1. INVESTMENT SUPPORT IN THE CZECH REPUBLIC Framework Programme for support of Technology centres and Business Support Services Investment incentives for manufacturing European programme – Potential European programme – ICT and BSS

2. MAP OF REGIONAL STATE AID INTENSITY (2007 – 2013) RegionState aid Prague0-10 % (2007-08) South-west 36 % (2007-10) 30 % (2011-13) Other regions40%

3. STATE AID MAP – PRAGUE (2007 – 2008) 10% 0%

4. NATIONAL SUPPORT INVESTMENT INCENTIVES FOR MANUFACTURING

5. INVESTMENT INCENTIVES FOR MANUFACTURING: MINIMUM INVESTMENT IN REGIONS SM OV LN LB DC PH RA KD TP JC PV CV CL MB LT MO UL PR PE PU PJ NA ST ZR KO PM NB PI HB SU PB TU NJ OP SY RO AB BK BR UO KV JN VS JE CR BE RK DO KT KH PS ME OC TA PZ BN HK TC ZN JI BI CH SO BM TR JH PT CB BV CK KI KM UH FM VYZL HO GroupMinimum Investment A 50 mil CZK / 1,8 mil. EUR / 2,4 mil. USD B 60 mil CZK / 2,1 mil. EUR / 2,9 mil. USD C 100 mil CZK / 3,6 mil. EUR / 4,8 mil. USD Valid: January 1 – June 30, 2008

6. INVESTMENT INCENTIVES FOR MANUFACTURING: FORM OF SUPPORT Following items summed up cannot exceed the ceiling of state aid ╌ Tax incentive ╌ New firms: corporate tax relief for max. 5 years ╌ Existing firms: partial tax relief for max. 5 years ╌ Current corporate income tax rate = 21 % ╌ Job creation grants ╌ Offered in regions with the highest rate of unemployment only (A) ╌ Training and retraining grants Granted above the ceiling of state aid

7. NATIONAL SUPPORT FRAMEWORK PROGRAMME FOR SUPPORT OF TECHNOLOGY CENTRES AND BUSINESS SUPPORT SERVICES CENTRES

8. PROGRAMME TC/BSS: TYPES OF SUPPORTED PROJECTS Technology Centres (TC) ╌ Development and innovation activities with the close linkage to production of high-tech products and technologies, including development of specific software that is part of these products, in the following fields: ╌ aerospace ╌ computers and machinery ╌ electronics and microelectronics ╌ telecommunications ╌ pharmaceutics ╌ motor vehicles ╌ etc.

9. PROGRAMME TC/BSS: TYPES OF SUPPORTED SERVICES Business Support Services (BSS) ╌ Software Development Centres ╌ Expert and Solution Centres ╌ Shared Service Centres ╌ High-Tech Repair Centres ╌ Customer Contact Centres

10. EUROPEAN PROGRAMME POTENTIAL PROGRAMME

11. EU PROGRAMME: POTENTIAL – SUPPORTED ACTIVITIES ╌ Projects to establish or extend a development centre (department) ╌ Activities of the centre: research, development and innovation of product and technologies ╌ If there is an expectation that result of the centre will be transferred and used in production.

12. POTENTIAL VERSUS FRAMEWORK PROGRAMME TC/BSS PotentialFramework Programme TC PragueNoYes (selected districts) Beneficiary - enterprise of any size Basic provisions - Minimum investment CZK 10 million (CZK 5 million for SME) - Minimum investment CZK 10 million - 30 newly created jobs Eligible costs - Investment - Wages, travel costs, studies (SME only) - Wages - Costs for training and retraining

13. EUROPEAN PROGRAMME ICT AND BUSINESS SUPPORT SERVICES

14. EU PROGRAMME: ICT AND BSS - SUPPORTED ACTIVITIES ╌ Creation and development of IS/ICT solutions and applications ╌ Shared Services Centres ╌ Customer Contact Centres ╌ High-tech Repair Centres for Products and Technologies

15. EU PROGRAMME ICT AND BSS VERSUS FRAMEWORK PROGRAMME TC/BSS ICT and BSSFramework programme PragueNoYes (selected districts) Beneficiary - enterprise of any size Basic provisions - x newly created job positions - Minimum amount of investment CZK 1/2/5 million - x newly created jobs - Minimum investment CZK 10 million Eligible costsWages OR InvestmentWages

16. THANK YOU FOR YOUR ATTENTION CzechInvest, the Investment and Business Development Agency, is an agency of the Ministry of Industry & Trade of the Czech Republic You can contact us at: incentives@czechinvest.org +420-296-342-661