Act No. 159 / 2007 Coll.
Act amending Act No. 72 / 2000 Coll., on investment incentives and amending certain laws (Act on investment incentives), as amended
Valid
Law
Effective from 02.07.2007
Text versions:
02.07.2007
159
THE LAW
of 7 June 2007
amending Act No. 72 / 2000 Coll., on investment incentives and amending certain laws (Investment incentives Act), as amended
Parliament has decided on this law of the Czech Republic:
Amendment to the Investment Incentives Act
Act No. 72 / 2000 Coll., on investment incentives and amending certain laws (Act on investment incentives), as amended by Act No. 453 / 2001 Coll., Act No. 320 / 2002 Coll., Act No. 19 / 2004 Coll., Act No. 436 / 2004 Coll., Act No. 62 / 2005 Coll. and Act No. 443 / 2005 Coll., is amended as follows:
1. In Article 1 (1), the words "following the directly applicable regulation of the European Communities (1) 'shall be inserted after the words" amended'.
Footnote 1:
"(1) Commission Regulation No 1628 / 2006 of 24 October 2006 on the application of Articles 87 and 88 of the Treaty to national regional investment aid published in the Official Journal of the EU L 302 of 1 November 2006.";
footnote 1 shall be renumbered footnote 1a, including the footnote references.
2. in Article 2 (2) (a):
"(a) the introduction of new production or extension of existing production,"
3. In Article 2 (2) (b), the words "provided that part of the production line is part of the machinery provided for by the Government Regulation and that the purchase price of that part of the production line is at least 50% of the total purchase price of the production line 'are deleted.
4. in Paragraph 2 (2) (c), including footnote 4:
"(c) acquisition of machinery (4) at market price, intended for production purposes and produced not more than 2 years before acquisition; the value of this machinery shall be at least 60% of the total value of the fixed assets acquired in the long-term (4a) according to § 6a (1);
(4) Chapters 84, 85 and 90 of Council Regulation (EEC) No 2658 / 87 of 23 July 1987 on the tariff and statistical nomenclature and on the Common Customs Tariff. "
5. In Paragraph 2 (2) (e), the words "at least CZK 200 000 000, at least CZK 100 000 000 must be covered by equity" shall be replaced by the words "according to Paragraph 6a (1), at least CZK 100 000 000, and at least CZK 50 000 000 000 must be financed from equity."
6. in Article 2 (2) (g):
"(g) the start of construction works and the acquisition of tangible and intangible fixed assets in the framework of an investment operation shall be possible at the earliest from the date of issue of the certificate referred to in Article 4 (1)."
7. Paragraph 2 (3) reads as follows:
"(3) The amounts referred to in paragraph 2 (e) shall not include payments under a contract allowing the use of the case before the acquisition of ownership. ';
8. Paragraph 2 (4) reads as follows:
"(4) If the intention to obtain investment incentives implies that the entire investment action should be carried out in the administrative district of the municipality with the entrusted municipal authority or in the administrative districts of the municipalities with the entrusted municipal authority, in the district or in the counties where the unemployment rate is at least 25% higher than the average unemployment rate in the Czech Republic indicated in the statistics of the Ministry of Labour and Social Affairs for the past two months, the Ministry shall reduce the amount referred to in paragraph 2 (e) to CZK 60 000; half of this amount shall be covered by the equity of a legal person or by the natural person's own funds. This condition shall not be deemed to be met if the investment funds are spent on the profits obtained from an investment action assessed for the purpose of granting public aid. '
9. Paragraph 2 (5) reads as follows:
"(5) If the intention to obtain investment incentives implies that the entire investment action should be carried out in the administrative district of the municipality with the entrusted municipal authority or in the administrative districts of the municipalities with the entrusted municipal authority, in the district or districts where, at the time of submission of the project, the unemployment rate is at least 50% higher than the average unemployment rate in the Czech Republic indicated in the statistics of the Ministry of Labour and Social Affairs for the past two half-years, the Ministry shall reduce the amount referred to in paragraph 2 (e) to CZK 50 000 000; where at least half of that amount must be covered by the equity of a legal person or by the natural person's own funds. This condition shall not be deemed to be met if the investment funds are spent on the profits obtained from an investment action assessed for the purpose of granting public aid. '
10. In Article 2, the following paragraph 6 is added:
"(6) If the investment incentives referred to in Articles 1 (2) (a) to (c) and (e) cover costs which are also paid out of the investment incentive referred to in Article 1 (2) (d), those costs may be reimbursed up to the eligible aid intensity referred to in Article 6 (1) and (3). ';
11. in Article 3 (2) (a), the word "stay" is replaced by "residence" and the word "stay" is replaced by the word "residence."
