Incentives and EU Grants

Transcription

1 Investment and State Aid Incentives and EU Grants February 2010

2 What is State Aid? Are you considering implementing an investment project in Slovakia, or expanding or changing your business activities, and need financial support? State aid means any support in any form provided for business purposes or in relation to the business, directly or indirectly from state budget, its own budget, or funds, to an entrepreneur. State aid can be provided pursuant to Act 231/1999 Coll. on State Aid, as amended, a special regulation, or the European Community legal regulations related to state aid. If so, we would be pleased to assist you with your application for any type of state aid for the investment project, either in the form of investment incentives or financing from EU Funds. Our assistance includes a detailed assessment of opportunities that your business has for being granted support, drafting the investment plan and the application for the state aid, subsequent assistance in communicating and negotiating with the relevant authorities, support in project implementation, and drafting monitoring reports during the drawing period. State aid can be granted under the state aid schemes, or as individual state aid in a direct or indirect form. The direct form includes: a) a subsidy, contribution or grant; b) compensation of interest or part of interest on a loan provided to an entrepreneur; c) payment of part of a loan; and d) repayable financial aid. The indirect form of state aid includes: a) the provision of a state or bank guarantee; b) relief of taxes, penalties, interest, or other sanctions; c) the sale of immovable assets to the government or a municipality at below market price; d) the provision of advisory services for free or for a partial consideration; and e) the postponement of a tax payment or payment of tax in instalments. Investment Aid Investment aid is regional support aimed at encouraging investments in disadvantaged regions and in creating new jobs in Slovakia. Individuals and legal entities that are authorized to do business in Slovakia, and whose investment activities and projects meet the conditions of Act 561/2007 Coll. on Investment Aid and on Changes and Amendments to some Acts ( the Act on Investment Aid ) are eligible for investment aid. Under the Act, particularly the following areas should be supported: 1. industrial production; 2. centres for innovation and technology; 3. centres for strategic services; and 4. tourism 2 Incentives and EU Grants PricewaterhouseCoopers

3 Types of State Aid If an investor meets the conditions set out for state aid above, it can apply for one of the following types of state aid: 1. a subsidy for the acquisition of non-current tangible or intangible assets; 2. income tax relief; 3. a contribution for new jobs; and 4. a transfer of intangible assets or replacement of intangible assets at a price lower than the general value of the asset. 1. A subsidy for the acquisition of noncurrent assets Specifics: partial refund of eligible costs incurred on the acquisition of noncurrent tangible and intangible assets; granted based on a separate contract with the Slovak Ministry of Economy; and the subsidized asset must be retained by the investor for not less than five years from the termination of the investment project. 3. Contribution to new jobs Specifics: the maximum period of use is two years; a partial refund of employee salaries, including statutory contributions; each funded job must be filled and retained for five years; is granted for all investment projects implemented in all regions (valid from 1 April 2009 to 31 December 2010); and is granted based on a contract with the Slovak Centre of Labour, Social Affairs, and Family. 2. Income tax relief Specifics: the maximum period of use is five years; is granted for a proportional part of the tax base; is conditional on the amount of eligible costs and the taxpayer s equity; and the amount of the tax credit is limited by the absolute amount of state aid recognized for the given form. 4. A transfer of immovable assets, or the exchange or replacement of immovable assets at a price lower than the general value of the asset Specifics: the grantor of this type of investment aid can be a municipality, a higher territorial unit, or a founding organization, the Slovak Land Authority, the owner or administrator of real estate acting as a public administration body; a contract on the transfer of immovables, or a contract on the exchange/replacement of immovable assets, which must include provisions on establishing a lien for a period of five years from the date of the transfer. Eligible costs The eligible costs for an investment plan that is considered for the purpose of investment incentives include: a) the acquisition of non-current tangible assets such as land, buildings, an new machinery located in Slovakia that is acquired under market conditions from other than personally or economically related parties (from 1 April 2009 to 31 December 2009 assets can also be acquired from personally and economically related parties), and that will be used solely by the beneficiary in his business in accordance with the business plan, b) non-current intangible assets up to 50% of the non-current tangible assets that were acquired through the transfer of technology and resulting acquisition of patent rights, licences, know-how, or unpatented technical knowledge, provided that they were acquired under market conditions from other than personally and economically related parties, and that will be included in the beneficiary s assets and depreciated and used solely by it in its business pursuant to the investment plan over a period of not less than five years; and c) the amount of salaries before tax of employees hired for new jobs created in connection with the investment plan, including payments of health and social insurance, as well as contributions to old-age pension savings calculated for a two-year period. PricewaterhouseCoopers Incentives and EU Grants 3

