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The amendment to the Investment Incentives Act is in response to the current coronavirus pandemic

The amendment to the Investment Incentives Act is in response to the current coronavirus pandemic

The amendment to the Investment Incentives Act is in response to the current coronavirus pandemic Source: Shutterstock

The latest amendment to the Investment Incentives Act was approved in November 2020 by all required entities, i.e. the parliament, senate and the president in the record time of just 14 days. The amendment makes it possible for aid recipients affected by the COVID-19 pandemic to apply for an extension of the period for fulfilment of the general terms and conditions.

The standard period in which the general terms and conditions of investment incentives must be fulfilled is three years from the issuance of the decision to grant investment incentives. In the event that an applicant does not fulfil the terms and conditions, the entitlement to an incentive expires. “Our questionnaire-based survey, which we conducted among the recipients of investment incentives in May and June 2020, indicated that nearly 60% of companies would have a problem fulfilling some of the conditions due to the pandemic,” says Barbora Račan Ježková, head of the Investment Financing Department at CzechInvest.

“We handed over the results of the survey to the Ministry of Industry and Trade, and also discussed the option of extending the period for fulfilling the conditions. The approval of this option is a very helpful step towards investors and we believe that this change will help them to implement their investment projects in the planned scope and with the support that they received for them,” says Patrik Reichl, CEO of CzechInvest.

Thanks to the amendment to the Investment Incentives Act, it is possible to have the three-year period extended by a maximum of two years. Recipients in whose case this statutory period has not yet elapsed can apply for an extension. Investment-incentive recipients must apply for an extension no later than 30 days prior to the expiry of the statutory period (i.e. three years from the issuance of the decision to grant investment incentives). In the application, recipients must state the reasons they need more time to fulfil the conditions and substantiate how the COVID-19 pandemic has impacted them.

In the event that recipients have any questions, our investment financing specialists are available to them at pobidky@czechinvest.org.