Act No. 72 / 2000 Coll.
Act on investment incentives and amending certain laws (Act on investment incentives)
Valid
Law
Effective from 01.05.2000
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72
THE LAW
of 24 February 2000
on investment incentives and amending certain laws (Investment Incentives Act)
Parliament has decided on this law of the Czech Republic:
INVESTMENT OBJECTION
(1) This law regulates the general conditions for the provision of investment incentives, the procedure for providing investment incentives and the exercise of public administration related to this in order to promote economic development and job creation in the Czech Republic, following the directly applicable regulation of the European Union.
(2) The Ministry of Industry and Trade (hereinafter referred to as "the Ministry") fulfils the notification obligation to provide investment incentives under this Act resulting for the Czech Republic from the directly applicable European Union1).
Definition of basic terms
(1) For the purposes of this Act:
(a) public aid in the form of investment incentives
1. discounts on income taxes pursuant to special legislation12),
2. transfer of land, including associated infrastructure, at a preferential price;
3. physical support for the creation of new jobs under the Specific Legislation (13);
4. material support for the retraining or training of staff under special legislation13),
5. physical support for the acquisition of long-term tangible and intangible assets for a strategic investment action; or
6. exemption from real estate tax in preferential industrial zones to the extent provided for by special legislation23),
(b) investment by investment in long-term tangible and intangible assets carried out within the territory of the Czech Republic in the context of the business of the beneficiary of the investment incentive;
(c) start of work related to the implementation of the investment action
1. start of construction work,
2. the start of the acquisition of fixed tangible and intangible assets, with the exception of the acquisition of land and the acquisition of documentation necessary for the implementation of the investment operation; or
3. legal action to obtain machinery,
(d) the beneficiary of an investment incentive by a legal or natural person who has been given a decision on the promise of an investment incentive (hereinafter referred to as the "promise decision");
(e) machinery, long-term tangible property falling within Chapters 84, 85 or 90 of the Customs Tariff (26), or technical evaluation of long-term tangible property falling within Chapters 84, 85 or 90 of the Customs Tariff (26),
(f) fixed tangible and intangible assets of fixed tangible and intangible assets under accounting legislation;
(g) a new post which is created in direct connection with an investment project and which means an increase in the number of employees at the investment site compared to the average number of employees at the investment site in the last 12 months immediately preceding the calendar month in which the intention was submitted to obtain an investment incentive pursuant to Article 3 (1) and which is occupied by an employee who has an indefinite employment relationship and is a citizen of the Czech Republic, a national of another Member State of the European Union or of his family member or long-term resident in the European Union in the territory of the Czech Republic under special legislation (18);
(h) the number of employees at the place where the investment is carried out, the number of employees registered by the beneficiary with the place where the investment is carried out, converted into a fixed weekly working dobu8a).
(2) This law does not apply to tourism, recreational, cultural and sports services, health and social services, transport and transport services, distribution, logistics, postal and courier services, consulting and advisory services, banking, real estate, leasing services, audiovisual services (19), direct marketing, environmental services, labour agency services and areas where regional investment or training aid cannot be granted under the directly applicable European Union25).
(1) A privileged industrial zone is a government-approved industrial zone designed to promote balanced and dynamic economic development of the Czech Republic.
(2) The Ministry proposes preferential industrial zones to the government on the basis of continuous analysis of free areas in existing officially supported industrial zones and taking into account current economic developments in the various parts of the Czech Republic.
Type of investment actions
(1) An investment incentive may be provided for an investment action which is implemented
(a) in the processing industry (15), to introduce production, to increase production capacity, to expand the production range by new products or to significantly change the overall production process;
(b) in a technology centre for the purpose of building, increasing capacity or extending output to new products, with the focus of the technology centre being applied research, development and innovation17) technically or otherwise advanced products, technologies and production processes, including the creation and innovation of their software; or
(c) in the centre of strategic services for the purpose of initiating its activity, increasing capacity or extending output to new services, the strategic services centre may be implemented in the form of:
1. software creation centres focusing on the creation of new or innovation17) existing software,
2. data centres focusing on data storage, sorting and management,
3. a repair centre focusing on the repair of technically advanced equipment; or
4. centres of shared services with a focus on taking over the management, operation and administration of internal activities from a controlling or controlled person (27) or from contractors for which such activities are not subject to business.
(2) On the basis of an analysis of the economic and industrial development of the Czech Republic, the development of the unemployment rate in the Czech Republic and the assessment of the investment actions which have been supported so far by the Ministry in cooperation with the other central administrative authorities concerned, the Government shall lay down a regulation for which the types of investment actions referred to in paragraph 1 may be provided by the Ministry in order to promote economic development and create jobs.