4 Maximum Amount of State Aid - Overview Overall aid from all sources is limited by EU legislation and divided into the following categories: ŽILINA PREŠOV TRENČÍN KOŠICE BANSKÁ BYSTRICA TRNAVA BRATISLAVA NITRA Middle-sized companies Small companies 0% of eligible costs of the project + 0% + 0% 40% of eligible costs of the project + 10% + 20% 50% of eligible costs of the project + 10% + 20% 4 Incentives and EU Grants PricewaterhouseCoopers

5 1. Industrial Production Investment projects in industrial production that include machine, automotive, wood-processing, chemical, and pharmaceutical industries can be supported by investment aid, provided they meet the following conditions: a) the building of a new business, the expansion of an existing one, the diversification of production to new or additional products, or a radical change in the production programme of an existing business, or the purchase of a business, b) the acquisition of new production and technological equipment designated for production purposes, valued at no less than 40% of the total amount of acquired non-current tangible and intangible assets (60% will apply to the investment plans filed from 1 April 2009); c) the production, activities, processes, constructions, or production and technological equipment that meet the condition for the protection of the environment; Unemployment rate in the district BELOW or EQUAL to the average in Slovakia ABOVE the average in Slovakia (by less than 50%) At least 50% ABOVE the average in Slovakia Minimal amount of eligible investment costs (in millions EUR) until 31 March 2009 and from 1 January 2011 from 1 April 2009 to 31 December ,56 13,28 13,27 6,635 6,64 3,32 There are special restrictions on state aid in the steel industry and for synthetic fibre production. d) the achievement of not less than 80% of total revenues from business activities specified in the beneficiary s investment plan; and e) the acquisition of non-current tangible and intangible assets at the following amounts dependent on the unemployment rate in the district where the investment project should be implemented, in the year preceding that in which the application for the state aid was filed. In 2010 (based on the average unemployment rates in 2009), the required amount of eligible costs in individual districts is as follows: Čadca Námestovo Púchov Púchov Kysucké Nové Mesto ŽILINA Dolný Kubín Tvrdošín Stará Ľubovňa Kežmarok Sabinov Bardejov Svidník Stropkov Medzilaborce TRENČÍN Ilava Považská Bystrica Martin Turčianske Teplice Ružomberok Liptovský Mikuláš Poprad Spišská Nová Ves Levoča PREŠOV Vranov nad Topľou Humenné Snina Skalica Senica Nové Mesto Myjava nad Váhom Piešťany Bánovce nad Bebravou Partizánske Topoľčany Prievidza Žiar nad Hronom BANSKÁ BYSTRICA Detva Brezno Revúca Rožňava Gelnica KOŠICE Trebišov Michalovce Sobrance Malacky Pezinok TRNAVA Hlohovec NITRA Zlaté Moravce Žarnovica Zvolen Banská Štiavnica Krupina Poltár Lučenec Rimavská Sobota BRATISLAVA Senec Galanta Šaľa Levice Veľký Krtíš Nové Zámky Dunajská Streda Komárno PricewaterhouseCoopers Incentives and EU Grants 5

