kolvekova - investment incentives

CzechInvestInvestment and Business Development Agency

Marcela Kolveková

Head of Investment Incentives Section

Population (2013) 10.5 million

Labour force (2013) 5.3 million

Unemployment (actual at 31.3.2014) 8.3%

GDP p.c. (2014*) $ 19 170

GDP growth (2013*) -0.9%

GDP growth (2014*) 1.7%

Annual inflation (March 2014) 1.0%

Average monthly

wage (March 2014) $ 1, 349

Czech Republic:

Basic Data

Source: Czech Statistical Office 2014, Czech Ministry of Finance. April 2014

* forecast

mission

CZECHINVEST

Investment & Business Development Agency

to support foreign direct investment

to develop local companies

to implement business-development programs

to improve business environment

Ministry of Industry and Trade

CzechInvestInvestment and Business Development Agency

Source: CzechInvest, 2012

Our Services to Potential Investors

Business Intelligence (high-quality information)

Consultancy on financial support available

for potential investors

Identification of suitable green/brownfield sites,

production facilities and offices

Identification of potential acquisition,

joint-venture or supplier partners

Tailor-made visits to the Czech Republic

Liaising with government bodies

Aftercare services

All CzechInvest‘s services are free of charge

Priority Sectors (Investment Opportunities)

Aerospace

Automotive

Business Support Services

Electrical Engineering and Electronics

Energy & Cleantech

Hi-tech Engineering

ICT

Life Sciences

Materials and Nanotechnologies

R&D


More Projects with Added-Value

Manufacturi

ng37%

Shared

Service Centres

8%

Technologi

cal Centres55%

Year 2013


Investments by Country of Origin

(total value 1993 - 2013)


Belgium, Luxemburg, Netherlands

6,24%

Czech Republic22,84%

China, India0,43%

Denmark, Finland, Sweden, Norway

2,13%

France3,89%

Ireland, Great Britain3,10%

Italy, Cyprus, Spain3,18%

Japan12,64%

South Korea5,88%

Germany22,41%

Canada, Mexico1,78%

Austria, Switzerland4,73%

Taiwan1,46%

USA8,03%

Poland, Slovakia, Russia0,41% Other

0,86%

Investments by Sectors

(total value 1993 - 2013)


strategic services center0,89%

paper, wood processing

3,97%

electronics, electrotechnics

10,29%plastics, rubber

5,60%

chemistry, pharmacy7,13%

IT and software development

2,07%

metal products1,76%

aircrafts0,39%

biotechnology, medical equipment

0,30%other

17,70%food processing

0,68%

engineering8,99%

manufacture of motor vehicles40,23%

Company Sector

Volkswagen Automotive

Hyundai Automotive

TPCA Automotive

ABB Electronic components

Caterpillar Solar Turbines Machinery

Siemens Engineering

DHL IT data centre, Strategic services

Red Hat IT (software development)

IBM IT, Strategic Services

Honeywell Aerospace, Strategic services

Significant Investors in the Czech Republic(mediated by CzechInvest)


Major Investors - Manufacturing

╌ ABB (indus.+el.)

╌ BOSCH (aut.)

╌ CONTINENTAL (aut.)

╌ DAIKIN (indus.+el.)

╌ DENSO (aut.)

╌ FOXCONN (el.)

╌ HONEYWELL (indus)

╌ HYUNDAI (aut.)

╌ KIMBERLY CLARK (med.)

╌ MAFRA (media)

╌ MAGNA (aut.)

╌ NEMAK(manuf.)

╌ PANASONIC (el.)

╌ SAINT GOBAIN (buil.)

╌ SHIMANO (indus.)

╌ SIEMENS (el.+aut.)

╌ SYNTHOS (chem.)

╌ TEVA (farm.)

╌ TORAY (tex.)

╌ TOYOTA+PEUGEOT+CITROEN

╌ TRW (aut.)

╌ VOLKSWAGEN (aut.)

╌ CATERPILLAR (indus.)

╌ JOHNSON CONTROLS (aut.)


