CzechInvest
Investment 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*) $ ...
mission
CZECHINVEST
Investment & Business Development Agency
to support foreign direct investment
to develop local compani...
Our Services to Potential Investors
Business Intelligence (high-quality information)
Consultancy on financial support avai...
Priority Sectors (Investment Opportunities)
Aerospace
Automotive
Business Support Services
Electrical Engineering and Elec...
More Projects with Added-Value
Manufacturi
ng
37%
Shared
Service
Centres
8%
Technologi
cal Centres
55%
Year 2013
Source: C...
Investments by Country of Origin
(total value 1993 - 2013)
Source: CzechInvest, 2014
Belgium, Luxemburg,
Netherlands
6,24%...
Investments by Sectors
(total value 1993 - 2013)
Source: CzechInvest, 2014
strategic services
center
0,89%
paper, wood
pro...
Company Sector
Volkswagen Automotive
Hyundai Automotive
TPCA Automotive
ABB Electronic components
Caterpillar Solar Turbin...
Major Investors - Manufacturing
╌ ABB (indus.+el.)
╌ BOSCH (aut.)
╌ CONTINENTAL (aut.)
╌ DAIKIN (indus.+el.)
╌ DENSO (aut....
Major Investors - Business Support Services
╌ ACCENTURE (ss)
╌ ADP (bpo)
╌ BANK AUSTRIA CREDIT (ss)
╌ COVIDIEN (ss)
╌ DSG ...
Major Investors - IT & Software Development
╌ ACISION
╌ ADOBE
╌ AVG TECHNOLOGIES
╌ BOHEMIA INTERACTIVE
╌ COMPUTER ASSOCIAT...
Major Investors - Technology Centres
╌ BANG & OLUFSEN (el.)
╌ ROBERT BOSCH (aut.)
╌ DENSO (aut.)
╌ EMERSON (el.)
╌ GE AVIA...
Investment Incentives Act Proposal
Valid from January 1, 2015
Supported Activities
-- Manufacturing industry
- Production facilities
-- Technology centres
- R&D centres
-- Business sup...
Maximum ceiling of state aid
-- Long-term assets, of which at least half must be new
machinery
or
-- 2-years wage costs of...
Eligibility Criteria
Type of Activity Investment into Assets (USD m) New Jobs Required
Manufacturing Industry
2,5 -5
half ...
Types of Incentives - Manufacturing
Up to 25% Ceiling of State Aid
-- Corporate Income Tax relief for 10 years
-- Real Est...
Types of Incentives – Technology Centres
and Business Support Services Centres
Up to 25% Ceiling of State Aid
-- Employmen...
Strategic Investment – Eligibility Criteria
Type of Activity Investment into Assets (USD m) New Jobs Required
Manufacturin...
Thank you for your attention
Please contact us
www.czechinvest.org
Investment and Business Development Agency
State contributory organization established in 1992
Štěpánská 15
120 00 Praha
C...
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Kolvekova - Investment Incentives

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Kolvekova - Investment Incentives

  1. 1. CzechInvest Investment and Business Development Agency Marcela Kolveková Head of Investment Incentives Section
  2. 2. 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
  3. 3. 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 CzechInvest Investment and Business Development Agency Source: CzechInvest, 2012
  4. 4. 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
  5. 5. 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 Source: CzechInvest, 2014
  6. 6. More Projects with Added-Value Manufacturi ng 37% Shared Service Centres 8% Technologi cal Centres 55% Year 2013 Source: CzechInvest, 2014
  7. 7. Investments by Country of Origin (total value 1993 - 2013) Source: CzechInvest, 2014 Belgium, Luxemburg, Netherlands 6,24% Czech Republic 22,84% China, India 0,43% Denmark, Finland, Sweden, Norway 2,13% France 3,89% Ireland, Great Britain 3,10% Italy, Cyprus, Spain 3,18% Japan 12,64% South Korea 5,88% Germany 22,41% Canada, Mexico 1,78% Austria, Switzerland 4,73% Taiwan 1,46% USA 8,03% Poland, Slovakia, Russia 0,41% Other 0,86%
  8. 8. Investments by Sectors (total value 1993 - 2013) Source: CzechInvest, 2014 strategic services center 0,89% paper, wood processing 3,97% electronics, electrotechnics 10,29% plastics, rubber 5,60% chemistry, pharmacy 7,13% IT and software development 2,07% metal products 1,76% aircrafts 0,39% biotechnology, medical equipment 0,30% other 17,70% food processing 0,68% engineering 8,99% manufacture of motor vehicles 40,23%
  9. 9. 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) Source: CzechInvest, 2014
  10. 10. 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.) Source: CzechInvest, 2014
  11. 11. 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 Source: CzechInvest, 2014
  12. 12. 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 Source: CzechInvest, 2014
  13. 13. 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.) Source: CzechInvest, 2014
  14. 14. Investment Incentives Act Proposal Valid from January 1, 2015
  15. 15. 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.
  16. 16. 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 Source: Act on Investment Incentives No. 72/2000 Coll. -- 25 % of eligible costs (Prague 0%) Eligible costs
  17. 17. Eligibility Criteria Type of Activity Investment into Assets (USD m) New Jobs Required Manufacturing Industry 2,5 -5 half of which into new machinery 20 Technology Centres 0,5 half of which into new technology 20 Business Support Services Centres 0 20-70 Source: Act on Investment Incentives No. 72/2000 Coll.
  18. 18. 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) Source: Act on Investment Incentives No. 72/2000 Coll.
  19. 19. 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) Source: Act on Investment Incentives No. 72/2000 Coll.
  20. 20. Strategic Investment – Eligibility Criteria Type of Activity Investment into Assets (USD m) New Jobs Required Manufacturing Industry 25 half of which into new machinery 500 Technology Centres 10 half of which into new technology 100 Source: Act on Investment Incentives No. 72/2000 Coll. -- Cash grant on capital investment of 10 - 12,5% of eligible costs -- Cash grant on capital investment must be approved by the Czech Government
  21. 21. Thank you for your attention Please contact us www.czechinvest.org
  22. 22. Investment and Business Development Agency State contributory organization established in 1992 Štěpánská 15 120 00 Praha Czech Republic

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