Act No. 19 / 2004 Coll.
Act amending Act No. 72 / 2000 Coll., on Investment Incentives and on the amendment of certain laws (Investment Incentives Act), as amended, and certain other laws
Valid
Effective from 01.05.2004
19
THE LAW
of 10 December 2003
amending Act No. 72 / 2000 Coll., on investment incentives and amending certain laws (Investment incentives Act), as amended, and certain other laws
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 on the amendment of certain laws (Investment Incentives Act), as amended by Act No. 453 / 2001 Coll. and Act No. 320 / 2002 Coll., is amended as follows:
1. In Paragraph 1, the words "to promote economic development and job creation in the Czech Republic 'shall be added at the end of the text of paragraph 1.
2. in Article 1 (2) (d), the words "or training" shall be inserted after the word "retraining."
3. in Article 2 (2) (a) and (b):
'(a) the introduction of new production, the extension of existing production, or its modernisation in order to substantially change the product or production process;
(b) the use of funds in the industries of the manufacturing industry, 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; the manufacturing industry is not considered to be mining of mineral materials, the production and distribution of electricity, gas and water, construction, repair of motor vehicles, trade and other services, transport and agriculture, '.
4. In Paragraph 2 (2) (e), the amount "CZK 350 000 000" is replaced by "CZK 200 000 000" and the amount "CZK 145 000" is replaced by "CZK 100 000."
5. In Article 2, the following paragraph 4 is inserted after paragraph 3:
"(4) Where 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 the unemployment rate is at least 25% higher than the average unemployment rate in the Czech Republic, as 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 150 000; 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. '
Paragraph 4 shall become paragraph 5.
(6) footnote 6, including the references to this footnote, is deleted.
7. in Article 3 (2) (a), the words "trade name" are replaced by the words "business name."
8. In Paragraph 3 (2) (c), the words "the next 3 years' are replaced by the words" the time of implementation of the investment action '.
9. In Paragraph 3 (2) (j), the words "including the amount of the duty exemption provided under the special legislation, 7) ', including footnote 7, are deleted.
10. Paragraph 4 (3) is deleted.
Paragraph 4 shall be renumbered paragraph 3, including its internal references.
11. in Article 4 (3), after the words "Paragraph 2 (2) (d)," comma shall be replaced by "a," the words "and, by decision of the Office for the Protection of Competition (hereinafter referred to as the Office)," shall be replaced by the words "in cooperation with the Office for the Protection of Competition (hereinafter referred to as the Office)," and the words "and the Office" shall be deleted;
12. in Article 5 (3), after the words "Article 1 (2) (c) and (d)" comma shall be replaced by "a," the words "and in accordance with the Authority's decision under the Public Aid Act" and the word "Office," shall be deleted;
13. in Article 5 (4), the word "a" shall be deleted at the end of the text of point (c);
14. in Article 5 (4) (d):
"(d) the permissible rate and value of public support determined by the Ministry in cooperation with the Office, and ';
15. in Article 5, the following point (e) is added at the end of paragraph 4:
"(e) the conditions under which public aid is granted."
16. in Article 5 (5), the words "including the relevant periodic penalty payment or other penalties" shall be inserted after the words "or carried out" including footnote 6);
6) For example, Act No. 586 / 1992 Coll., on Income Tax, as amended, Act No. 9 / 1999 Coll., on Employment and Jurisdiction of the Bodies of the Czech Republic on the Employment Sector, as amended. "
17. The following Articles 6 and 6a are inserted after Article 5, including the title and footnotes 8), 8a), 8b) and 8c):
(1) The public aid intensity shall be the proportion of the amount of public aid granted in the form of investment incentives, with the exception of the investment incentive provided for in Article 1 (2) (d), to the costs that may be supported, expressed as a percentage.
(2) The permissible value of public aid shall be the absolute amount calculated from the expected costs which may be supported, as set out in the project referred to in Article 3, taking into account the permissible level of public aid.
(3) The permissible rates of public aid in individual regionech8) of the Czech Republic, which cannot be exceeded, are laid down in implementing legislation.
(4) Sectors in which investment incentives cannot be granted shall lay down implementing legislation.
(1) The costs which may be supported relate to an investment action assessed for the purpose of providing investment incentives and are composed of:
(a) fixed assets in the form of land, buildings and machinery; and
(b) a long-term intangible asset of up to 25% of the value of the long-term tangible assets referred to in (a), in the form of licences or know-how, provided that it is purchased under market conditions from persons other than economic or personnel-related persons (8a) and is used exclusively by an interested party at a production site supported by investment incentives.
(2) The beneficiary of the public aid in the form of an investment incentive ("the beneficiary of the investment incentive ') pursuant to Article 1 (2) is obliged to maintain the long-term tangible assets and the long-term intangible assets for which the public aid was granted by means of investment incentives,
(a) to the extent appropriate to the actual amount of aid received, but not less than the amount referred to in Article 2 (2) (e) or, where applicable, Article 2 (4) and (5); and
(b) in a composition corresponding to compliance with the conditions laid down in Article 2 (2) (a), (b) and (c);
for the period of application of the investment incentive referred to in Article 1 (2) (a), but for at least five tax periods following the tax period when the interested party has fulfilled the general conditions laid down in Article 2 (2).
(3) The beneficiary of the investment incentive referred to in Article 1 (2) (c) shall maintain the number of newly created jobs and the occupation of such posts by staff with a fixed weekly working time, 8b) for which the investment incentive referred to in Article 1 (2) (c) will be received for at least 5 years from the date of the first drawing of the investment incentive referred to in Article 1 (2) (c).