(3) If the Government authorises an investment incentive under Article 1a (1) (a) (5) for an investment action, it is a strategic investment action. The types of investment actions for which an investment incentive can be provided pursuant to Section 1a (1) (a) (5) shall be determined by the Government by means of a regulation on the basis of an analysis of the economic and industrial development of the Czech Republic, the development of unemployment rates in the Czech Republic and the appreciation of investment actions which have been supported so far.
An investment incentive which cannot be provided on the basis of a directly applicable European Union provision for regional investment aid and employment and training aid (1) may be granted in accordance with Article 107 (3) of the Treaty on the Functioning of the European Union, provided that an individual exemption from the prohibition of public aid has been granted for an investment operation by the European Commission ("the Commission ').
(1) An investment incentive may be provided to an enterprise, whether legal or natural, if it proves that it can meet the general conditions laid down by this law, the specific conditions laid down by specific legislation12), 13), 23) and the conditions laid down directly by the European Union1). The conditions laid down in the directly applicable European UnionRegulation (1) shall not apply where an individual exemption from the Commission's prohibition of public aid has been granted for an investment operation.
(2) The general conditions are:
(a) the implementation of an investment event in the Czech Republic;
(b) the cost-effectiveness of environmental activities, construction or installations (4);
(c) the start of work relating to the implementation of the investment project only after the date of submission of the project to obtain the investment incentive provided for in Article 3 (1).
(3) Other general conditions, if the Government so provides, are:
(a) the acquisition of fixed tangible and intangible assets pursuant to Article 6a (1) (a), at least at the value laid down by the Government Decree, within 3 years of the decision on the commitment;
(b) the creation of new posts at least in the number laid down by the Government's decree, within 3 years of the decision on the commitment; or
(c) the implementation of an investment action in the framework of an activity which increases the value of the activity carried out through the use of qualified labour or advanced technology, as provided for by the Government by a regulation (hereinafter referred to as "higher value added activity"), within 3 years of the decision on the commitment.
(4) The Government of the Republic of the Czech Republic shall determine for each type of investment which of the other general conditions referred to in paragraph 3 shall apply and in which regions of the Czech Republic. The minimum value of the fixed tangible and intangible assets, the minimum number of new jobs and activities with higher added value, depending on the type of investment action, the region in which the investment action is to be implemented, and the size of the beneficiary of the investment incentive is determined by the Government by regulation on the basis of an analysis of the economic and industrial development of the Czech Republic, the development of the unemployment rate in the Czech Republic and the appreciation of the investment actions still supported.
(5) The amounts referred to in paragraph 3 (a) shall not include payments under a contract allowing the use of the case before the acquisition of ownership.
(6) Where the investment incentive provided for in Article 1a (1) (a) (1) to (3), (5) and (6) covers costs which are also paid for by the investment incentive provided for in Article 1a (1) (a) (4), those costs may be reimbursed up to the maximum amount of public aid provided for in Article 6 (1).
(7) At the request of the beneficiary of an investment incentive that demonstrates that, as a result of the spread of the disease COVID-19, it cannot fulfil the general conditions within the time limits set out in paragraph 3 (a), (b) or (c), the Ministry may extend the period referred to in paragraph 3 by a maximum of 2 years. The request shall be made at least 30 days before the expiry of the period referred to in paragraph 3.
(1) An applicant for an investment incentive (hereinafter referred to as "the applicant") may be a legal or natural person who, in the course of his business, has at least 2 completed accounting or taxation periods. The applicant shall submit on the form an intention to obtain the investment incentive and documents referred to in paragraphs 3 to 6 (hereinafter referred to as the "documents for providing the investment incentive '). The documents for providing the investment incentive shall be provided by the applicant either in paper form and at the same time in electronic form on the prescribed technical medium or in electronic form by the organisation set up by the Ministry (hereinafter referred to as" designated organisations'). The model of the form for applying the intention to obtain an investment incentive shall be laid down by the Government by a regulation.
(2) The applicant shall indicate in its intention:
(a) if the legal person is involved, the identification details of persons who are a statutory authority or a member of a statutory body of a legal person, indicating the manner in which they may act on its behalf, the identification details of persons who have 20% or more of voting rights or have a business share of 20% or more of the capital or, in the case of a controlled person, the identity of the trading firm or the name and surname of the controlling person and the State where its registered office is located;
(b) the main subject matter of the business, the size of the applicant (20), the details of the contact person authorised to act as applicant in proceedings under this Act, the economic data collected on the applicant and the number of employees;
(c) information on the investment operation, its location, its start-up and closure dates and how its financial, personnel and material collateral is to be secured;
(d) information on the environmental impact of the investment action and energy consumption of the energy economy under the Energy Management Act at the place of implementation of the investment action;
(e) data on the required forms of investment incentive;
(f) details of other aid requested or granted for an investment operation;
(g) data on eligible costs and the choice of eligible costs referred to in Article 6a (1);
(h) information on further investments by the applicant or persons considered to be undertakings linked to the applicant under the directly applicable European Union20) initiated in the preceding 3 years before the date of submission of the intention to obtain an investment incentive in the territory of the region in which the investment is to be carried out and to which public aid has been granted or is requested, which is regional investment aid under the directly applicable European Union1);
(i) the amount of public aid requested; and
(j) quantification and justification of the expected contribution of the investment action to the region and the State.
