Services
To obtain an investment incentive and to meet all the relevant requirements is not an easy task. We can help guide you through the entire process starting with the initial idea and ending with the successful completion of your investment project. We can provide you with the following range of services:
Evaluate the investment project
- Define the investment project alternatives and their parameters
- Check whether the investment incentive eligibility criteria have been met
- Analyse other public support options, outline various public support models
- Compare the investment project alternatives including the relevant support models, including the comparison of their benefits for the client
Prepare an application for an investment incentive
- Profile the project in cooperation with the client
- Fill in the required project form
- Organize/prepare and put together all the mandatory annexes to the application
- Consult the appropriate organizations or other entities on specific matters related to the project
Manage and administer the investment incentive
- Configure the IP administration system
- Monitor compliance with the conditions on an ongoing basis and keep records; provide feedback including suggestions for potential corrective measures or future changes
- Provide advisory services throughout the implementation of the investment incentive in order to ensure its correct amount and to optimize its use
- Provide ongoing monitoring of compliance with the general investment acquisition principles, monitor the purchasing process, review the accounting records
- Prepare project monitoring by public institutions (the Ministry of Industry and Trade, the Tax Office etc.) and participate in it
- Consult any changes and uncertainties with the state authorities
- Provide IP risk management
- Provide ad hoc consulting tailored to the current needs of our client
- Configure the project documentation archiving system and monitor the archiving process
- Ensure communication with the grant provider
AREAS ELIGIBLE FOR INVESTMENT INCENTIVES
Industrial production
Entities eligible for investment incentives
Business entities of any size wishing to enlarge their production capacity, to diversify their production by introducing new products, or to make a fundamental change in their production process. Both Czech-based companies and foreign companies setting up their subsidiaries in the Czech Republic can apply for investment incentives.
Nature and amount of the support
- Corporate income tax relief
- Transfer of land at preferential prices
- Job creation grants amounting to CZK 200,000 per job
- Employee training or retraining grants covering up to 45 % of the training costs (by company size)
- Exemption from real estate tax in „favoured industrial zones“
- The amount of the subsidy is set as a percentage of the size of the investment project and amounts to 45 %, 35 % and 25 % for small, medium and large enterprises, respectively.
Eligibility requirements
- The investment project must be carried out in the Czech Republic (outside of the City of Prague), and must relate to the manufacturing industry
- The minimum value of the investment in tangible and intangible fixed assets must amount to CZK 100 million, of which at least CZK 50 million must be used to acquire machinery for manufacturing purposes
- At least 20 new jobs must be created and staffed
- The buildings and equipment acquired must be environmentally friendly
- At least 25 % of the investment funding must be free of any public support
- Any work on the investment must not be commenced before the submission of the investment incentive project
- All requirements must be met within 3 years from the date of the decision on the investment incentive
- The value and mix of the assets acquired must remain unchanged for at least 5 years after the requirements have been met
- The jobs must be maintained and staffed for a period of at least 5 years from the date of their creation
- The beneficiaries of the investment incentive must apply all items deductible from their tax base every year in order to reduce their tax base to the maximum extent possible
Strategic investment in manufacturing
This investment project is similar to any other manufacturing investment projects. The main difference lies in the size of the investment and in the resulting benefits for the investor.
Parameters of the strategic investment
- The minimum amount of eligible costs of the investment is CZK 500 million, of which at least CZK 250 million must be used to acquire machinery for manufacturing purposes
- At least 500 new jobs must be created
Parameters of the strategic investment
In addition to the benefits similar to those of standard investment incentives, strategic investments in manufacturing can receive financial support for the acquisition of tangible and intangible fixed assets. This support currently amounts to 10 % of the value of the assets acquired.
Technology centres
Entities eligible for investment incentives
Businesses interested in developing their own research and development capacities are eligible to apply for investment incentives for technology centres. This relates to both Czech-based companies and foreign companies intending to set up their subsidiaries in the Czech Republic.