(4) The investment action assessed for the purpose of granting public aid must be carried out in such a way that at least 25% of the total value of the investment must be financed by means in which no element of public aid is included.
(5) The costs referred to in paragraph 1 shall not include fixed assets and fixed assets for which public aid has already been granted, irrespective of the sources from which it is granted. The control of the excess of the permissible rate and the value of the public aid shall be carried out by the Ministry on an ongoing basis during the period of drawing on investment incentives.
(6) The beneficiary of an investment incentive which has not been granted an investment incentive pursuant to Article 1 (2) (a) shall inform the Ministry in writing, no later than 30 days after the granting of public aid other than under this Act, for an investment action assessed for the purpose of providing investment incentives. In the event of failure to comply with this obligation, the permissible value of the public aid referred to in Article 4 (3) shall be reduced by the value of the public aid granted, which was not notified by the Ministry to the interested party.
(7) In the case of an investment incentive under Article 1 (2) (b) in the event of non-compliance with the condition referred to in paragraph 2 or in the case of non-compliance with the general conditions under Article 2 (2), the investment incentive shall cease to be valid. In this case, the beneficiary of this investment incentive must pay the value of the public aid thus granted to the party who transferred the technically equipped area to the beneficiary of that investment incentive, including a penalty of 5% of the amount of the public aid thus granted for each year ending after the decision on the promise of investment incentives has been taken.
(8) In the event of failure to comply with the conditions referred to in paragraph 2, the effects referred to in Article 5 (5) shall take place. In the event of non-compliance with the condition referred to in paragraph 3, the decision on the promise of investment incentives in the part concerning the granting of an investment incentive under Article 1 (2) (c) shall cease to be valid and all that has been obtained by the investment incentive under Article 1 (2) (c) shall be recovered under specific legislation. (c)
8) Article 15 of Act No. 248 / 2000 Coll., on the promotion of regional development.
8 (a) Paragraph 23 (7) of Act No. 586 / 1992 Coll., as amended.
8b) § 83a of the Labour Code.
8c) For example, Act No. 218 / 2000 Coll., on budgetary rules and amending certain related laws (budgetary rules), as amended. '
18. in Paragraph 7 (3), at the end of the text of point (a), the words "and for the obligation referred to in Article 6a (2), with the exception of checking the condition referred to in Article 2 (2) (c)," shall be added;
19. in Article 7 (3), the words "and to the local competent office of work on the condition referred to in Article 6a (3)" shall be added at the end of the text in point (c);
20. in Article 7 (3), the words "and, in the case of the condition referred to in Article 6a (4)" shall be added at the end of the text of point (d).
21. Paragraph 7 (4) reads:
"(4) The checks referred to in paragraph 3 (a) and (d) shall be carried out by the competent authorities no later than 3 years after the decision on the commitment referred to in Article 5 has been taken, with the exception of the check on compliance with the condition set out in Article 6a (4)."
22. in Article 7, paragraphs 5 to 7, including footnote 10, are added:
"(5) A further check of the fulfilment of the general condition referred to in Article 2 (2) (b) shall be carried out annually for the period of the period of the granting of the investment incentives and a further check of compliance with the general condition referred to in Article 2 (2) (a), (c) and (e), together with the check of compliance referred to in Article 6a (4), shall be carried out five years after the date of the first application of the investment incentive referred to in Article 1 (2) (a), or, if the investment incentive referred to in Article 1 (2) (a) is not applied, in the year following its last application but no later than 5 years after the date of the first withdrawal of the investment incentive referred to in Article 1 (2) (c).
(6) The checks referred to in paragraph 3 (b) shall be carried out in accordance with specific environmental legislation. 9)
(7) The control of investment incentives referred to in Sections 1 (2) (c) and (d) shall be carried out after the expiry of the time limit specified in the written agreement concluded under the special legislature10) and the check of compliance referred to in Section 6a (3) shall be carried out five years after the date of first drawing of the investment incentive referred to in Section 1 (2) (c).
10) Articles 5a (2) and 6a (2) of Act No. 9 / 1991 Coll., as amended. '
23. in Article 8 (2), the words "Article 4 (4) and" shall be deleted;
Article 24 (9) shall be deleted;
25. in Article 11, the following paragraphs 3 and 4 are added:
"(3) The Government shall issue a Decree implementing Paragraph 6 (3).
(4) The Ministry shall issue a decree implementing Article 6 (4). '
Transitional provision
The procedure in which the Ministry of Industry and Trade submitted a request to the Office for the Protection of Competition for an exemption from the prohibition of public aid before the date of entry into force of this Act shall be completed in accordance with existing legislation.
Entitlement to declare the full text of the law
The Prime Minister is hereby authorised to declare the full text of Act No. 72 / 2000 Coll., on Investment Incentives and on the amendment of certain laws (Investment Incentives Act), as is apparent from the laws amending it.
Amendment of the Income Tax Act
In Article 35b (4) of Act No. 586 / 1992 Coll., on Income Tax, as amended by Act No. 453 / 2001 Coll., the word "five 'is replaced by the word" ten'.
EFFECTIVE
This Act shall take effect on the date of the entry into force of the Treaty of Accession of the Czech Republic to the European Union.
Zaoralek v. r.
Klaus v. r.
Spindles v. r.
Contents
Sign in for notes, favorites and notifications
Regulation Information
| Citation | Act No. 19 / 2004 Coll., amending Act No. 72 / 2000 Coll., on investment incentives and on the amendment of certain laws (Investment incentives Act), as amended, and certain other laws |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 23.01.2004 |
|---|---|
| Effective from | 01.05.2004 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
Comments 0