Grants & Incentives news February 2014
• The EPSILON Subsidy Programme • Changes in Investment Incentives
Grants & Incentives news Deloitte Czech Republic
Grants & Incentives news February 2014
• The EPSILON Subsidy Programme • Changes in Investment Incentives
The EPSILON Subsidy Programme In 2014, the EPSON subsidy programme for the support of applied research and experimental development will be announced. The programme follows up on the ending TIP (arranged by the Ministry of Trade and Industry) and ALFA (arranged by the Technology Agency of the Czech Republic) subsidy programmes.
The EPSILON programme will support the research and development of new products or routines including the production of prototypes and testing of their functionality. It will specifically support payroll costs, purchase of material, overhead costs and depreciation of the equipment used for research and development. Projects can be initiated starting from 2015.
The below table shows the basic information on the EPSILON programme: Mediating entity:
Technology Agency of the Czech Republic
Subsidy recipients:
Businesses and research organisations.
Programme period:
2015 – 2025.
Total programme budget:
CZK 16,150 million
Maximum percentage of the subsidy:
60 % of project eligible costs.
Average amount of the subsidy for one project:
CZK 10 million
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Grants & Incentives news February 2014
• The EPSILON Subsidy Programme • Changes in Investment Incentives
Changes in Investment Incentives The 2007-2013 programming period having ended, the European Commission has prepared the new guidelines on state aid for the regions for the 2014-2020 programming period. As a result, numerous changes in relation to public financial support, and therefore also in the Investment Incentive Act, are being made. The most noticeable planned change is the lowering of the absolute ceiling of public financial support from the current 40% to 25% of the eligible costs. The reduction of the maximum public support will be applied in all regions of the Czech Republic except for Prague, which has already been excluded. Another significant change that is valid from 1 February 2014 is an increase in cash support for newly-created jobs in type I state-supported regions from the current CZK 50,000 to CZK 200,000 per newly-created job. At the same time, however, the number of state-supported regions is being reduced – the Jeseník region is no longer a type I region. The related changes in the Investment Incentive Act will be effective for decisions on binding commitments to grant investment incentives made after 1 July 2014. Therefore, if you are planning to invest in the near future and you want to file a request for an investment incentive to be granted, we recommend that you consider doing so by the end of February 2014 at the latest, so that the current legal conditions, ie a maximum support of 40%, can be applied to it. Also, if your company is planning to invest in a state-supported region and has a chance of receiving high support for newly-created jobs, use the opportunity to receive the increased cash support.
New Resolution of the Government of the Czech Republic No. 344 on the definition of state-supported regions, of 15 May 2013 (hereinafter the “Resolution”) came into force on 1 January 2014. Regions are classified, for investment incentive purpose, into type I. regions (minimal sum of investment amounting to CZK 50 million), and type II. regions (minimal sum of investment being CZK 100 million). Based on this Resolution, the reduced minimal required investment of CZK 50 million will only be valid for newly-defined geographical areas, namely 57 municipalities with an extended scope of activity (map on the next page); the number of supported geographical areas has therefore been reduced. The new classification of municipalities with an extended scope of activity has caused districts such as Třebíč, Kroměříž, Nový Jičín, Blansko, Tachov, Česká Lípa or Jablonec n. Nisou to be excluded from the reduced minimal investment of CZK 50 million. For these districts, the minimal investment required to meet the conditions of an investment incentive will be CZK 100 million (unless they are included in the territory of a municipality with an extended scope of activity).