(3) The applicant shall attach to the project,
(a) if the legal person, annual reports, financial statements or consolidated accounts for the last 2 end financial years are required to be drawn up by the applicant in accordance with the accounting legislation; where, at the date of submission of the project, annual reports, financial statements or consolidated accounts are published in a public register collection, the applicant shall not submit them; a foreign person shall attach an extract from the public register and accounts for the last 2 financial years of the end of the accounting year, if he is obliged to process it under the law of the State in which he is established, and shall also attach a founding act or an officially certified copy thereof and the statutes thereof, if it is not a founding act,
(b) if the natural person in business, proof of authorisation to do business, financial statements, tax records or a copy of the tax return on income for the last 2 years is the end of the accounting or taxation period; where, at the date of submission of the project, the accounts are published in the public register collection, the applicant shall not submit them; a foreign person shall attach an extract from the public register and accounts, tax records or a copy of the income tax returns for the last two completed accounting or taxation periods, if it is required to process, maintain or submit them in accordance with the law of the State in which he or she is established.
(4) The applicant shall also add to the project:
(a) an affidavit that:
1. Commence work relating to the implementation of the investment project only after the date of submission of the project to obtain an investment incentive pursuant to § 3 (1);
2. is or is not a small or medium-sized business20),
3. He has not been given a decision on bankruptcy or a similar decision with a foreign person, or that he is not in danger of bankruptcy;
4. the documents for providing the investment incentive submitted in electronic form on the technical data medium are identical to those for providing the investment incentive submitted in paper form where the applicant submits those documents in paper form;
5. is not in difficulty under the directly applicable European Union1) and is not an applicant against whom, following a Commission decision declaring the aid received from a provider from the Czech Republic illegal and incompatible with the internal market, a recovery order has been issued which has not yet been repaid,
6. has not carried out, in the previous 2 years before the date of submission of the project, an investment incentive for relocation under the directly applicable European Union1) to the place of implementation of the investment action for which the investment incentive is requested and undertakes not to do so within 2 years of the completion of the investment project for which the investment incentive is requested,
7. is not a commercial company which is prohibited from providing investment incentives under the law governing conflicts of interest,
(b) the certificate of the competent authority that it does not have a non-payment in the register of taxes, does not have a non-payment in respect of social security contributions and a contribution to the state employment policy, including periodic penalty payments, does not have a non-payment in respect of public health insurance premiums, including periodic penalty payments; the certificate must not be more than 2 months old and must correspond to the actual condition at the date of application;
(c) a description of how the investment action is financed;
(d) a description of the investment action;
(e) the organisational arrangements of the business group where the applicant is part of it;
(f) other information and supporting documents necessary for the assessment of an individual exemption from the prohibition of public aid by the Commission in the case of an investment action requiring the granting of an individual exemption from the prohibition of public aid by the Commission.
(5) If the applicant is to receive an investment incentive at the same time, it shall also attach to the intention a proof of exemption from the obligation to maintain confidentiality under the tax rules for employees in the tax administration of the Czech Republic and employees in the Ministry of Finance vis-à-vis the Ministry of Finance for the purposes of checking under § 7 (1) and special legislature22), to the extent of the information demonstrating the state of compliance with the general conditions under § 2 (2) (c) and § 2 (3) (a), the obligations under § 6a (2) (2), (3) and (6), as well as to the amount of the investment incentive applied under § 1a (1) (1) and (6).
(6) The foreign person may submit the founding act and the statutes, if not the founding act, and the accounts, tax records or copies of the tax return in English.
(1) The designated organisation shall draw up an assessment to provide the investment incentive and submit it together with it to the Ministry no later than 30 days after their submission. The opinion shall indicate whether the applicant can meet the general and specific conditions and shall assess the consistency of the investment action identified in the project with the directly applicable European Union1). The consistency of an investment action with the directly applicable European Union Regulation (1) is not assessed if it is an investment action requiring an individual exemption from the Commission's prohibition of public aid. If the assessment that the applicant can fulfil the general and specific conditions for providing the investment incentive and the investment action referred to in the project is in line with the directly applicable European Union Regulation (1), with the exception of an investment action requiring the granting of an individual exemption from the prohibition of public aid by the Commission, it shall include a proposal to provide an investment incentive. The proposal to provide an investment incentive shall indicate the form of the investment incentive that can be provided, its amount and the conditions for its application. Where the assessment indicates that the applicant is unable to meet the general and specific conditions, the designated organisation shall add to the assessment a proposal to reject the investment incentive.