6 2. Technology Centres A technology centre is a place in which the beneficiary performs activities that result in an improvement to or change in the products, production processes and technology used in the production process, such as the improvement of products, research and development, innovative activities, creative centres. Conditions for granting investment incentives to the technology centres include: a) the construction of a new technology centre or expansion of an existing one; b) the acquisition of non-current tangible and intangible assets valued at no less than EUR 1,328 million (SKK 40 million), while at least 50% must be covered by the entity s equity or own sources if the entrepreneur is an individual; c) at least 60% of the total number of staff of a technology centre must have a university education. 3. Strategic Service Centres A strategic service centre is a place from which the beneficiary provides its services with a high added value in support of the employment of qualified experts in centres for the development of IT programmes, technical solution centres, centres for the repair of top technologies, customer support centres and centres of multinational firms Conditions for granting investment incentives to the strategic service centres include: a) the construction of a new strategic service centre or the expansion of an existing one; b) acquisition of non-current tangible and intangible assets valued at no less than EUR 1,162 million (SKK 35 million), while at least 50% must be covered by the entity s equity or own sources if an individual is concerned; c) at least 30% of the total number of staff must have a university education. 6 Incentives and EU Grants PricewaterhouseCoopers

7 4. Tourism In accordance with the Act on Investment Aid, comprehensive tourism centres can also be supported. These include centres that offer at least three tourismrelated services, such as accommodation, meals, and additional services skiing, swimming, sporting and relaxation, cultural and sight-seeing services in a single location. Conditions for the provision of investment incentives in the tourism industry include: a) the construction of a new comprehensive tourism centre or an expansion of an existing one by offering new services; b) the acquisition of new technologies designated for the provision of services, valued at no less than 20% of the total amount of acquired non-current tangible and intangible assets (40% will apply to the investment plans filed from 1 April 2009); c) the provision of services, activities, processes, constructions, or equipment that meet the environmental protection requirement pursuant to special regulations; d) the achievement of no less than 80% of total revenues from the activities specified in the investment plan; e) the acquisition of non-current tangible and intangible assets amounting to no less than the amounts specified in the following tables (subject to the average unemployment rate in the district in the year preceding that in which the application for the investment incentives was filed), of which at least 50% must be covered by equity if a legal entity, or the investor s own funds if an individual is concerned. Unemployment rate in the district BELOW or EQUAL to the average in Slovakia ABOVE the average in Slovakia (by less than 50%) At least 50% ABOVE the average in Slovakia Minimal amount of eligible investment costs (in millions EUR) until 31 March 2009 and from 1 January 2011 from 1 April 2009 to 31 December ,6 9,96 8,3 4,98 3,32 3,32 In 2010 (based on the average unemployment rates in 2009), the required amount of eligible costs in individual districts is as follows: Čadca Námestovo Púchov Púchov Kysucké Nové Mesto ŽILINA Dolný Kubín Tvrdošín Stará Ľubovňa Kežmarok Sabinov Bardejov Svidník Stropkov Medzilaborce TRENČÍN Ilava Považská Bystrica Martin Turčianske Teplice Ružomberok Liptovský Mikuláš Poprad Spišská Nová Ves Levoča PREŠOV Vranov nad Topľou Humenné Snina Skalica Senica Nové Mesto Myjava nad Váhom Piešťany Bánovce nad Bebravou Partizánske Topoľčany Prievidza Žiar nad Hronom BANSKÁ BYSTRICA Detva Brezno Revúca Rožňava Gelnica KOŠICE Trebišov Michalovce Sobrance Malacky Pezinok TRNAVA Hlohovec NITRA Zlaté Moravce Žarnovica Zvolen Banská Štiavnica Krupina Poltár Lučenec Rimavská Sobota BRATISLAVA Senec Galanta Šaľa Levice Veľký Krtíš Nové Zámky Dunajská Streda Komárno PricewaterhouseCoopers Incentives and EU Grants 7

