INVESTMENT SUPPORT OF INVESTORS

 

1)    KEY LEGAL REGULATIONS

  • Act No. 231/1999 Coll. on the State Aid as amended (hereinafter the „State Aid Act“)
  • Act No. 561/2007 Coll. on Investment Aid and amendment of certain laws as amended   (hereinafter the „Investment Aid Act“)
  • Act No. 5/2004 Coll. on Employment Services and amendment of certain laws as amended   (hereinafter the „Employment Services Act“)
  • Articles No. 107 - 109 of the European Union Functioning Treaty
  • EC Regulation No. 800/2008
  • EC directives on the national regional aid during period 2007-2013

2)    TERMS OF INVESTMENT AID PROVISION

2.1 Investment aid beneficiary

  • Legal entity or physical entity – entrepreneur with registered office in territory of the Slovak Republic, incorporated in the Company Register or Trade Register that will implement the investment plan in the Slovak Republic and whose investment projects meet the Investment Aid Act terms.
  • The beneficiary shall be 100% owned by the applicant or the applicant shall control the beneficiary.
  • Beneficiary shall not be an entrepreneur facing problems as defined in the Article No. 1, clause 7 of EC Regulation No. 800/2008 or an entrepreneur subject to claimed investment aid reimbursement based on the preceding EC decision on unreasonable aid that is incompatible to the common market.

2.2 Investment aid provider

  • Ministry of Economy SR, in case of investment aid in the form of subsidy to procured long-term tangible and intangible assets,
  • Ministry of Transportation, Construction and Regional Development SR (hereinafter „SR Ministry of Transportation“), in case of investment aid in the area of tourism in the form of subsidy to procured long-term tangible and intangible assets,
  • Ministry of Finances SR through factually and locally competent tax administrator in case of investment aid in the form of income tax relief pursuant to § 30a of the Income Tax Act,
  • Ministry of Labor, Social Matters and Family SR (hereinafter the „Ministry of Labor“) through the Center of Labor, Social Matters and Family (hereinafter the „Center“)  in case of investment aid in the form of contribution to new job creation pursuant to § 53d of the Employment Services Act,
  • Owner or administrator of real estate in factual competence of the public administration authorities or the Slovak Land Fund, municipality, higher territorial whole or organization in their founding competence, in case of investment aid in the form of intangible assets transfer or exchange of tangible assets for the value lower than general value of the assets.

2.3 Investment aid provision terms

  1. Investor shall create a new job in the district with average recorded unemployment rate, calculated from the available headcount of job applicants published by the Center per a calendar year immediately preceding the calendar year in which the investment plan was submitted to SR Ministry of Economy or SR Ministry of  Transportation in case of investment aid to the area of tourism, exceeds the average recorded unemployment rate in the Slovak Republic calculated from the available headcount of job applicants. Meeting the requirement of average recorded unemployment rate calculated according to the first sentence is not required in case of support of technology centers and strategic services centers creation (resulting from GGE map).
  2. Investor shall create a new job in the district with average recorded unemployment rate, calculated from the available headcount of job applicants published by the Center per a calendar year immediately preceding the calendar year in which the investment plan was submitted to SR Ministry of Economy or SR Ministry of  Transportation in case of investment aid to the area of tourism, falls short below the average recorded unemployment rate in the Slovak Republic calculated from the available headcount of job applicants but neighbors with at least two districts with average recorded unemployment rate exceeding the average recorded unemployment rate in the Slovak Republic calculated from the available headcount of job applicants, or is higher by at least 25% at least in one of the neighboring districts than average recorded unemployment rate in the Slovak Republic calculated from the available headcount of job applicants (resulting from GGE map).                                                                            Since 2009, district Bratislava has been removed from investment aid entitlement.
  3. Pursuant to the Investment Aid Act, supported areas mainly refer to industrial production, technology and innovation centers, strategic services centers and tourism. The Investment Aid Act specifies individual terms of investment aid provision for each supported area.  

3)    INVESTMENT AID APPROVAL PROCEDURE

The Investment Aid Act represents a state aid scheme, thus notification of any approved investment aid to EC isn´t necessary. Investment projects with legitimate cost exceeding Eur 100 million are subject to obligatory notification to EC.

Procedure:

  1. Investor shall submit the investment plan/ project for approval to SR Ministry of Economy (hereinafter „MH SR“).
  2. MH SR shall ensure preparation of expertise to the project SARIA.
  3. MH SR shall issue preliminary confirmation on met legal requirements by the investor.
  4. MH SR shall prepare proposal of the investment aid provision, containing the aid extent, form, amount based on particular aid forms and the terms of investment aid provision. MH SR shall afterwards submit the proposal to the investment aid providers.
  5. Investment aid providers shall evaluate preconditions of investment aid provision requirements meeting and send the written standpoints to MH SR with expressed approval/ disapproval of the investment aid provision.  
  6. MH SR shall prepare the investment aid offer on basis of affirmative standpoints.  
  7. Investor shall file application for investment aid provision based on the written MH SR offer.
  8. Based on the application for investment aid provision, MH SR shall submit the offer of investment aid provision to SR Cabinet for approval.
  9. After approval of the offer by SR Cabinet, MH SR shall issue decision on approval of the investment aid to the applicant.
  10. The beneficiary shall conclude implementation contracts with the investment aid providers  (see clause 2.2 – Investment Aid Providers).