(2) Where the applicant requests investment incentives pursuant to Article 1a (1) (a) (5) or investment incentives pursuant to Article 1d and the Ministry recommends to the Government its approval, the Ministry shall, before issuing a decision on the offer of investment incentives (hereinafter referred to as the "tender decision") pursuant to paragraph 5, submit a proposal for approval of an investment incentive pursuant to Article 1a (1) (a) (5) or an investment incentive pursuant to paragraph 1d. Until approval by the Government, the time limit for the decision on the offer referred to in paragraph 5 or the decision on the commitment under Paragraph 5a shall not run.
(3) Where the opinion referred to in paragraph 1 results in an investment action requiring the granting of an individual exemption from the prohibition of public aid by the Commission, the Ministry shall, before issuing a tender decision pursuant to paragraph 5 or a commitment decision pursuant to Paragraph 5a, apply to the Commission for an individual exemption from the prohibition of public aid. Pending the Commission's decision on the request, the time limit for the decision on the offer referred to in paragraph 5 or the decision on the promise referred to in paragraph 5a shall not run.
(4) The Ministry of Labour and Social Affairs, the Ministry of Finance, the Ministry of Agriculture and the Ministry of the Environment (hereinafter referred to as the "body concerned") shall assess the assumptions for the fulfilment of the general and specific conditions for providing an investment incentive and, within 30 days of the receipt of the supporting documents referred to in paragraph 1, shall issue a binding opinion in which it will agree or disagree to provide an investment incentive on the basis of an assessment of its contribution to the State. In the event that the authority concerned requests to be supplemented by supporting documents for the provision of an investment incentive, the time limit for the issue of a binding opinion shall not run and shall be extended by the time of completion of such documents. The municipality or region in which the land on which the investment will be carried out (hereinafter referred to as the owner of the land) is owned shall, within 60 days of receipt of the Ministry's request, express its consent or opposition to the provision of an investment incentive pursuant to Article 1a (1) (a) (2). The municipality in whose cadastral territory an investment action (hereinafter referred to as "the municipality ') will be carried out shall, within 60 days of receipt of the Ministry's request, express its consent or opposition to the provision of an investment incentive pursuant to Article 1a (1) (a) (6). Where, within the period referred to in the sentence of the first or second sentence, no opposition has been given, the opinion shall be deemed to have been given; if the consent has not been given within the period specified in the sentence of the third or fourth sentence, the owner of the land or the municipality shall be deemed to disagree.
(5) The Ministry shall issue a decision on the offer, including the conditions under which the investment incentive may be drawn, within 30 days of the expiry of the period referred to in paragraph 4, on the basis of an assessment of the documents for providing the investment incentive and the opinions received within the time limit referred to in paragraph 4, or a decision which it shall reject. If the owner of the land expressed his opposition, the Ministry will not provide an investment incentive offer under Paragraph 1a (1) (a) (2). If the Government does not approve the granting of an investment incentive under Section 1a (1) (a) (5) or an investment incentive under Section 1d, the Ministry will not provide it. If the municipality disagreed, the Ministry will not provide an investment incentive offer under Paragraph 1a (1) (a) (6). The decision on the offer or decision to reject the granting of the investment incentive shall be sent by the Ministry through the designated organisation to the applicant and a copy of the copy of the decision shall be sent to the authorities concerned and, where they express their comments on the granting of the investment incentive, to the owner of the land and to the municipality.
(1) On the basis of a tender decision, the interested party may submit a request for an investment incentive (hereinafter referred to as "the interested party ') to the Ministry through the designated organisation no later than 3 months after its receipt. An interested party may be a legal person who will carry out an investment action for which a tender decision has been issued, which was not set up earlier than 6 months before the date of submission of the intention to obtain an investment incentive and the applicant has a 100% participation in that person.
(2) The request for an investment incentive promise submitted by the interested party shall contain the consent of the interested party to the investment incentive and the conditions set out in the tender decision.
(3) The interested party will accompany the application for an investment incentive commitment
(a) an extract from a commercial register which may not be more than 3 months old and must correspond to the actual situation on the date on which the application for a promise is submitted;
(b) an honest declaration by the interested party of the truthfulness of the information relating to the investment project provided in the documents providing the investment incentive;
(c) an affidavit by the candidate that he has not transferred under the directly applicable European Union1) to the place of implementation of the investment action for which the investment incentive is requested and undertakes not to do so within 2 years of the completion of the investment action for which the investment incentive is requested; and
(d) exemption from the obligation to maintain confidentiality pursuant to Article 3 (5).
