INVESTMENT SUPPORT IN THE CZECH REPUBLIC

Framework Programme for support of Technology centres and Business Support Services

Investment incentives for manufacturing

European programme – Potential

European programme – ICT and BSS

MAP OF REGIONAL STATE AID INTENSITY (2007 – 2013)

Region State aid

Prague 0-10 % (2007-08)

South-west36 % (2007-10)

30 % (2011-13)

Other regions 40%

STATE AID MAP – PRAGUE(2007 – 2008)

10%

0%

NATIONAL SUPPORT

INVESTMENT INCENTIVES FOR MANUFACTURING

INVESTMENT INCENTIVESFOR MANUFACTURING: MINIMUM INVESTMENT IN REGIONS

SM

OV

LN

LBDC

PHRA

KD

TP

JC

PV

CV

CL

MBLT

MOUL

PRPE

PU

PJ

NA

ST

ZR

KO

PM

NB

PI

HB

SU

PB

TU

NJ

OP

SY

RO

AB

BK

BRUO

KV

JN

VS

JE

CRBE

RK

DO

KT

KH

PS

ME

OC

TA

PZ

BN

HK

TC

ZN

JI

BI

CHSO

BMTRJHPT CB

BVCK

KI

KM

UH

FM

VY ZL

HO

Group Minimum Investment

A 50 mil CZK / 1,8 mil. EUR / 2,4 mil. USD

B 60 mil CZK / 2,1 mil. EUR / 2,9 mil. USD

C 100 mil CZK / 3,6 mil. EUR / 4,8 mil. USD Valid: January 1 – June 30, 2008

INVESTMENT INCENTIVES FOR MANUFACTURING: FORM OF SUPPORT

Following items summed up cannot exceed the ceiling of state aid

╌Tax incentive╌ New firms: corporate tax relief for max. 5 years╌ Existing firms: partial tax relief for max. 5 years╌Current corporate income tax rate = 21 %╌Job creation grants╌ Offered in regions with the highest rate of unemployment only (A)

╌Training and retraining grants

Granted above the ceiling of state aid

NATIONAL SUPPORT

FRAMEWORK PROGRAMME FOR SUPPORT OF TECHNOLOGY

CENTRES AND BUSINESS SUPPORT SERVICES CENTRES

PROGRAMME TC/BSS: TYPES OF SUPPORTED PROJECTS

Technology Centres (TC)╌Development and innovation activities with the close

linkage to production of high-tech products and

technologies, including development of specific software

that is part of these products, in the following fields:

╌ aerospace

╌ computers and machinery

╌ electronics and microelectronics

╌ telecommunications

╌ pharmaceutics

╌ motor vehicles

╌ etc.

PROGRAMME TC/BSS: TYPES OF SUPPORTED SERVICES

Business Support Services (BSS)

╌Software Development Centres

╌Expert and Solution Centres

╌Shared Service Centres

╌High-Tech Repair Centres

╌Customer Contact Centres

EUROPEAN PROGRAMME

POTENTIAL PROGRAMME

EU PROGRAMME: POTENTIAL – SUPPORTED ACTIVITIES

╌Projects to establish or extend a development centre (department)

╌Activities of the centre: research, development and innovation of product

and technologies

╌If there is an expectation that result of the centre will be transferred and used

in production.

POTENTIAL VERSUS FRAMEWORK PROGRAMME TC/BSS

Potential Framework Programme TC

Prague No Yes

(selected districts)

Beneficiary - enterprise of any size - enterprise of any size

Basic provisions - Minimum investment CZK 10 million (CZK 5 million for SME)

- Minimum investment CZK 10 million

- 30 newly created jobs

Eligible costs - Investment- Wages, travel costs, studies

(SME only)

- Wages- Costs for training and

retraining

EUROPEAN PROGRAMME

ICT AND BUSINESS SUPPORT SERVICES

EU PROGRAMME: ICT AND BSS - SUPPORTED ACTIVITIES

╌ Creation and development of IS/ICT solutions and applications

╌ Shared Services Centres

╌ Customer Contact Centres

╌ High-tech Repair Centres for Products and Technologies

EU PROGRAMME ICT AND BSS VERSUS FRAMEWORK PROGRAMME TC/BSS

ICT and BSS Framework programme

Prague No Yes

(selected districts)

Beneficiary - enterprise of any size - enterprise of any size

Basic provisions - x newly created job positions

- Minimum amount of investment CZK 1/2/5 million

- x newly created jobs- Minimum investment CZK 10 million

Eligible costs Wages OR Investment Wages

THANK YOU FOR YOUR ATTENTION

CzechInvest, the Investment and Business Development Agency, is an agency of the Ministry of Industry & Trade of the Czech Republic

You can contact us at: incentives@czechinvest.org +420-296-342-661