New Development Law
The main changes it includes are:
- Introduction of 13 new investment schemes
- New regulations in the evaluation procedures
- Increase of aid rates in Prefectures
The 3 main changes in the New Development Law
13 Thematic aid schemes with a thematic focus, instead of a horizontal approach.
For the first time, possibilities are utilized, regarding the inclusion of investment plans, independently, in its other parts, apart from the aid with regional character. Through this initiative, aid in fields such as research, innovation and environmental protection, as well as social assistance, such as vocational training and assistance for disadvantaged or disabled workers, can now become integrated investment plans.
Procedure for evaluation and monitoring of the implementation of investment plans within 60 days
Effective and efficient procedures for evaluation and control of the implementation of investment plans are introduced. An evaluation is foreseen within 45 days from the expiration of the status or within 30 days for the cases of immediate evaluation. In case the duration of the evaluation exceeds these time limits, the audit is assigned to an independent certified auditor, who must complete it within 10 days. The aim is to address bureaucratic obstacles that were a brake on investment in our country.
The new state aid map enters into force on January 1st, 2022
In the 2022-2027 period the aid rates will potentially reach:
- up to 50% for large enterprises
- up to 60% for medium and
- up to 70% for small enterprises
The investment incentives offered by the Development Law
Tax exemption
Exemption from income tax. The institution can use the full eligible aid on tax exemption within 15 tax years
Subsidy
Free provision from the State of a cash amount to cover part of the supported costs of the investment plan
Financial leasing subsidy
Coverage by the State of part of the financial leasing for the acquisition of new mechanical and other equipment
Subsidizing the cost of the generated employment
Coverage by the State of the wage cost of the new jobs created by the investment plan. Calculated for two (2) years from the creation of each job position.