8 Responsibilities of the Beneficiary Basic obligations of the beneficiary to whom the state aid was granted include, but are not limited to: The eligible costs for an investment project can be incurred only after preliminary written confirmation from the Slovak Ministry of Economy that the project meets the conditions. Otherwise, the entire project would be disqualified. Not less than 80% of revenues must be achieved from the business activities specified in the investment plan that is subject to approval by the relevant authorities; The beneficiary must implement the investment project not later than within three years after the issue of the decision on approval of the investment aid The production, activities, processes and technology must meet the Slovak and European environmental standards; Sustaining the investment and new jobs over a period of drawing the contribution for new jobs, but no less than five years; The new jobs should be created and filled within three years after the completion of the investment project; No less than 25% of the eligible costs should be financed from the investor s own funds or from borrowed funds other than state aid; Fulfilment of other conditions set out in the decision on approving the state aid to the beneficiary; Monitoring and reporting of the use of granted funds to the responsible authorities in a standard form and at specified dates. State Aid Approval Process Step 1: Filing an investment/business plan with the Slovak Ministry of Economy; Step 2: Professional review of the investment plan by the providers of the relevant type of investment aid, such as the Ministry of Economy, Ministry of Labour, Social Affairs and Family, and Ministry of Finance; Step 3: Issue of preliminary confirmation by the Slovak Ministry of Economy that the conditions of the investment plan have been met and presentation of a proposal for granting the investment aid, by the Ministry of Economy; Step 4: Filing an application for the investment aid based on the proposal from the Ministry of Economy; Step 5: Approval of the request by the Ministry of Economy and the Slovak Government; Step 6: For investment projects with eligible costs exceeding EUR 100 million, granting state aid is subject to notification by the European Commission; Step 7: Issue of the decision on approving the investment aid to the beneficiary; Step 8: Implementation agreements with the provider of direct form of aid; Step 9: Presenting monitoring reports and final investment report on terminating and withdring the investment aid by the beneficiary. Key Factors for Granting State Aid Amount of the investment Region where the project will be implemented Rate of unemployment in the region Number of directly and indirectly created jobs Intensity of state aid in the region Technological standard, innovation Amount of costs incurred on education Share of highly qualified staff Impact on the environment Quality of the investment plan and completeness of the application/request 8 Incentives and EU Grants PricewaterhouseCoopers

9 Research and Development Incentives Conditions for granting and using the incentives are stipulated in Act 185/2009 on Research and Development Incentives ( the Incentives Act ) Research and development incentives are part of the state aid programme designated for legal entities entrepreneurs, and are aimed at improving the quality of research and development activities. Under the Act, the following areas of research and development are supported: 1. fundamental research, applied research or experimental development; 2. feasibility studies of applied research and experimental research; 3. industrial ownership protection; and 4. the temporary lease of highly qualified research and development staff. Types of investment aid 1. Subsidies for research and development projects from the state budget Specifics: The subsidy is conditioned on creating a new workplace or upgrading the existing one from the applicants own sources, while the activities in that workplace will be focused on research and development. The newly established and/or upgraded workplace must perform its activities for a period of not less than five years after the end of the incentives period. There is a partial refund of eligible costs up to the maximum intensity of the state aid. The grantor is the Slovak Ministry of Education. Eligible costs 2. Income tax relief at the amount incurred on research and development within the project for which incentives were approved Specifics: The maximum period of drawing is three years. It is granted based on proportional part of the tax base (depending on the research and development costs covered by the beneficiary s own funds and on the total research and development costs). The amount of tax relief is limited by the absolute amount of aid recognized for the given type. The grantor is the relevant tax office. In general, the eligible costs of research and development projects that qualify for the incentives depend on the type of research and development project. The Act provides a specific definition of eligible costs for some research and development areas with regard to micro, small, and medium-sized entrepreneurs. Fundamental research, applied research or experimental development projects A) Direct costs expenses incurred for activities for which it can be proved that they directly relate to the project wage costs and personal costs of the project team members relating to their participation in the project, including statutory insurance; PricewaterhouseCoopers Incentives and EU Grants 9