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Major Investors - Business Support Services

╌ ACCENTURE (ss)

╌ ADP (bpo)

╌ BANK AUSTRIA CREDIT (ss)

╌ COVIDIEN (ss)

╌ DSG INTERNATIONAL (ss+cc)

╌ EBAY (ss)

╌ EXL SERVICE (ss)

╌ EXXONMOBIL (ss)

╌ GARDNER DENVER

╌ GE MONEY BANK (cc)

╌ GRUPO ATENTO (cc)

╌ IBM (bpo)

╌ INBEV (ss)

╌ JOHNSON&JOHNSON (ss+cc)

╌ LUFTHANSA (cc)

╌ MONSTER (ss+cc)

╌ MOTOROLA (ss)

╌ REGUS (ss)

╌ SAP (ss)

╌ SIEMENS (ss)

╌ SITA (ss)

╌ ORACLE (ss)

╌ TESCO STORES (ss)

bpo = business process outsourcing cc = call centres, ss = shared services










Major Investors - IT & Software Development

╌ ACISION

╌ ADOBE

╌ AVG TECHNOLOGIES

╌ BOHEMIA INTERACTIVE

╌ COMPUTER ASSOCIATES

╌ DEUTSCHE BÖRSE

╌ DHL

╌ HEWLETT PACKARD

╌ IBM

╌ INFOSYS

╌ MICROSOFT

╌ NESS TECHNOLOGIES

╌ ORACLE

╌ PIXMANIA

╌ RED HAT

╌ SKYPE

╌ SOLARWINDS

╌ STORA ENSO

╌ SUSE LINUX

╌ TELEFÓNICA

╌ TELOGIC

╌ TEREDATA

╌ TIETO








Major Investors - Technology Centres

╌ BANG & OLUFSEN (el.)

╌ ROBERT BOSCH (aut.)

╌ DENSO (aut.)

╌ EMERSON (el.)

╌ GE AVIATION (aero.)

╌ HONEYWELL (el.)

╌ INGERSOLL RAND

╌ LATECOERE (aero.)

╌ LONZA (bio)

╌ MERCEDES-BENZ (aut.)

╌ OLYMPUS (med.)

╌ ON SEMICONDUCTOR (el.)

╌ PANASONIC (el.)

╌ PROCTER&GAMBLE (chem.)

╌ RICARDO (aut.)

╌ RIETER

╌ SIEMENS (el.)

╌ VARROC LIGHTING (aut.)

╌ VOLKSWAGEN (aut.)

╌ VISTEON (aut.)










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Investment Incentives Act ProposalValid from January 1, 2015

Supported Activities

-- Manufacturing industry

- Production facilities

-- Technology centres

- R&D centres

-- Business support services centres

- Shared Service centres

- IT/SW development centres

- High-tech repair centres

- Data centres

- Call centres

Source: Act on Investment Incentives No. 72/2000 Coll.

Maximum ceiling of state aid

-- Long-term assets, of which at least half must be new

machinery

or

-- 2-years wage costs of employees on newly created positions


-- 25 % of eligible costs (Prague 0%)

Eligible costs

Eligibility Criteria

Type of Activity Investment into Assets (USD m) New Jobs Required

Manufacturing Industry2,5 -5

half of which into new machinery20

Technology Centres0,5

half of which into new technology20

Business Support Services Centres

0 20-70


Types of Incentives - Manufacturing

Up to 25% Ceiling of State Aid

-- Corporate Income Tax relief for 10 years

-- Real Estate Tax relief for 10 years

-- Job creation grants (up to USD 15 000 / per new employee)

-- Transfer of land at favourable price

-- Cash grant on capital investment

(in case of strategic investment)

Above the Ceiling of State Aid

-- Training and retraining grants (up to 50% of training

costs)


Types of Incentives – Technology Centres

and Business Support Services Centres

Up to 25% Ceiling of State Aid

-- Employment Social Security relief for 10 years

-- Real Estate Tax relief for 10 years

-- Job creation grants (up to USD 15 000 / per new employee)

-- Transfer of land at favourable price

-- Cash grant on capital investment

(in case of strategic investment)

Above the Ceiling of State Aid

-- Training and retraining grants (up to 50% of training

costs)


Strategic Investment – Eligibility Criteria

Type of Activity Investment into Assets (USD m) New Jobs Required

Manufacturing Industry25

half of which into new machinery500

Technology Centres10

half of which into new technology100


-- Cash grant on capital investment of 10 - 12,5% of eligible costs

-- Cash grant on capital investment must be approved by the Czech Government

Thank you for your attention

Please contact us

www.czechinvest.org

Investment and Business Development AgencyState contributory organization established in 1992

Štěpánská 15

120 00 Praha

Czech Republic