12. in Article 3 (2) (b), the word "stay" shall be replaced by "residence."
13. in Article 3 (2) (g):
"(g) machinery intended for an investment action broken down by code number of the Combined Nomenclature (4) and the date of its manufacture,";
14. in Article 3 (2), the following point (k) is inserted after point (j):
"(k) an indication of any other public support requested or granted for an investment action;"
Point (k) shall be renumbered as point (l).
15. in Article 3, the following paragraph 4 is added:
"(4) The applicant shall also submit the intention and documents referred to in paragraph 3 in electronic form."
16. In the second sentence of Article 4 (1), the words "the designated organisation shall issue a certificate to the applicant that the applicant may meet the general and specific conditions for the provision of investment incentives, and 'shall be inserted after the words" the conditions for providing investment incentives.
17. in Article 4 (2) and (3):
"(2) The Ministry of Labour and Social Affairs, the Ministry of Finance and the Ministry of the Environment, each in its jurisdiction, shall assess the assumptions for the fulfilment of the general and specific conditions for the provision of investment incentives and shall, within 30 days of receipt of the supporting documents referred to in paragraph 1, issue an opinion giving its consent or opposition to the provision of investment incentives. The municipality in whose cadastral territory the construction and installation of machinery will take place shall, at the request of the Ministry, respond to the investment incentive provided for in Article 1 (2) (b) within 30 days of receipt of the request. If, within the period specified in the first sentence, no opposition has been given, the opinion shall be deemed to have been given.
(3) The Ministry shall, within 30 days of the expiry of the period referred to in paragraph 2, issue an offer for investment incentives broken down by type of incentive, their values expressed at an indicative level, including the conditions under which investment incentives may be drawn or a decision rejecting the proposed project. The Ministry may not issue an offer to provide investment incentives if the Ministry has issued dissent under paragraph 2. The Ministry shall send an offer of investment incentives or a decision rejecting the proposed project to the applicant through the designated organisation and send a copy of the offer to the ministries which have made their views known on the request. ';
18. in Paragraph 5 (1), "6 months" is replaced by "3 months."
19. In Article 5 (2) (a), the words "and if a natural person not registered in the Commercial Register is interested in investment incentives," shall be replaced by the words "a legal person not registered in the Commercial Register, shall submit a document proving the existence of that person, a natural person not registered in the Commercial Register, shall submit the relevant business authorisation, a foreign person shall submit a document of a similar nature; an extract from the Commercial Register or a document of a similar nature shall not be more than 3 months old and shall correspond to the actual situation at the date of the application; ';
20. Paragraph 5 (3) reads:
"(3) The Ministry shall take a decision on the promise of investment incentives within 30 days of receipt of the request referred to in paragraph 1."
21. in Article 5 (4), the words "established by the Ministry in cooperation with the Office" shall be deleted;
22. in Article 5 (5), the words "but at least at the level of interest (5a) fixed by the Commission at the time of the decision" shall be inserted after the words "the rules."
Footnote 5a:
"(5a) Article 9 of Commission Regulation (EC) No 794 / 2004 implementing Council Regulation (EC) No 659 / 1999 laying down detailed rules for the application of Article 93 of the EC Treaty."
23. In Article 5, paragraphs 6 and 7 are added:
"(6) At the request of the interested party, the Ministry shall cancel the decision on the promise of investment incentives to the interested party if the beneficiary has not yet started drawing on the investment incentive.
(7) The same copy of the written copy of the decision referred to in paragraph 3 or 6 shall be sent by the Ministry to the ministries referred to in Article 4 (2) and to the local tax authorities concerned. "
24. Paragraph 6a (1), including footnote 8a, reads as follows:
"(1) The costs which may be supported (Paragraph 6) must relate to the investment project, have not yet been granted any public aid and are consisting of:
(a) the value of the fixed assets consisting of the land, buildings or machinery referred to in § 2 (2) (c) located in the Czech Republic; and
(b) the value of the fixed assets up to 50% of the value of the fixed assets referred to in (a) in the form of licences or knowhow, provided that they have been purchased at a market price from non-economic or personnel-related persons (8) and will be used exclusively by an interested party at a production site supported by investment incentives.
The assets acquired under a contract for the sale of an undertaking or part of it by an economic or personal person shall not be considered as fixed assets in accordance with the first sentence.
