Investment incentives offered by the Czech government
Extensive support for investment projects of Czech and international investors is offered by the Czech government via the CzechInvest agency – the only organization in the Czech Republic which accepts and processes applications for investment incentives. Incentives are available to Czech and foreign investors under identical conditions.
The support focuses on production-related projects in manufacturing industries (in accordance with the Act on investment incentives) and on projects involving progressive technologies with high added value and strong export potential. Support is provided up to the maximum limits set out in the regional public support intensity map – this limit depends on the region in which the investment is located. Medium-sized businesses receive a bonus of 10% on top of the basic subsidy; small businesses receive 20%.
Maximum level of public support (% of eligible costs) for the period 1.1.2007 – 31.12.2013
1) INVESTMENT INCENTIVES FOR MANUFACTURING INDUSTRIES
Investors launching new production or expanding current manufacturing production with investments exceeding CZK 50 million can apply for investment incentives in accordance with the Act on investment incentives, no. 72/2000, as amended and valid from 2 July 2007.
Types of incentive
- tax rebates on corporate income tax
- material support for the creation of new vacancies
- material support for training and requalification
- provision of land equipped with infrastructure at discounted prices
- transfer of state-owned land at discounted prices
For more information:
Summary of the manual for manufacturing industry investment incentives .
2) INVESTMENT SUPPORT FOR STRATEGIC SERVICES CENTRES
As part of the strategy of supporting projects involving progressive technologies with high added value and strong export potential, a system of government programmes has been set up to support investments in research, development and innovations (technology centres) and strategic services centres.
Strategic services centres
Strategic services centres focus on selected activities in companies with a strong involvement in information technologies and a major international focus, especially:
- shared service centres (SSCs),
- hi-tech repair centres,
- software development centres,
- expert and research centres for information and communication technologies (ICT)
On the basis of a ruling by the Ministry of Industry and Trade, the framework programme for the support of technology centres and strategic services centres is now closed to new projects with effect from 10 July 2008.
Large companies in the NUTS II Moravia-Silesia Region can access public funding to cover up to 40 % of eligible costs. However, this sum may not exceed a set maximum limit per project; the limit for this call is CZK 80 million.
The full text of the call can be found at www.czechinvest.org/ict-a-strategicke-sluzby-vyzva-ii .
ICT in enterprises
The Ministry of Industry and Trade has announced, on the 22nd of October 2009, the 3rd call on the presentation of applications for a subsidy from the European programme ICT in enterprises. The programme makes a part of OPPI and offers co-financing of business projects in the area of information and communication technologies.
Applications for registration can be presented in the period from the 1st January to the 15th October 2010. Applications for subsidies will be accepted by the Agency CzechInvest exclusively via the eAccount application at the Internet address www.czechinvest.org. The 3rd call has prepared the total subsidy worth CZK 500 million for enterprises. One project might get assigned at least CZK 350 thousand and CZK 20 million at the maximum.
3) EFEKT 2010
The programme EFEKT supports energy savings and use of renewable energy sources in the Czech Republic, and augments energy programmes supported by European Union Structural Funds. It is a part the State Programme for Energy Saving and Use of Renewable Energy Sources (Part A). The programme budget for 2010 is CZK 40 mil. Subsidies are provided for education activity, energy planning, smaller investment events and for pilot projects.
Subsidies from the programme may be provided to businesses (legal entities and natural persons), non-profit organizations, universities (pursuant to Act no. 111/1998 Coll.), cities, municipalities, regions and other established organizations, social and health facilities, interest associations, public organizations, associations of legal entities performing activities within the territory of the Czech Republic.
For more information see
http://www.mpo-efekt.cz/cz/programy-podpory/18696
4) PROGRAM MARKETING
On January 15, 2010 The Ministry of Industry and Trade of the Czech Republic announced a second appeal for submitting projects in the support programme Marketing, aimed at developing activities of Czech exporters on foreign markets and increasing use of export opportunities that exist on the market.
The subsidy supports not just the actual participation at a trade fair or exhibition held abroad, but also the related elaboration of promotional materials in foreign languages. One new feature is the option of using the subsidy for transport of exhibited items at the trade fair or exhibition if provided by an external supplier.
Small and medium enterprises may apply for financial support from the Program Marketing with at least a two-year corporate history and registered seat in the Czech Republic but outside the capital city of Prague. The minimum amount of subsidy for one project is CZK 300,000, whereas the maximum value has not been set.
Acceptance of electronic registration requests starts on March 1, 2010 via the internet application eAccount and ends on June 30, 2010. Full applications began to be received on May 1, 2010, and the deadline for accepting full applications is planned for October 31, 2010. The planned allocation amount for this appeal is CZK 500 mil .
Supported activities, other matters and conditions regarding the program can be found in the text of the Program Appeal:
