Act No. 453 / 2001 Coll.
Act amending Act No. 72 / 2000 Coll., on investment incentives and amending certain laws (Act on investment incentives), Act No. 586 / 1992 Coll., on income taxes, as amended, and Act No. 9 / 1991 Coll., on employment and competence of the authorities of the Czech Republic on the employment sector, as amended
Valid
Law
Effective from 30.01.2002
453
THE LAW
of 29 November 2001
amending Act No. 72 / 2000 Coll., on Investment Incentives and amending certain laws (Investment Incentives Act), Act No. 586 / 1992 Coll., on Income Tax, as amended, and Act No. 9 / 1991 Coll., on Employment and Jurisdiction of the Bodies of the Czech Republic on Employment, 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 on the amendment of certain laws (Investment incentives Act) is amended as follows:
1. In the introductory sentence of Paragraph 1 (2), the word "are 'is replaced by" means'.
2. in Paragraph 1 (2) (b):
"(b) the transfer of technically equipped territory at a favourable price,"
3. in Article 1 (2), the following point (e) is added:
"(e) transfer of land under special legislation, (2) registered in the real estate register (2a) as agricultural parcels and transfer of other types of land, at prices established under special legislation (2b) effective at the date of conclusion of the transfer contract. This is without prejudice to specific laws restricting transfers of land owned by the Czech Republic.
2) Article 17 (3) of Act No. 229 / 1991 Coll., on the treatment of property relations with land and other agricultural property, as amended by Act No. 183 / 1993 Coll.
2a) § 2 (3) of Act No. 344 / 1992 Coll., on the cadastral property of the Czech Republic (cadastral law), as amended.
2b) Article 11 of Act No 151 / 1997 Coll., on the valuation of assets and on the amendment of certain laws (Law on the valuation of assets). '.
4. In Article 2 (2) (c), the words "tangible and intangible assets' are replaced by the words, including footnote (4a):" assets which are, under special legislation, tangible and intangible assets ("tangible and intangible assets').
4a) Act No. 563 / 1991 Coll., on Accounting, as amended. '
5. in Article 2 (2) (d), including footnote 5, the following shall be added:
"(d) the cost-effectiveness of production, activities, processes, construction or equipment;
5) For example Act No. 309 / 1991 Coll., on the Protection of Air from Pollutants (Air Act), as amended, Act No. 334 / 1992 Coll., on the Protection of the Agricultural Soil Fund, as amended, Act No. 114 / 1992 Coll., on the Protection of Nature and Landscape, as amended, Act No. 254 / 2001 Coll., on Water and on the Amendment of Certain Laws (Water Act), Act No. 185 / 2001 Coll., on Waste and on the Amendment of Certain Other Laws, Act No. 157 / 1998 Coll., on Chemicals and Chemical Products and on the Amendment of Certain Other Laws, as amended. "
6. the following shall be added to Article 2 (2) (e), including footnote 6:
"(e) the acquisition of fixed tangible and intangible assets of at least CZK 350,000, and at least CZK 145 000 000 must be covered by the equity capital of a legal person or by a natural person's own funds; This condition is not considered to be met by the use of investment funds made from profits obtained from an investment action assessed for the purpose of granting public aid, 6)
6) Act No. 59 / 2000 Coll., on Public Aid. '.
7. in Article 2 (2) (f):
"(f) compliance with the conditions laid down in points (a) to (c) and (e) shall not exceed 3 years following the decision on the promise referred to in Article 5; in justified cases, the Ministry of Industry and Trade (hereinafter referred to as" the Ministry ") may, upon request, extend this period for a maximum period of 2 years,"
8. in Article 2 (2), the following point (g) is added:
"(g) the acquisition of fixed tangible and intangible assets under an investment action may be possible at the earliest from the date of submission of the project to obtain investment incentives."
9. 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 a 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, as shown in the statistics of the Ministry of Labour and Social Affairs for the last two half years, the Ministry shall reduce the amount referred to in paragraph 2 (e) to CZK 100 000 000; 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. '
10. Paragraph 2 (5) is deleted.
11. in Paragraph 3 (2) (c), the words "tangible and intangible assets" are replaced by the words "tangible and intangible assets."