(4) The Ministry shall take a decision on the promise within 30 days of receipt of the request referred to in paragraph 1.
(5) The promise decision shall include:
(a) the designation of the beneficiary of the investment incentive;
(b) the forms of investment incentive granted;
(c) the conditions under which the investment incentive may be drawn;
(d) the maximum level and amount of public aid;
(e) the conditions under which public aid is granted;
(f) a mechanism for possible compensation between forms of investment incentive.
(6) At the request of the beneficiary of the investment incentive, the Ministry shall cancel the promise decision for the beneficiary if the beneficiary has not yet started drawing on the investment incentive.
(7) The same copy of the written draft decision referred to in paragraph 4 or 6 shall be sent by the Ministry to the authorities concerned, to the administrator of the recipient's income tax on investment incentives, and, if they comment on the granting of the investment incentive, also to the owner of the land and to the municipality.
(8) The date of the decision on the commitment is deemed to be the date on which the public aid is granted (1).
If the applicant is to receive an investment incentive at the same time, the Ministry shall assess the documents for providing the investment incentive and evaluate the opinions received within the time limit referred to in Article 4 (4) and within 30 days of the expiry of the period referred to in Article 4 (4), shall issue a decision on the promise referred to in Article 5 or a decision which it shall reject. If the owner of the land expressed his opposition, the Ministry will not provide an investment incentive under Paragraph 1a (1) (a) (2). If the Government does not approve the granting of an investment incentive under Section 1a (1) (a) (5) or an investment incentive under Section 1d, the Ministry will not provide it. If the municipality disagreed, the Ministry will not provide an investment incentive under Paragraph 1a (1) (a) (6).
(1) The maximum level of public aid for an investment project is the proportion of the amount of public aid granted in the form of an investment incentive, with the exception of the investment incentive provided for in Article 1a (1) (a) (4), to the eligible costs expressed as a percentage and determined in accordance with a government regulation or Commission decision granting an individual exemption from the prohibition of public aid for an investment incentive provided for in Article 1d.
(2) The maximum amount of public aid for an investment operation is the absolute amount calculated from the eligible costs foreseen in the project under Article 3, taking into account the maximum level of public aid.
(3) Allowed rates of public aid in individual regionech8) The Government of the Czech Republic, which cannot be exceeded, is laid down in a regulation. These permissible public aid rates are not applicable in the case of an investment incentive under Section 1d.
(4) An investment incentive cannot be provided if, following a Commission decision declaring aid received from a provider from the Czech Republic to be illegal and incompatible with the internal market, a recovery order has been issued against the beneficiary of the investment incentive which has not yet been repaid.
(1) The eligible costs shall be the costs incurred after the date of submission of the investment incentive provided for in Article 3 (1) relating to the investment action, to the activity carried out as a result of the implementation of the investment action and for which the beneficiary keeps separate records; eligible costs shall consist of:
(a) the value of the machinery which has been acquired at market price and has not been produced more than 2 years before the start of its acquisition, and the value or part of the value of the tangible fixed assets in the form of land or buildings or intangible fixed assets, up to the value of the machinery included in the eligible costs. Long-term intangible assets may be included in eligible costs only on condition that they have been acquired at market price from non-connected persons (21) and will be used by the beneficiary of the investment incentive exclusively at the place where the investment is carried out. Only assets acquired within 5 years of the decision on the commitment or, in the case of a strategic investment operation, within 7 years of the decision on the commitment may be included in the eligible costs. The eligible costs cannot be included
1. property or part thereof, where they have already been the subject of accounting depreciation, with the exception of fixed assets in the form of buildings which have been acquired under market conditions from persons other than connected persons, and for which the beneficiary shall, at the time of the check referred to in Article 7, provide documentary evidence of the previous owner's failure to apply public aid to the property and that the property was part or part of a commercial establishment whose operation was terminated before the date of transfer of ownership rights;
2. property not used by the beneficiary at the place where the investment is carried out; or
3. property acquired after the completion of the investment operation; or
(b) the value of the wage costs incurred for new jobs during the 24 months immediately following the month in which the post was filled. These new posts may include only new posts occupied by the staff member in the period after the date of submission of the intention to obtain an investment incentive pursuant to Article 3 (1) within 3 years of the decision on the promise or of the completion of the investment action, provided that they have been completed before the decision on the promise is taken. The value of monthly wage costs may include the gross wage of employees and the corresponding social security contributions, the contribution to the state employment policy and the public health insurance contributions paid by the employer for employees, up to a maximum of three times the average national economy wage for the first to third quarters of the calendar year preceding the calendar year in which the applicant submitted the intention.
