BRATISLAVA, October 8, (WEBNOVINY) — The Slovak Ministry of Economy and the Ministry Finance have finally agreed on providing investment incentives to companies Mondi SCP and Samsung. Finance Minister Peter Kazimir said last week he will try to delay these investment incentives until later, as next year he wants to focus on the consolidation of public finances. The Ministry of Economy has now submitted a new text on these incentives for investors. „This represents a significantly reduced volume of tax breaks next year for Samsung. Mondi SCP will not get any tax breaks the next year,“ Stanislav Jurikovic, spokesman Economy Minister told SITA news agency after the successful negotiations.
Based on the new proposal, next year Samsung would draw incentives in the form of tax breaks of only EUR 980,000 instead of requested EUR 2.5 million. A year later, it would be EUR 8.92 million and in 2015 EUR 9.9 million. Overall, Samsung should receive incentives of EUR 19.8 million. The company in return pledges to invest EUR 70 million to modernize its plant in Galanta and preserve 760 jobs for at least six years.
Mondi SCP will start drawing incentives in the form of income tax relief in 2014, while according to the original plans it should have been as of next year, when it should have used a tax credit of EUR 10.5 million. In the first year, i.e., in 2014, the company will be able to apply for tax relief of EUR 6 million. Overall, this company should receive investment aid of EUR 25.4 million. The company plans to invest EUR 95 million over four years to expand its factory and preserve 766 jobs.
The Cabinet should decide on Wednesday on incentives for seven other companies. They are Magneti Marelli, Bekaert Slovakia, Delta Electronics, Continental Automotive Systems Slovakia, Muehlbauer, and Ekoltech Fagor Ederlan. These investors are planning to invest a total EUR 173 million of Slovakia by the end of 2017 and to create or preserve 1,900 jobs. Their investment aid in the form of income tax relief is nearly EUR 56 million. The ministries also agreed on providing incentives for these investors. „These investors should benefit from the incentives after 2014,“ said Jurikovic.
SITA