Investments, R&D and innovation support in Slovakia

 

In Slovakia, there are a number of state aid measures and EU instruments to assist companies build new facilities, and support expansion or diversification of their production, or increase their innovation potential. Enterprises are limited in their business decisions by different legislative rules and are burdened by complicated aid schemes.

The PwC team specializing in the preparation and implementation of projects co-financed by public funds, has been involved in the successful implementation of investment projects of many major global companies in Slovakia, which have received state aid, or a non-repayable financial contribution from EU funds. During our 10-year’s experience, we have dealt with many problems that our clients faced and we helped our clients to solve them successfully.

In 2015 in Slovakia, a measure was introduced for supporting R&D activities in the form of a R&D super-deduction and we have assisted a number of companies to apply this measure. Currently, we are preparing for a new measure which will be introduced in Slovakia, the patent box.

 

“Industry 4.0, digitization, and the circular economy are challenges every production company is currently facing; the response to this challenge being the optimisation of production procedures and processes with the use of the latest technological knowledge. The implementation of innovations and R&D outputs into practice is also possible thanks to subsidies from public sources in the form of investment incentives, from EU funds, the patent box, or by increasing the deduction of R&D costs to 100%.”

Lenka Bartoňová, Senior manager

Investment incentives services

Due diligence

Risk assessment of a business case and compliance with state aid rules.

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State aid documentation

  • Preparation of a business plan. A business plan must contain specific information which the Slovak Government requires and which highlights how the investment will benefit Slovakia and particular region.
  • Data analysis.
  • Preparation counterfactual analysis.
  • Calculation of the intensity of requested state aid and the gross grant equivalent.
  • Preparation of a planned utilization of tax allowance based on the Income Tax Act and utilization of other forms of incentives.
  • Preparation of an analysis of competitors on the relevant market.
  • Preparation of all compulsory attachments to the business plan.

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Acceptance of the Investment Aid

  • Elaboration of Acceptance of Investment Aid offer.
  • Preparation of all necessary declarations.

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Coordinating government approval process

  • We will prepare drafts of any necessary replies to the state authorities which may arise from the inter-departmental review.
  • We will communicate with the Slovak Ministry of Economy and other relevant state authorities.

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Notification process to the European Commission

  • Preparation of a notification strategy.
  • Preparation of all required documentation for submission to the EC.
  • Assistance and participation in all meetings with Slovak authorities and the EC.
  • Preparation of all responses to all additional questions raised by the EC.

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Implementation of the approved aid, monitoring and reporting

  • Preparation of an annual monitoring report on the implementation of investment.
  • Preparation of a report on investment completion.
  • Preparation of an annual report on the utilization of investment.
  • Preparation of a final evaluation report.
  • Consultancy during a state aid audit.

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For new investors coming to Slovakia we can prepare: 

A location study according to the condition of the available infrastructure, workforce and investment aid conditions.

We can assist with all obligations, such as setting up a new company, amendment of contractual obligations with suppliers and customers, accounting, tax and salary services, etc. 

EU Funds

Project eligibility pre-check

  • Assessment of whether the project criteria meets the published call criteria.

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Project preparation and submission

  • Advice on all aspects regarding call conditions and scoring criteria for successful approval process.
  • Account establishment on the ITMS2014+.
  • Preparation of an Investment Plan.
  • Preparation of a financial analysis of the project.
  • Preparation of all obligatory enclosures.
  • Preparation of an application form using the ITMS2014+ system.
  • Assistance and participation in all meetings with Slovak authorities.

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Public procurement

  • Administrative assistance with public procurement services.
  • Preparation of all project documents necessary for public procurement.
  • Preparation of all contracts with the project suppliers.

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Project implementation

  • Project management (preparation of all annual monitoring reports, final monitoring report).
  • Financial management (preparation of cash grant requests for reimbursement, prepayment).
  • Change management.

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R&D super-deduction

Workshop

  • Assessment whether particular costs could be qualified as eligible for R&D super-deduction.
  • Separation of R&D activities from other related activities.
  • Preparation of R&D super-deduction manual.
  • Setting up the mechanism for eligible cost recording.

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Preparation of R&D project

  • Preparation of the project.
  • Preparation of all project obligatory enclosures.
  • Calculation of the super-deduction.

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Patent box

Tax exemption of 50% of revenues from the use of a patent, design, utility models or computer programme

  • Setting up the mechanism for eligible cost recording as regards development activities.
  • Setting up the mechanism for recording of activated cost split into intangible asset resulting from R&D.
  • Preparation of documentation for a tax audit.
  • Calculation of the amount of exemption.

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Tax exemption of 50% of revenues from the sale of products during which the production of patent was used

  • Setting up the mechanism for recording of costs incurred on the development of an intangible asset.
  • Setting up the mechanism for calculation of the product price.
  • Assistance with the recording of the description of the use of protected intangible asset during production process.
  • Preparation of documentation for a tax audit.
  • Calculation of the amount of exemption.

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Contact us

Christiana Serugová

Partner, Tax & Legal Leader, PwC Slovakia

Tel: +421 259 350 614

Lenka Bartoňová

Senior Manager, PwC Slovakia

Tel: +421 2 59350 694

Jana Kopasová

Senior Consultant, PwC Slovakia

Tel: +421 904 939 596

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