(2) The beneficiary of an investment incentive for which the eligible costs consist of the costs referred to in paragraph 1 (a) shall:
(a) to use and maintain in its assets and place of implementation of an investment project the long-term tangible and intangible assets for which an investment incentive has been granted, to the extent appropriate to the actual amount of aid received, but not less than the amount and composition corresponding to the fulfilment of the general condition laid down in Article 2 (3) (a), for the period of application of the investment incentive referred to in Article 1a (1) (a) (6), but not less than 5 years after the completion of the investment action;
(b) maintain the new posts referred to in Article 2 (3) (b) for at least 5 years from the date of the first employment in each new post; and
(c) maintain a higher value added activity as referred to in Article 2 (3) (c) for at least 5 years from the date of fulfilment of the general conditions laid down in Article 2 (2) and (3).
If the beneficiary of the investment incentive sends the Ministry a notification of when the investment action was completed and to what extent, the investment action shall be deemed to have been completed on the date specified in that notification. Investment actions shall be considered completed unless the beneficiary of the investment incentive sends such notification within 5 years of the date of the decision on the commitment or, in the case of a strategic investment action, within 7 years of the decision on the commitment.
(3) The beneficiary of an investment incentive for which the eligible costs consist of the value of the wage costs referred to in paragraph 1 (b) shall:
(a) maintain new jobs for which an investment incentive has been granted in a number corresponding to the actual amount of aid received but not less than that corresponding to the fulfilment of the general condition laid down in Article 2 (3) (b), for the period of application of the investment incentive referred to in Article 1a (1) (a) (1) or (6), but not less than 5 years from the date of first employment in each new job;
(b) use and maintain in its property and place of implementation of an investment project the tangible and intangible assets referred to in Article 2 (3) (a) for at least 5 years from the completion of the investment operation; and
(c) maintain a higher value added activity as referred to in Article 2 (3) (c) for at least 5 years from the date of fulfilment of the general conditions laid down in Article 2 (2) and (3).
If the beneficiary of the investment incentive sends the Ministry a notification of when the investment action was completed and to what extent, the investment action shall be deemed to have been completed on the date specified in that notification. Investment actions shall be considered completed unless the beneficiary of the investment incentive sends such notification within 5 years of the date of the decision on the commitment.
(4) For the fulfilment of the obligation to maintain the fixed tangible and intangible assets referred to in paragraph 2 (a) and paragraph 3 (a). (b) the replacement of property shall also be regarded as being used for the same purpose and as eligible costs as referred to in paragraph 1 due to its destruction, failure or deprivation.
(5) The beneficiary of the investment incentive referred to in Article 1a (1) (a) (3) shall be obliged to maintain new jobs for which the investment incentive referred to in Article 1a (1) (a) (3) has been received for at least 5 years from the date of the first employment in each new job.
(6) 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.
(7) The beneficiary of the investment incentive pursuant to Article 1a (1) (a) (5)
(a) be obliged, within 5 years of the decision on the commitment, to acquire the tangible and intangible assets referred to in paragraph 1 (a) at least at the value laid down by the Government's Decree and to create new jobs at least in the number laid down by the Government's Decree; the Government of the Czech Republic sets minimum values for the long-term tangible and intangible assets and minimum number of new jobs on the basis of an analysis of the economic and industrial development of the Czech Republic, the development of unemployment rates in the Czech Republic and the appreciation of investment actions still supported,
(b) may not register, on the date of completion of the investment action referred to in paragraph 2, a lower value of the eligible costs by more than 15% than the estimated value of the eligible costs indicated in the plan to obtain an investment incentive and to create a lower number of new jobs by more than 10% than the expected number of new jobs indicated in the plan to obtain an investment incentive; and
(c) it is obliged to use and maintain in its assets and place of implementation of an investment project the fixed tangible and intangible assets of the amount and composition specified in the agreement on the granting of material aid of the acquisition of fixed tangible and intangible assets pursuant to Paragraph 11a for at least five years from the completion of the investment operation and to maintain new jobs in the number specified in the agreement on the granting of material and intangible assets of at least five years from the date of the first employment in each new place.
(8) The maximum amount of public aid for an investment action determined in accordance with Article 6 (2) may not exceed the beneficiary or its provider or providers. Where the beneficiary receives public aid in excess of the maximum amount of public aid, he shall be obliged to repay the part of the public aid by which the maximum amount of public aid for the investment in question has been exceeded and to pay a penalty of the amount set by the budgetary rules, but at least at the rate of interest 8b) fixed by the Commission at the time of the decision on the commitment. The Ministry shall check that the maximum level and amount of public support are not exceeded on an ongoing basis during the period of drawing up the investment incentive. The Ministry shall submit to the Commission a report on the assessment of the provision of investment incentives under the directly applicable European Union Regulation (1); In addition, the beneficiary is obliged to provide, at the request of the Ministry, information on the state of implementation of the investment project and the actual amount of the aid received.
(9) Failure to comply with the obligation referred to in paragraph 5 by the beneficiary of the investment incentive referred to in Article 1a (1) (a) (3) shall constitute a breach of budgetary discipline under the budgetary rules, with a payment for breaches of budgetary discipline being imposed at the rate of a proportion of the investment incentive thus obtained corresponding to the number of new posts not retained.
(10) The promise decision will cease to be valid in the event of non-compliance
(a) the general conditions set out in Article 2 (2) and (3);
(b) the obligation to maintain the tangible and intangible assets referred to in paragraph 2 (a) and paragraph 3 (b) at least at the rate and composition laid down in Article 2 (3) (a);
(c) the obligation to maintain new posts and to fill them with staff referred to in paragraph 2 (b) and paragraph 3 (a) at least in the number laid down in Article 2 (3) (b);
(d) the obligation to maintain a higher value added activity as referred to in paragraph 2 (c) and paragraph 3 (c);
(e) the obligations referred to in paragraph 6;
(f) the obligation to provide, upon request, information on the state of implementation of the investment operation and the actual amount of aid received as referred to in paragraph 8; or
(g) the conditions for granting aid laid down in the directly applicable European UnionRegulation (1) or the conditions for granting aid laid down in the Commission decision granting an individual exemption from the prohibition of public aid for an investment project, in the case of an investment incentive under Section 1d.
(11) If the decision on the promise of validity referred to in paragraph 10 remains, all that has been obtained, returned or paid in the form of an investment incentive under specific legislation28), including the penalties applicable. Penalties under special legislation28) must be at least the rate of interest 8b) fixed by the Commission at the time of the decision on the commitment.
(12) In the event of non-compliance with the obligation to maintain the long-term tangible and intangible assets for which an investment incentive has been granted, to the extent appropriate to the actual amount of aid received, as referred to in paragraph 2 (a), or in the event of non-compliance with the obligation to maintain new jobs for which an investment incentive has been granted in accordance with paragraph 3 (a), the beneficiary of the investment incentive shall return a proportion of the investment incentive granted, which shall correspond to the amount of the non-retained tangible and intangible assets referred to in paragraph 2 (a), or the number of non-retained new jobs referred to in paragraph 3 (a), including the applicable penalties under special legislais28) but at least at the level of interest 8b) fixed by the Commission at the time when the decision on the commitment.
(13) Failure to comply with the obligations referred to in paragraph 7 by the beneficiary of the investment incentive referred to in Article 1a (1) (a) (5) shall constitute a breach of budgetary discipline under the budgetary rules, with the imposition of a penalty for breaches of budgetary discipline at the level of the material aid granted.
(14) If the beneficiary of the investment incentive wishes to participate in the merger, division or transfer of the assets to a shareholder as an existing commercial corporation and is interested in transferring rights and obligations from the commitment decision to the legal successor, he shall be obliged to ask the Ministry, prior to the publication of the merger, division or transfer of the assets to the shareholder, to agree to the transfer of rights and obligations of the commitment decision and to indicate in the application the legal successor to which they have the rights and obligations of the commitment decision to move. The Ministry shall, in cooperation with the authorities concerned, assess whether the purpose for which the investment incentive has been granted will be maintained and whether compliance with the conditions for granting the investment incentive is ensured. In the event of a positive assessment, it shall give its consent to the transfer of rights and obligations from the promise decision and designate the person to whom the rights and obligations of the promise decision are to be transferred. Without such consent, the rights and obligations of the promise decision may not be transferred and the company being acquired shall be required to comply with paragraphs 9 to 13.
(1) Specific legislation shall apply in order to check the application of the investment incentive and to draw consequences for the breach of the conditions under which the investment incentive was granted. The competent administrative authorities shall cooperate in the control and shall provide each other with the information necessary to carry out the control; they shall comply with the provisions governing confidentiality.
(2) It is for the control to be carried out
(a) the Ministry, for the investment incentive referred to in Articles 1a (1) (a) (2) and (5), for the general conditions referred to in Articles 2 (2) (a) and 2 (3) (b) and (c), for the obligation to maintain new jobs under Article 6a (2) (b) and Article 6a (3) (a), for the obligation to maintain an activity with higher added value under Article 6a (2) (c) and Article 6a (3) (c) and for the obligations referred to in Article 6a (7);
(b) the Ministry of the Environment for the general condition referred to in § 2 (2) (b);
(c) the Labour Office of the Czech Republic - the Directorate-General for Investment Incentive referred to in § 1a (1) (a) (3) and (4) and the obligation referred to in § 6a (5),
(d) the Ministry of Finance and the Finance Office for the investment incentive referred to in Article 1a (1) (a) (1) and (6) and the general conditions referred to in Articles 2 (2) (c) and 2 (3) (a), the obligation to maintain the tangible and intangible assets referred to in Article 6a (2) (a) and Article 6a (3) (b) and the obligation referred to in Article 6a (6).