Nature and amount of the support
- Corporate income tax relief
- Transfer of land at preferential prices
- Job creation grants amounting to CZK 200,000 per job
- Employee training or retraining grants covering up to 45 % of the training costs (by company size)
- Exemption from real estate tax in „favoured industrial zones“
- The amount of the subsidy is set as a percentage of the size of the investment project and amounts to 45 %, 35 % and 25 % for small, medium and large enterprises, respectively.
Eligibility requirements
- The investment project must be carried out in the Czech Republic (outside of the City of Prague);
- The minimum value of the investment in tangible and intangible fixed assets must amount to CZK 10 million, of which at least CZK 5 million must be used to acquire machinery which was manufactured no more than 2 years before the acquisition
- At least 20 new jobs must be created and staffed
- The buildings and equipment acquired must be environmentally friendly
- At least 25 % of the investment funding must be free of any public support
- Any work on the investment must not be commenced before the submission of the investment incentive project.
- All requirements must be met within 3 years from the date of the decision on the investment incentive
- The value and mix of the assets acquired must remain unchanged for at least 5 years after the requirements have been met
- The jobs must be maintained and staffed for a period of at least 5 years from the date of their creation
- The beneficiaries of the investment incentive must apply all items deductible from their tax base every year in order to reduce their tax base to the maximum extent possible
Strategic investments in manufacturing
This investment project is similar to any other investments to technology centres. The main difference lies in the size of the investment and in the resulting benefits for the investor.
Parameters of the strategic investment
- The minimum amount of eligible costs of the investment is CZK 200 million, of which at least CZK 100 million must be used to acquire machinery for manufacturing purposes
- At least 100 new jobs must be created
Parameters of the strategic investment
In addition to the benefits similar to those of standard investment incentives, strategic investments in technological centres can receive financial support for the acquisition of tangible and intangible fixed assets. This support currently amounts to 10 % of the value of the assets acquired.
Strategic service centres
Entities eligible for investment incentives
- A business intending to implement one of the following types of strategic services shall be eligible to apply for this type of investment incentive:
- A software development centre (a plant or a part thereof creating new or upgrading existing software)
- A repair centre (a plant or a part thereof repairing high-tech equipment)
- A shared services centre (a plant or a part thereof dealing with the management of operations and administration of internal activities such as accounting, finance, information systems, etc.).
- A data centre (a plant or a part thereof dealing with data storage, sorting and management)
- A customer support centre (a plant or a part thereof dealing with customer relationship management and communication with customers through electronic channels)
- The services provided by any of these centres must span the territory of more than two countries. Both Czech and foreign companies are eligible to receive investment incentives.
Nature of the support
- Corporate income tax relief
- Transfer of land at preferential prices
- Job creation grants amounting to CZK 200,000 per job
- Employee training or retraining grants covering up to 45% of the training costs (by company size)
- Exemption from real estate tax in „favoured industrial zones“
- The amount of the subsidy is set as a percentage of the size of the investment project and amounts to 45 %, 35 % and 25 % for small, medium and large enterprises, respectively.
Eligibility requirements
- The investment project must be carried out in the Czech Republic (outside of the City of Prague)
- At least the following number of jobs must be created and staffed:
- 20 new jobs for software development and data centres
- 70 new jobs for repair centres and shared service centres
- 500 new jobs for customer support centres
- The buildings and equipment acquired must be environmentally friendly
- At least 25 % of the investment funding must be free of any public support
- Any work on the investment must not be commenced before the submission of the investment incentive project
- All requirements must be met within 3 years from the date of the decision on the investment incentive
- The value and mix of the assets acquired must remain unchanged for at least 5 years after the requirements have been met
- The jobs must be maintained and staffed for a period of at least 5 years from the date of their creation
- The beneficiaries of the investment incentive must apply all items deductible from their tax base every year in order to reduce their tax base to the maximum extent possible