Slovak Financial Law News 2004

Amendment Regarding the Foreign Trade Incentives Fund and some Measures Regarding the Preparation of Material Investments

Act No. 133/2004 Coll. amending the Act of National Council of the Slovak Republic No. 379/1996 Coll. on the Foreign Trade Incentives Fund as amended and amending Act No. 175/1999 Coll. on Some Measures Regarding the Preparation of the Material Investments and amending and supplementing certain other acts

The Act amends: (i) the Act on the Foreign Trade Incentives Fund (the ``Fund Act'') as amended, and (ii) the Act on Some Measures Regarding the Preparation of the Material Investments (the ``Material Investment Act'').

According to the Argumentative Report to this Amendment, the adoption of this Amendment is the qualification needed for the performance of the first phase of taking over of the activities of the foreign trade incentives fund (the ``Fund'') by the Slovak Agency for the Investments and Trade Development (SARIO). The Amendment introduces rules, under which the assets of the Fund can be transferred or leased to third parties. Such third parties shall be only state budgetary organisations or state contributory organisations established for supporting the development of the foreign trade. Any such disposal with the assets of the Fund shall be approved by the Administrative Board of the Fund. The lease or the transfer of the Fund property to the other persons is not permissible.

The Amendment to the Act on Material Investments changes the definition of the term ``material investment''.

Pursuant to new definition of the term ``material investment'', the investor is not required to operate its business in a constructed building any more. The material investment means a building designated for the production, construction of which is secured by the legal entity established within the territory of the Slovak Republic (the ``Enterprise''), provided that (a) finances needed for the construction represent at least SKK 1,000,000,000 of the investment costs, (b) planned volume of production or employment are economically important, and (c) the Government of the Slovak Republic (the ``Government'') decided on this matter and stated that its performance is in the public interest.

According to the Amendment, the material investment means also the building designated for the production (services), construction of which shall be secured by the Enterprise that does not meet the condition set out in lett. (a) above, provided that (a) the performance of such a construction is indispensable for the operation of the business of the material investment (as defined above), technically, technologically or logistically associated with such material investment or such an investor will be supplier of components, units or semi-finished products for the final products, (b) the planned volume of the production (services) within such investment is material from the perspective of the economical development of the region, and (c) the Government decided that its accomplishment is in public interest.

This Act came into force on 1 April 2004.

---

Next: Act on the Working Hours
Up: March 2004
Previous: Airport Company Act