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Grants & Incentives news February 2014
Minimum Investments – Per Region Rumburk
• The EPSILON Subsidy Programme
Frýdlant
Varnsdorf
Děčín
LIBEREC
Nový Bor
Teplice
• Changes in Investment Incentives
ÚSTÍ nad Labem
M os t
Chom utov
Aš
Roudnice nad Labem
M ělník
Karlupy nad Vltavou
Slaný
KARLOVY VARY
S okolov
Podbo řany
K ladno R akovník Mariánské Lázn ě
Mnichovo Hradišt ě
Lovosice
Louny
Žatec
Cheb
Litom ěřice
Kada ň
Ostrov Kraslice
PRAHA
St říbro
Lysá nad Labem
Č eský Brod
P řelou č
Dob říš
Příbram Blovice
Sedl čany
Humpolec Nepomuk
Dom ažlice K latovy
Milevsko
Blatná Horaž ďovice
Tábor
S trakonice
Týn nad Vltavou
Vod ňany Vimperk
Prachatice
Havlíčk ův B rod
Pacov
Pelhřim ov
Pís ek Sušice
Chot ěboř
JIHLAVA
Vysoké Mýto
Ú s tí nad O rlicí Lanškroun Č eská T řebová
Poli čka Poli čka
S vitavy
Tel č Da čice
T řebo ň
Třebíč Moravské Bud ějovice
Trhové Sviny
Čes ký K rum lov Kaplice
Region I – minimum investment CZK 50 million Region II – minimum investment CZK 100 million Valid from 1 January 2014 Source: Map data © Czech Geodetic and Cadastral Authority
OLOMOUC
Přerov
Znojm o
N ový J ičín
Hranice
Byst řice pod Hostýnem
Valašské Mezi říčí
Holešov Šlapanice
Slavkov Bu čovice u Brna
Židlochovice Poho řelice
Bílovec
Pros tějov
Kyjov
Hustope če
Hodonín Mikulov
B řeclav
K rom ěříž
Fr
Frenštát pod Radhošt ěm
Rožnov pod Radhošt ěm
V s etín
Vizovice
Otrokovice ZLÍN
U hers ké Hradiš tě
Veselí nad Moravou
Luha čovice Uherský Brod
Orlová
K a r v in á
Haví řov
Odry
Lipník nad Be čvou
Bohumín
OSTRAVA
Konice
V yš kov
Krava ře Hlu čín
Vítkov
Mohelnice Uni čov Moravská Šternberk T řebová Litovel
Nám ěs ť Rosice nad BRNO Oslavou Ivan čice Moravský Krumlov
Opava
Rýma řov
Ku řim
J indř ichův Hradec
B runtál
Š um perk
Záb řeh
Nové Město na Žďár nad Morav ě Boskovice Byst řice S ázavou nad Pernštejnem Velké B lans ko Tišnov Mezi říčí
Sob ěslav
Č ESKÉ BUD Ě JOVICE
Králíky
Žamberk
Holice
Litomyšl
Sv ětlá nad Sázavou
Vlašim
Votice
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Krnov
nad Orlicí
Chrudim
B eneš ov
J es eník
R ychnov nad K něžnou Kostelec
Ř íčany Č áslav
Nové M ěsto nad Metují Dobruška
K utná Hora
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Jarom ěř
PARDUBICE
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Plzeň-m ěs to Horšovský Týn
N áchod
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Nový Bydžov
Č ernošice
Ho řovice
Stod
Dv ůr Králové
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Kralovice
Ný řany
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Vrchlabí Nová Paka
M ladá B oles lav
Brandýs nad Labem - Stará Boleslav
Jilemnice
Turnov S em ily
Neratovice
B eroun
T a c h ov
Železný Brod
Čes ká Lípa
Litvínov Bílina
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Valašské Klobouky
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ek
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ís t
Frýdlant nad Ostravicí
Č eský T ěšín
T řinec
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Jablunkov
Grants & Incentives news February 2014
Contacts If these issues relate to your company, we would be happy to provide you with more detailed information. Feel free to contact us at any time.
• The EPSILON Subsidy Programme • Changes in Investment Incentives
Grants CZ Luděk Hanáček Antonín Weber Patrik Filusz
+420 246 042 108
[email protected] +420 246 042 394
[email protected] +420 246 043 152
[email protected]
Deloitte Advisory s.r.o. Nile House Karolinská 654/2 186 00 Prague 8 - Karlín Czech Republic Tel.: +420 246 042 500 Fax: +420 246 042 555
Grants and Incentives SK Martin Rybar +421 (2) 582 49 11
[email protected] Incentives Daniela Fotrová
+420 246 042 921
[email protected]
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