12. in the second sentence of Article 4 (1), the word "should" is replaced by the word "could."
13. in Paragraph 4 (2):
"(2) The Ministry of Labour and Social Affairs and the Ministry of Finance, each in its jurisdiction, shall, at the request of the Ministry, give its consent or refuse to grant investment incentives within 14 days of receipt of the request. The Ministry of the Environment shall, within 14 days of receipt of the Ministry's request, comment on the conditions for compliance with the general condition laid down in Article 2 (2) (d). 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 14 days of receipt of the request. '
14. In Paragraph 4, the following paragraph 3 is inserted after paragraph 2:
"(3) The Ministry shall submit an application for an exemption from the prohibition of public aid under the Public Aid Act. 6) '.
Paragraphs 3 and 4 shall be renumbered paragraphs 4 and 5.
15. Paragraph 4 (4) reads:
"(4) The Ministry, after examining the supporting documents referred to in paragraph 1, after prior approval by the Ministry of Finance of the granting of the investment incentive provided for in Article 1 (2) (a), after prior approval by the Ministry of Finance of the granting of the investment incentive provided for in Article 1 (2) (a), after prior approval by the Ministry of Labour and Social Affairs of the granting of the investment incentives provided for in Article 1 (2) (c) and (d), on the basis of the opinion of the Ministry of the Ministry of Environment on the fulfilment of the general condition laid down in Article 2 (2) (d), on the basis of the prior submission by the municipality of the cadastral territory of which the investment incentives will be made, including the conditions under which the investment incentive can be withdrawn, or the decision by the Authority of the proposed. The Ministry shall, through the designated organisation, send a copy of the offer to the ministries which have expressed their views on the request and to the Office. ';
16. Paragraph 4 (5) is deleted.
17. in Article 5 (1), "§ 4 (3)" is replaced by "§ 4 (4)";
18. in Paragraph 5 (3):
"(3) The decision on the promise of investment incentives shall be issued by the Ministry to the interested parties on the basis of the prior approval of the Ministry of Finance, if the incentives referred to in Article 1 (2) (a), on the basis of the prior agreement of the Ministry of Labour and Social Affairs, if the previous agreement is to be made by the municipality in whose territory the investment is to be made, if the incentive referred to in Article 1 (2) (b), and in accordance with the Authority's decision under the Public Aid Act. 6) A copy of the decision shall be sent to the Ministry of Finance, the Ministry of Labour and Social Affairs, the Office, the competent tax administrator and the municipality in whose cadastral territory the investment is to be made, taking into account the application of the investment incentive provided for in Article 1 (2) (b). ';
19. in Article 5 (4) (d):
"(d) the permissible public aid intensity established by the Authority's decision under the Public Aid Act (6)."
20. in Article 5 (5), the words "tangible and intangible assets" are replaced by the words "fixed tangible and intangible assets."
21. Article 6, including footnote 8, shall be deleted;
22. in Article 7, paragraph 1 is deleted;
Paragraphs 2 to 5 shall be renumbered paragraphs 1 to 4.
23. in Article 7 (3) (a):
"(a) the Ministry for Investment Incentives referred to in § 1 (2) (b) and (e) and the General Conditions referred to in § 2 (2) (a) and (b),"
24. in Article 7 (3) (d):
"(d) to the Ministry of Finance and Territorial Financial Institutions for the investment incentive referred to in § 1 (2) (a) and for the general conditions referred to in § 2 (2) (c), (e), (f) and (g)."
25. in Article 7 (4), including footnote 9) and (10):
"(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. Further checks on compliance with the general condition referred to in Article 2 (2) (b) shall be carried out annually during the period of the granting of investment incentives and further checks on compliance with the general condition referred to in Article 2 (2) (c) shall be carried out after completion of the investment action assessed for the purpose of providing public aid, but not later than in the calendar year immediately following the end of the last tax period in which the investment incentive referred to in Article 1 (2) (a) may last be applied. The checks referred to in paragraph 3 (b) shall be carried out in accordance with specific environmental legislation. 9) The check referred to in paragraph 3 (c) shall be carried out after the expiry of the period specified in the written agreement under a specific legislation. 10)
9) For example Act No. 309 / 1991 Coll., on the Protection of Air from Pollutants (Air Act), as amended, Act No. 254 / 2001 Coll., on Water and on the Amendment of Certain Laws (Water Act), Act No. 185 / 2001 Coll., on Waste and on the Amendment of Certain Other Laws.
10) § 5a (2) of Act No. 9 / 1991 Coll., on Employment and the Jurisdiction of the Bodies of the Czech Republic on Employment, as amended. "
26. in Paragraph 8 (1), including footnote 11, read:
"(1) Decisions under this Act shall be taken according to the Administrative Rules, (11) unless otherwise provided for in this Act.
11) Act No. 71 / 1967 Coll., on Administrative Procedure (Administrative Regulations), as amended. '
27. in § 8 (2), "§ 4 (3), § 5 (3) and § 6 (2)" shall be replaced by "§ 4 (4) and § 5 (3)";
28. In Section 9, the words "special legislation 'are replaced by the words" public aid law (6)'.
Transitional provisions to Part One
1. Proceedings initiated before the date of entry into force of this Act shall be completed in accordance with the existing rules.
2. Investment incentives granted in accordance with existing rules shall remain in force under the conditions under which they were granted.
3. Paragraph 7 shall apply mutatis mutandis to the beneficiaries of investment incentives which have been granted a decision on the promise of investment incentives in the context of proceedings initiated before the date of entry into force of this Law.
Amendment of the Income Tax Act
Act No. 1 / 2000 Coll., Act No. 1 / 2000 Coll., Act No. 2 / 2000 Coll., Act No. 1 / 2000 Coll., Act No. 1 / 2000 Coll., Act No. 1 / 2000 Coll., Act No. 1 / 2000 Coll., Act No. 1 / 99 Coll., Act No. 2 / 1999 Coll., Act No. 1 / 99 Coll., Act No. 1 / 99 Coll., Act No. 2 / 99 Coll., Act No. 1 / 99 Coll., Act No. 2 / 2000 Coll., Act No. 2 / 2000 Coll., Act No. 2 / 2000 Coll., Act No. 2 / 2000 Coll., Act No. 2 / 2000 Coll., Act No. 2 / 2000 Coll., Act No. 2 / 1993 Coll., Act No. 2 / 2000 Coll., Act No. 2 / 2000 Coll., Act No. 2 / 2000 Coll.
1. In Paragraph 35a (1), the word "satisfied 'is replaced by" fulfilled'.
2. in Paragraph 35a (2) (b):
"(b) the taxpayer shall be the first owner in the territory of the Czech Republic for long-term tangible assets, 20) with the exception of real estate acquired as part of an investment action assessed for the purpose of providing public aid; This shall not apply to assets acquired in the context of the liquidation of a bankruptcy asset under a special law, '.
3. In Paragraph 35a (2) (c), the words "or no other entity shall be associated with it ', including footnote 69), shall be replaced by the words" not to be separated from another entity or shall not take over the assets of a company which will be liquidated without liquidation (transfer of assets to a shareholder), 69) or, in the case of a natural person, cease or cease business.
69) § 69b of Act No. 513 / 1991 Coll., Commercial Code, as amended. '
4. in Paragraph 35a (2) (d):
"(d) the taxpayer shall not increase the basis for the calculation of the tax rebate by commercial transactions in relations with the persons referred to in Article 23 (7) in a manner which does not correspond to the economic principles of normal business relations or by transferring assets or parts of the persons referred to above, resulting in a reduction of the tax base or an increase in the tax loss."
