BRATISLAVA, January 9, (WEBNOVINY) — Rules for providing investment incentives in Slovakia will change again. The Cabinet on Wednesday approved a proposal of the Ministry of Economy to amend the Investment Aid Act. „In its program statement for 2012-2016 the government pledged to create favorable conditions for investment climate improvement for local and foreign investors. With arrival of foreign investors, economic policy will primarily focus on support of existing investors in expanding their activities in Slovakia, through post-investment care and their stronger entry into industrial research and development,“ the Economy Ministry said.
When applying for investment help, local and foreign investors who are already established in Slovakia will need to create new jobs. Under the new rules, those investors who only intend to preserve existing jobs when applying for aid will not be successful. „The net increase in jobs may not be below 15 percent of new jobs on average over the past twelve months, but not be less than 40 employees,“ said the ministry. Already established investors requesting investment incentives from the government will also have to expand production by at least 15 percent compared to the average for the past three business years.
Under the new rules, the recipient of investment aid will have to maintain the number of newly created jobs for at least five years from the date of the first recruitment.
The department wants to tighten conditions for state aid in technology centers and centers of strategic services. To become eligible, such investors must increase the educational structure of employees. According to the newly proposed rules, of the total number of employees in such centers, at least 70 percent will have to be employees with university education. „The aim is to support those centers where greater sophistication is assumed and complexity of the subjects of activity requiring higher educational level of employees,“ the Economy Ministry said.
According to plans of the Ministry of Economy, the law continues to prioritize incentives in the form of tax breaks. Following its approval by parliament, it should become effecting from April of this year.
SITA