10 costs of business trips up to the amount set out by the Act on Travel Allowances and costs incurred for participating in conferences or for arranging conferences, seminars and other business meetings relating to the project; overhead expenses (such as material, energy, water, sewerage and communications) relating directly to the project; costs of services directly relating to the project and provided by individuals (based on a contract for performing work) or by entrepreneurs (physical persons or legal entities); costs relating to disclosing the results of the project in Slovakia or other countries and costs of patent protection of the results of the project; and costs of procurement, borrowing, repairs, depreciation and enhancement of equipment used in the project. B) Indirect costs costs of activities relating to the project, however not directly assignable to the project activities: salary and other personal costs of service staff including costs of obligatory insurance, costs of minor consumer material, energy, water and sewerage and communications; and depreciation of beneficiary s and co-beneficiary s assets due to their use. Development of the project feasibility study salary costs and other personal costs of the project team relative to their participation in the project, including costs of obligatory insurance; overhead costs of energy, water, sewerage, and material used in preparing the study; and costs of business trips up to the amount set out by the Act on Travel Allowances, and costs for participating in conferences. Industrial property protection and temporary lease of highly qualified research and development staff for large enterprises personal costs (researchers, engineers and other support staff relative to their participation in the project); costs of tools and equipment, and/or depreciation in the extent and at the time of their use during the project for land, eligible costs include commercial transfer or capital expenses actually incurred; costs of contractual research, technical knowledge and patents purchased or licensed from suppliers at market prices, costs of advisory or similar services used solely for the research activity; and other direct overhead or operating costs (costs of material and supplies relating solely to research projects). Industrial property protection for micro, small, and medium-sized companies all costs incurred prior to being granted the right of industrial property protection in the first legal proceeding (including costs of preparing, filing and reviewing the application, etc.); costs of translations and similar costs for being granted or approved the right of industrial property protection in the following legal proceeding; costs of defence of legitimacy of the right of industrial property protection during the process of official review of the application and the potential appeal proceeding, even after the right of industrial property protection was granted. Temporary lease of highly qualified research and development staff for micro, small, and medium-sized companies all personal costs of leasing and employing highly qualified research and development staff, including costs of personnel agency services and contribution to mobility for temporarily leased staff. 10 Incentives and EU Grants PricewaterhouseCoopers

11 Nature of the project and maximum amount of support 1. Fundamental research project - is focused on experimental and theoretical work performed particularly for the purpose of gaining new knowledge with planned practical usage; and - the maximum time of the project is three years; 2. Experimental development project - aimed at gaining, combining, forming, and using existing technical and technological knowledge and skills for the purpose of developing plans and compositions, designs of new (or upgraded) products, processes or services; and - the maximum period of a project is three years; Maximum amount of state aid / Minimum amount of eligible costs Maximum amount of state aid / Minimum amount of eligible costs Size of the Percentage of eligible costs / maximum amount of state aid in millions of Euros for a /project Minimum amount of eligible costs in millions of Euros Size of the Percentage of eligible costs / maximum amount of state aid in millions of Euros for a /project Minimum amount of eligible costs in millions of Euros Micro and small 100% / Micro and small 45% */ Medium-sized 100% / Medium-sized 35% */ Large 100% / Large 25% */ * The above intensity can be increased by 15 percentage points (however, at no more than 80% of eligible costs, provided that the project includes effective cooperation of two independent entities.) 3. Applied research project - is focused on gaining new knowledge and skills for the development of new products, procedures or services; - the maximum period of a project is three years; 4. Feasibility studies - focused on verifying the feasibility and applicability of the applied research projects and experimental research projects; Size of the Maximum amount of state aid / Minimum amount of eligible costs Percentage of eligible costs / maximum amount of state aid in millions of Euros for a /project Minimum amount of eligible costs in millions of Euros Size of the Maximum amount of the state aid percentage of eligible costs / maximum amount of state aid in millions or Euros for a /project Preliminary studies for the activities of industrial research Preliminary studies for the activities of experimental development Micro and small 70% */ Micro and small 75% / 7.5* 50% / 7.5* Medium-sized 60% */ Medium-sized 75% / 7.5* 50% / 7.5* Large 50% */ *The above intensity can be increased by 15 percentage points (however, at no more than 80% of eligible costs, provided that the project includes effective cooperation of two independent entities). Large 65% / 7.5* 40% / 7.5* *The maximum amount of state aid can be higher, provided that the feasibility study is focused predominantly on industrial and fundamental research. PricewaterhouseCoopers Incentives and EU Grants 11