8 (a) Paragraph 23 (7) of Act No. 586 / 1992 Coll., as amended. '
25. in Article 6a (2), the words "or, where appropriate, Article 2 (4) and (5)" shall be deleted;
26. in Paragraph 6a (5):
"(5) The eligible value of public aid for an investment action determined in accordance with Article 6 (2) shall not exceed the beneficiary or its provider or providers. Where the beneficiary receives public aid above the permissible value of the public aid, he shall be obliged to repay the part of the public aid by which the permissible value of the public aid for the investment in question has been exceeded and to pay a periodic penalty payment of the amount laid down in the budget rules but at least at the rate of interest of 5a) fixed by the Commission at the time of the decision. The Ministry shall carry out a check on the non-exceeding of the permissible rate and the value of the public support for the duration of the investment incentives. '
27. in Article 6a (7), "5%" is replaced by "interest (5a) fixed by the Commission at the time of the decision."
28. in Article 7 (4), the words "2 a" shall be inserted after the words "in Article 6a (4)."
29. in Article 7 (5), the words' the control of compliance with the general condition referred to in Article 2 (2) (b) must be carried out annually during the period of the provision of investment incentives and others' shall be deleted.
30. in Article 7 (5), the words "2 a" shall be inserted after the words "in Article 6a (5)."
31. in Article 11, paragraph 1 is deleted;
Paragraphs 2 to 4 shall be renumbered paragraphs 1 to 3.
32. In the Annex, the words', countries of central and eastern Europe (Bulgaria, Estonia, Hungary, Lithuania, Latvia, Poland, Romania, Slovenia, Slovakia and the Czech Republic), 'and' and in Central and Eastern European countries' are deleted.
Transitional provisions
1. Investment incentives granted before the date of entry into force of this Act shall remain in force under the conditions and to the extent that they are provided.
2. Proceedings initiated before the date of entry into force of this Act shall be completed and requests for investment incentives shall be decided in accordance with existing legislation, except for the provisions of Paragraph 2 (2) (g), which shall apply only until 30 June 2007.
Repeal
Government Decree No. 185 / 2002 Coll., establishing a list of machinery forming part of the production line for the purposes of the Investment Incentives Act, is hereby repealed.
Amendment of the Income Tax Act
Act No. 1 / 2004, Act No. 1 / 2004, Act No. 1 / 2004, Act No. 5 / 2004, Act No. 5 / 2004, Act No. 5 / 2004, Act No. 5 / 2004, Act No. 5 / 2004, Act No. 5 / 2004, Act No. 5 / 2004, Act No. 5 / 2004, Act No. 5 / 2004, Act No. 5 / 2004, Act No. 5 / 2004, Act No. 5 / 2004, Act No. 5 / 2004, Act No. 5 / 2004, Act No. 5 / 2004, Act No. 5 / 2004, Act No. 5 / 2004, Act No. 5 / 2004, Act No. 5 / 1999, Act No. 5 / 1999, Act No. 5 / 1999, Act No. 5 / 1999, Act No. 6 / 1999, Act No. 6 / 1999, Act No. 5, Act No. 5 / 1999, Act No. 5, Act No. 5 / 1999, Act No. 5, Act No. 5, Act No. 5 / 1999, Act No. 5, Act No. 5 / 1999, Act No 2004, Act No 2004, Act No. 5, Act No. 2004, Act No. 5, Act No. 2004, Act No. 2004, Act No. 5, Act No. 5, Act No. 2004, Act No. 5, No 1999, Act No. 2004
1. In Paragraph 35a (3), "10 'is replaced by" 5'.
2. In Paragraph 35b (4), the word "10 'is replaced by the word" 5'.
Transitional provisions
Investment incentives granted before the date of entry into force of this Act shall remain in force under the conditions and to the extent that they are provided.
Amendment to the Employment Act
In § 111 (3) of Act No. 435 / 2004 Coll., on Employment, the words "achieving at least an average rate 'are replaced by" at least 50% higher than the average rate'.
EFFECTIVE
This Act shall take effect on the day of its publication.
Wolf
Klaus v. r.
Topolánek v. r.
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Regulation Information
| Citation | Act No. 159 / 2007 Coll., amending Act No. 72 / 2000 Coll., on Investment Incentives and amending certain laws (Investment Incentives Act), as amended |
|---|---|
| Regulation Type | Law |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 02.07.2007 |
|---|---|
| Effective from | 02.07.2007 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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