(3) The checks referred to in paragraph 2 (a) and (d) shall be carried out by the competent authorities at the latest by the date of expiry of 3 years from the date of the decision on the commitment or by the date of expiry of 5 years from the decision on the commitment, if the period referred to in paragraph 2 (7) has been extended, with the exception of checking compliance with the obligations referred to in Article 6a (2), (3) and (7) and the investment incentive referred to in Article 1a (1) (a) (5).
(4) Control of compliance with the condition to maintain the long-term tangible and intangible assets referred to in Article 6a (2) (a) and Article 6a (3) (b) and the obligations referred to in Article 6a (7) (c) shall be carried out after the five-year period for the maintenance of the long-term tangible and intangible assets referred to in Article 6a (2) (a) and Article 6a (3) (b), or, if the investment incentive referred to in Article 1a (1) (a) (a) (6) is applied after that period, in the year following the end of the last tax period in which the investment incentive referred to in Article 1a (1) (1) (a) (6) may last be applied. The monitoring of compliance with the condition to maintain new jobs under § 6a (2) (b) and § 6a (3) (a) and to maintain a higher value added activity under § 6a (2) (c) and § 6a (3) (c) shall be carried out after 8 years from the date of the decision on the commitment or, if the period referred to in § 2 (7) has been extended, 10 years from the date of the decision on the commitment or, if the investment incentive referred to in § 1a (1) (a) (a) (a) is applied after that period, in the year following the end of the last tax period in which the investment incentive referred to in § 1a (1) (a) (a) (1) (a) (1) (6).
(5) The control referred to in paragraph 2 (b) shall be carried out in accordance with specific environmental legislation. 9)
(6) The audit of the investment incentive provided for in Article 1a (1) (a) (3) to (5) shall be carried out after the expiry of the period specified in the written agreement concluded pursuant to Article 11a or the special legislation10) and the check of compliance with the condition set out in Article 6a (5) shall be carried out after the five-year period for the maintenance of new jobs referred to in Article 6a (5).
(7) The monitoring of compliance under Article 6a (7) (a) and (b) shall be carried out after the completion of the investment operation, not later than 7 years after the date of the decision on the commitment.
The Ministry shall submit to the Government once a year by 30 April at the latest a report assessing the existing conditions for the provision of investment incentives, assessing the benefits of the investment actions already supported and informing the government of any intention to change the conditions for the provision of investment incentives.
(1) Decisions under this Act shall be taken according to the Administrative Rules, (11) unless otherwise provided for in this Act.
(2) The decision of the Ministry pursuant to Articles 4 (5), 5 (4) and 5 (5a) shall not be subject to degradation and the resumption of proceedings and review proceedings shall not be permitted, except in accordance with the procedure laid down in Article 153 (1) (a) of the Administrative Regulation.
Common and transitional provisions
(1) Investment incentives granted before the entry into force of this Act remain in force under the conditions and to the extent that they are provided.
(2) The decision on the promise does not replace the decision, opinion, opinion, consent, assessment or other measures of the authorities concerned required by the specific legislation.
Procedure for providing investment incentives in the form of material support for the acquisition of fixed tangible and intangible assets
(1) Material support for the acquisition of fixed tangible and intangible assets for a strategic investment operation pursuant to Article 1a (1) (a) (5), the Ministry provides investment incentives on the basis of an agreement concluded between the Ministry and the beneficiary.
(2) The agreement providing physical aid for the acquisition of tangible and intangible fixed assets is always concluded for the calendar year in which the physical aid is to be paid and must contain:
(a) the identification details of the parties to the Agreement;
(b) the number of new jobs and the value of eligible costs;
(c) the definition of the costs for which the physical aid is granted;
(d) the amount of the material aid;
(e) the method and date of granting of the material aid;
(f) the manner and timing of the material support settlement;
(g) the method of checking compliance with the agreed conditions;
(h) the period and conditions for the recovery of the material aid or of the proportional part thereof, where the recipient has been drawn or used in breach of the agreement;
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Regulation Information
| Citation | Act No. 72 / 2000 Coll., on investment incentives and amending certain laws (Act on investment incentives) |
|---|---|
| Regulation Type | Law |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 03.04.2000 |
|---|---|
| Effective from | 01.05.2000 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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