4)    THE CENTER STEPS AFTER INVESTMENT AID APPROVAL

Investment aid is provided on basis of contract concluded between the investment aid provider (the Ministry of Labor) and the beneficiary through the Center. The contract shall be concluded on basis of submitted project by the investment aid beneficiary.  

4.1 CONTRACT OF PROVISION OF CONTRIBUTIONS TO NEW JOBS CREATION

Content requirements:

  • Identification data of contract parties,
  • Count and structure of newly created jobs,
  • Date of jobs engagement by the agreed employee headcount
  • Type of cost that can be covered from the contribution,
  • Amount, date and method of contribution provision,
  • Method of check of the agreed terms fulfillment,
  • Method and date of contribution clearing on accounts,
  • The employer´s commitment to return the contribution or its aliquot part if it hasn´t been drawn up within the agreed term or for the agreed purpose or if it was provided without entitlement thereto or in higher amount without the beneficiary´s cause and the date/ terms of the contribution returning,  
  • Terms of the contract termination, and
  • Further agreed requirements.

Based on MH SR decision on approved investment aid, Department of Investment Aid to Investors of the Center shall prepare draft Contract. In case of submitted incomplete documentation or evaluation of the submitted project as incomplete or unfeasible, the Center shall require the investor to complete/ rework the project. Department of Investment Aid to Investors will prepare draft Contract after completion/ reworking of the project and completion of required documentation. The Contract shall be subject to annotation proceedings pursuant to valid internal standard. The annotations to/ proposed amendment of the Contract shall be incorporated in the Contract by the Department of Investment Aid to Investors in cooperation with Law Department of the Employment Services. After termination of the annotation proceedings and completion of draft Contract, the Contract shall be submitted to general director of the Center for purpose of signing. The act of the Contract signing with the investor and the general director shall be agreed afterwards.

4.2. FULFILLMENT OF DUTIES RESULTED FROM CONTRACT

Beneficiary´s duties:

  1. Beneficiary is obliged to create and engage a new job from the date specified in the Contract. Every newly-created job shall be kept engaged by the beneficiary for 5 consecutive years.  
  2. If a period of vacancy during monitored period exceeds 90 consecutive calendar days, the beneficiary shall return aliquot part of the aid to the aid provider within one month from the period end.
  3. Per every employee admitted to the newly-created job, the beneficiary shall submit the documents stated in the Contract to the aid provider, namely the labor contract copy, copy of the application for health insurance, social insurance, old-age retirement insurance, copy of document on labor contract termination in case of not engaged job and other documents required by the aid provider.
  4. Beneficiary shall provide documents to the aid provider, proving actually spent cost to payment of employee wage including due insurance deliveries at the latest on the 25th calendar day of a month following the month in which the job is considered having been engaged for 12 months.  
  5. During five-year period within Contract duration, the beneficiary shall submit the monitoring reports to the aid provider on half-year basis.
  6. Following termination of the 5-year period, the beneficiary shall submit the Final Monitoring Report to the aid provider and this act will constitute termination of the financial aid provision.

Provider´s duties:

  1. Provider shall provide the aid in the form of refund. Maximum total amount of the aid for newly-created jobs, maximum amount of the aid for a newly-created job and percentage of legitimate cost refunded by the provider is stated in the Contract. 
  2. At the investment aid provision, amount of the provision will be determined according to regional affiliation. Therefore the provided investment said shall be recalculated per every job depending on CCP of employee working on the supported job position.
  3. The investment aid is provided on basis of the documents submitted by the beneficiary within the first two years of the newly-created job engagement.
  4. Provider shall check submission of the documents on newly created jobs to which the investment aid was provided and this duty shall be in effect until termination of five years from the first day of the newly created job engagement.   
  5. Provider shall check the monitoring reports submitted by the beneficiary during the five year period of the Contract implementation on half-year basis.
  6. Provider shall perform continuous audits in the beneficiary´s registered office aimed to observe the investment aid requirements meeting as stated in the Act.
  7. Following termination of the 5-year period, the provider shall audit and evaluate the Final Monitoring Report submitted by the beneficiary and this act will constitute termination of the financial aid provision.

 

Dátum vytvorenia stránky: 31.01.2013
Dátum aktualizácie: 09.08.2013
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