of the investment (not later than 3 years from the date of issue of the decision on granting of investment incentives).

The application should be submitted to the Ministry of Economy of the Slovak Republic. There is no legal title to claim for provision of the investment incentives.

In connection with the Act on Investment Incentives, also the Income Taxes Act as well as the Act on Employment have been amended.

This Act is in force from 1 January 2002.

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