5. Paragraph 35a (3) reads as follows:
"(3) The tax rebate referred to in paragraph 1 may be applied for a period of 10 consecutive tax periods, the first tax period for which the tax rebate may be applied being the tax period in which the taxpayer has complied with the general conditions laid down by the special legislature67) and the special conditions laid down by that law, but no later than the tax period in which the investment incentive promise decision has expired 3 years after the adoption of the special legislation. In the event that the time limit for the fulfilment of the general conditions has been extended under a special legislation, 67) the beginning of application of the income tax rebate shall be postponed by a maximum of 2 years. '
6.Paragraph 35a (4), including footnote 67a, reads:
"(4) The tax rebate may not exceed the rate of public aid (67a) in respect of the costs actually incurred, which may be supported, at the same time as it may not exceed, in total, the permissible value of the public aid laid down by the decision under the specific legislation. 67)
67a) § 3 (f) of Act No 59 / 2000 Coll., on Public Aid. '
7. Paragraph 35a (6) reads as follows:
"(6) If the taxpayer fails to comply with one of the conditions referred to in paragraph 2, except for the condition referred to in paragraph 2 (a), or one of the general conditions laid down in the special legislation, the right to a discount referred to in paragraph 1 shall cease and the taxpayer shall be obliged to submit an additional tax return 28b) for all periods of taxation in which he has applied the discount. If the taxpayer fails to comply with the condition referred to in paragraph 2 (a), he shall be obliged to submit an additional tax return for all periods of taxation in which he has failed to comply. ';
8. Paragraph 35a (7) is deleted.
9. In Paragraph 35b (1), the word "satisfied 'is replaced by" fulfilled'.
10.Paragraph 35b (4) reads as follows:
"(4) The tax rebate referred to in paragraph 1 may be applied for five consecutive tax periods, the first tax period for which the tax rebate may be applied being the tax period in which the taxpayer has complied with the general conditions laid down by the special legislature67) and the special conditions laid down by this law, but no later than the tax period in which the investment incentive pledge decision expired 3 years after the adoption of the special legislation decision. In the event that the time limit for the fulfilment of the general conditions has been extended under a special legislation, 67) the beginning of application of the income tax rebate shall be postponed by a maximum of 2 years. '
11. in Paragraph 35b (5):
"(5) The tax rebate may not exceed, in each tax period, the level of public aid (67a) in relation to the costs actually incurred, which may be supported, but may not, in total, exceed the permissible value of the public aid laid down in a decision under a specific legislation. 67)."
12.Paragraph 35b (7) reads as follows:
"(7) If a taxpayer fails to comply with any of the conditions set out in Paragraph 35a (2), with the exception of the condition set out in paragraph 2 (a), or with any of the general conditions laid down in the special legislation, the right to a discount referred to in paragraph 1 shall cease and the taxpayer shall be obliged to submit an additional tax return 28b) for all tax periods in which he has applied the discount. If the taxpayer fails to comply with the condition set out in Paragraph 35a (2) (a), he shall be obliged to submit an additional tax return for all periods of taxation in which he did not comply. '
13. in Article 35b, paragraph 8 is deleted;
14. in Paragraph 38r (1), the figure "15" is replaced by "10."
Transitional provisions to Part Two
Paragraph 35a (6) and § 35b (7) of Act No. 586 / 1992 Coll., as amended by this Act, apply also to taxpayers who claimed a tax discount before the date of entry into force of this Act. Paragraph 35a (4) and 35b (5) of Act No 586 / 1992 Coll., on Income Tax, as amended by that Act, shall also apply to taxpayers who have been given a decision on the promise of investment incentives under the special legislature67) before the date of entry into force of this Act.
EFFECTIVE
This Act shall take effect on the 30th day following its publication.
Klaus v. r.
Havel v. r.
Zeman v. r.
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Regulation Information
| Citation | Act No. 453 / 2001 Coll., amending Act No. 72 / 2000 Coll., on investment incentives and amending certain laws (Act on investment incentives), Act No. 586 / 1992 Coll., on income taxes, as amended, and Act No. 9 / 1991 Coll., on employment and competence of the authorities of the Czech Republic in the employment sector, as amended |
|---|---|
| Regulation Type | Law |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 31.12.2001 |
|---|---|
| Effective from | 30.01.2002 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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