There is currently an amendment to the Act on Investment Incentives under review. The amendment proposes abolishing the obligation to submit each investment incentive application for approval to the Government of the Czech Republic. Instead, the Czech Government would only continue to
approve applications for investment incentives in the form of strategic investments, whereas all other applications would be approved by a relevant ministry (so long as the relevant conditions are met), as was the case previously.

In 2021, 14 applications for investment incentives were approved, and so far in 2022, only a single application has been approved. For comparison, in 2019, before the amendment that introduced the obligation to submit each application for investment incentives to the Government, 74 applications
were approved. Certainly, one of the reasons for the downward trend in the number of approved applications is that the current necessity to submit each application for investment incentives to the Government disproportionately lengthens the entire approval process from 3−5 months to 9−12
months.

Along with the changes to the Act on Investment Incentives, changes in the implementing legislation on investment incentives were also submitted for review. Should these changes come into force, the conditions for obtaining investment incentives will be tightened, specifically concerning higher added value.

Additionally, due to the turbulent economic situation, an expert group will be established which will continuously evaluate the system of investment incentives, be able to react to current economic trends, and, accordingly, submit proposals for changes to the conditions for investment incentives.

Petr Mašek, Denisa Holbová
PwC | Daňové a právní služby