Provision of investment incentives

Main information

An investor requests support in manufacturing industry, a technology centre or a strategic services centre. The Ministry of Industry and Trade issues a decision in the matter of investor support on the basis of the conditions stipulated in Act No 72/2000 on investment incentives.

The process for granting investment incentives:

1. the investor submits an application for investment incentives through the Czechinvest agency;
2. the competent authorities (Ministry of Industry and Trade, Ministry of Finance, Ministry of Labour and Social Affairs, Ministry of Agriculture, Ministry of the Environment, Government of the Czech Republic) assess the application in accordance with the Investment Incentives Act;
3. the investor is advised of the result of the application evaluation;
4. if the evaluation is positive, the investor receives an investment incentive commitment. the decision on the investment incentive commitment is issued by the Ministry of Industry and Trade;
5. based on the granted commitment, the investor requests the provision of investment incentives; the providers of specific investment incentives are the Ministry of Industry and Trade, the financial authorities and labour offices/exchanges;
6. the investor receives investment incentives in accordance with the conditions of the Act.

This applies to you if

you may apply for an investment incentive if you are a legal or natural person in business, with at least 2 completed accounting or tax years as part of the same business, and you intend to make investments in the manufacturing industry, a technology centre or a strategic services centre.

When to use this service

As an investor, you may use the service at any time if your investment plan meets the conditions of the Investment Incentives Act.

Vyřízení služby - osobně

What you need if you are using this service

The investor submits an application for investment incentives by post through the CzechInvest agency.

All details of the application, including the annexes, are provided on the CzechInvest website in the Investment Incentives section.

Where and how to solve this service

The investor submits an application for investment incentives through the CzechInvest agency.

Postal address: Agentura pro podporu podnikání a investic CzechInvest, Štěpánská 15, 120 00 Praha 2, Czechia

All details of the application, including the annexes, are provided on the CzechInvest website in the Investment Incentives section.

Vyřízení služby - elektronicky

What you need if you are using this service

The investor submits an application for investment incentives electronically through the CzechInvest agency.

All details of the application, including the annexes, are provided on the CzechInvest website in the Investment Incentives section.

Where and how to solve this service

The investor submits an application for investment incentives electronically through the CzechInvest agency.

All details of the application, including the annexes, are provided on the CzechInvest website in the Investment Incentives section.

The relevant application documentation can be sent:

• Via Databox ID: cyrj9gf
• or by email using a recognised electronic signature, to: pobidky@czechinvest.org

Additional information

What is the benefit of this service

The benefits of the service are the following investment incentives awarded by the Ministry of Industry and Trade in the field of manufacturing, for a technology centre or for a strategic services centre:

1. income tax rebate (tax authorities – tax return),

2. transfer of land, including related infrastructure at a discounted price (municipalities, regions),

3. material support for job creation (labour offices/exchanges),

4. material support for retraining or training employees (labour offices/exchanges),

5. material support for acquiring tangible and intangible fixed assets for a strategic investment project (Ministry of Industry and Trade),

6. exemption from property tax in favoured industrial zones to a specified extent (tax authorities - tax return).

Appeal options

You can appeal against a decision made by the Ministry of Industry and Trade in respect of the granting of investment incentives under the relevant provisions of Act No 500/2004, the Code of Administrative Procedure (Sections 81 and 82).

Sanctions

A decision to provide investment incentives must include conditions that the investor must satisfy for the entire specified period of receiving investment incentives.

These are the conditions:

1. retaining the set maximum level of public support,
2. retaining long-term tangible and intangible assets for which the investment incentive was provided in the investor’s assets and at the place of implementation of the investment project,
3. retaining any new job for at least 5 years from the date of first employment for each new job,
4. at least 25% of the total value of investment must be financed by funds that do not contain any element of public support,
5. retain the higher-added-value activity for at least 5 years from the date of fulfilment of the general conditions,
6. the obligation to provide upon request information on the status of investment project implementation and the actual amount of support drawn down,
7. compliance with the conditions for the granting of support laid down by the directly applicable European Union Regulation.   

Penalties for non-compliance with the above conditions are as follows:

for a breach of budgetary rules for condition a), the refund of a specified portion of the support and the payment of a specified penalty; for condition c), the payment of a specified levy for breach of budgetary rules,

if any of the above conditions are not met, the decision on an investment incentive commitment will lapse.