Projects are submitted to the Ministry of
Economy and evaluated. The amount of investment,
creation of new jobs and type or sector of
industry or business all affect the granting
of investment aid. All relevant documentation
must accompany any application before it will
be considered by the Ministry.
The following are extracts from the Investment
Incentives Act 565/2001 (as amended
by Act 203/2004 Coll.). The extracts are
key legislative texts relating to investment
incentives, aid and tax relief for business
entities wishing to set up business in Slovakia.
Article I. Criteria for Dispensing Investment Incentives
Section 2 (1). The term “investment incentives” means
public aid, aimed to finance initial investments
and encourage creation of new jobs in connection
with such investments. The aid is granted to
purchase tangible fixed assets and intangible
fixed assets necessary to launch the production
or the provision of services, to expand the
production or the provision of services, or
to purchase an enterprise, in the following
forms:
a) corporate income tax relief granted pursuant
to special legislation
b) contributions for the creation of new jobs
granted pursuant to special legislation
c) contributions for retraining of staff hired
to newly created jobs granted pursuant to special
legislation
Section 2 (2). Criteria for the Dispensing
of Investment Incentives:
(a) opening of
a new or expansion or upgrade of an existing
establishment for
the purpose
of launching of new production or new services,
or expansion or upgrade of existing production
or existing services, or changes to the range
of produced goods, or fundamental changes to
the production process …
(b) incurring not less than [EUR12.6m]
in the procurement of tangible fixed assets
or intangible fixed assets, of which at least
[EUR6.3m] must be financed from the
own capital of the legal entity that has applied
for investment incentives.
…
Section 2 (4). If the application specifies
that the business is to be conducted in a region
in which the rate of unemployment achieves
not less than 10% according to the statistics
of the Central Office for Work, Social Issues
and Family, as of the last day of the calendar
half-year preceding the half-year of filing
of the application, the amounts specified in
subsection 2 b) shall be reduced to one half.
Article II. Tax Relief to Beneficiaries of Investment
Incentives
Section 35b, (1). Tax contributors … who were
issued a decision to grant investment
incentives containing
a tax relief pursuant to special legislation,
who were established after December 1,
2001 … may claim a reduction of the
tax reported in the tax return, subject to
the satisfaction of the criteria set forth
in special legislation and the criterion set
forth in subsection 5.
(2). The tax credit
referred to in subsection 1 above may be
claimed up to
the amount of
tax reported in the tax return during not more
than 10 consecutive tax periods starting from
the one in which the tax base and the tax
due (with the tax base not reduced by the tax
loss) are reported for the first time …
(5). Only those tax contributors referred
to in subsection 1 above shall be allowed to
claim tax credits, who are not wound-up in
the tax period with respect to which they may
claim tax allowances (except for the reorganisation
of the tax contributor into another corporate
form) and against whom no bankruptcy order
is made, or no petition in bankruptcy is rejected
due to insufficient property thereof.
Article
III.
Section 84a. Contribution for Retraining
of Staff payable to Beneficiaries of
Investment
Incentives
(1). Those employers, which are beneficiaries
of investment incentives containing a contribution
for retraining, shall be paid by District
Labour Offices contributions for the retraining
of their staff hired to the newly created jobs
referred to in Section 93a.
(2). District Labour Offices shall pay contributions
for the retraining of staff to the maximum
extent of [EUR312] per employee, on
condition that upon completion of the retraining
programme the employers under subsection 1
above keep employing such staff members for
a period of not less than 12 months.
| Contributions
by Slovakian Government – Newly
Created Jobs |
Official
Unemployment Rate Aggregate Contribution
per Newly Created Job
in the Region |
more than 30%
25% – 30%
20% – 25%
15% – 20%
10% – 15%
10% and less |
EUR5,000
EUR4,060
EUR3,125
EUR2,190
EUR1,250
EUR940 |
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Legislation
on the Establishment of Industrial Parks
The provision of support for the
establishment of Industrial Parks is governed
by Act 193/2001. An Industrial Park is
legally defined as an area on which industrial
activity or the provision of services are concentrated.
There must be at least one new business entity
to establish a new Industrial Park.
The Slovakian government will provide state
financial assistance to the local council or
authority that wishes to establish a new Industrial
Park. The local council or authority must contribute
at least 5% of the cost of establishing the
new park and have a contract in place with
a new business entrepreneur for the use of
the park.
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