12 5. Protection of intellectual and industrial property - focused on ensuring protection of the results achieved in applied or experimental research projects locally or abroad, in the form of patent or other protection of industrial property. - The maximum aid (as a percentage of eligible costs) does not exceed the amount for relevant research and development activities that were the basis for the original industrial property. 6. Staffing of research and development function - The temporary lease of highly qualified staff from other research and development sectors (universities, Slovak Academy of Sciences or a large ) for micro or medium-sized companies. - For small, medium-sized, and large companies, the maximum amount of aid (as a percentage of eligible costs) will not exceed 50% for a period of no more than three years for a and leased expert. Responsibilities of the Beneficiary The responsibilities of the beneficiary the entity that has been granted the incentives include particularly: Approval process of an application for research and development investment incentives Step 1: Filing the application for incentives (project) with the Slovak Ministry of Education prior to commencement of work on the project; Step 2: The Slovak Ministry of Education will provide for a professional evaluation of the project (two standpoints) within three months after accepting the application for incentives; Step 3: The Slovak Ministry of Education issues a decision on granting the incentives to the project, if the amount of incentives does not exceed EUR 2 million; Step 4: If the amount of the incentives exceeds EUR 2 million, the Slovak government must approve the incentives; Step 5: For projects exceeding the notification limit, granting the incentives is subject to approval by the European Commission; Step 6: Implementation agreements for cash subsidies with the Slovak Ministry of Economy. implementing the results of fundamental research, experimental research and applied research in Slovakia, not later than within five years after the end of receiving the incentives for the project and ensuring the provision of information about the economic and social benefits of the implementation, during the period of five years after receiving the incentives; implementing the results of the project feasibility study not later than within three years after the end of receiving the incentives; maintaining the new established job for a temporarily leased highly qualified individual for the research and development function over a period of not less than five years after the end of receiving the incentives; ensuring that the aid cannot be drawn over the limit of approved intensity; and ensuring that, in the instance of temporarily assigned highly qualified research and development staff for a micro, small or medium-sized, these staff members must have at least two years experience as employees of a legal entity involved in research and development or by a large entrepreneur in the area of research and development. 12 Incentives and EU Grants PricewaterhouseCoopers

13 The European Union Funds In addition to state aid that is provided from the state budget, your investment can also be supported from EU Funds from 2007 to The following areas have priority: 1. Knowledge economy 2. Infrastructure and regional availability 3. Human resources 2007 to 2013 Operational Programmes The strategy, priorities and objectives of the support financed from the EU funds will be implemented through 11 operational programmes. 1. Regional operation programme 2. Environment 3. Transport 4. IT implementation 5. Research and development 6. Competitiveness and economic growth 7. Education 8. Employment and social inclusion 9. Health care 10. Technical assistance 11. Region of Bratislava At present, the following are the most significant for supporting the investments: Operational programme Environment The environmental programme is focused on improving the environment and reasonable use of resources through improvement of environmental infrastructure in Slovakia in accordance with the EU and local regulations. This operational programme focuses on more challenging and demanding activities in the area of: Operational programme Research and Development The purpose of this programme is upgrading and improving effectiveness of the system for the support of research and development, and improving the infrastructure of universities so that they are able to share in: - Improving competitiveness of the economy - Reducing regional disparities - Establishment of new innovative (high-tech) small and middle-size enterprises - Creation of new jobs - Improvement of conditions for educational processes at universities Operational programme Competitiveness and economic growth Competitiveness and economic growth is designated for ensuring sustainable economic growth and employment. Activities are focused particularly on: - Support of innovative processes - Transfer of new environmental technologies and sophisticated processes - Development of common services for entrepreneurs The programme supports cooperation between businesses and research and development institutions, universities and educational facilities aimed at building infrastructure for research, development and innovation in the form of incubators, clusters, centres for innovation, competence centres for applied research and development, scientific and technological industrial parks, or regional innovation portals. The following activities are supported in the field of energy: - Those aimed at increasing energy effectiveness - Those for reducing energy consumption - Those aimed at using renewable energy sources in industrial sector and related services In tourism, support is aimed at increasing the variety of activities and quality of tourism and the spa business in Slovakia, as well as at projects offering services that can be used all year round (such as the use of mineral and geothermal springs for the development of summer and winter tourism with comprehensive services for clients). - Water management - Waste management - Air pollution - Nature conservation PricewaterhouseCoopers Incentives and EU Grants 13

14 What we can offer We provide assistance to small, mid-sized, and large multinational companies, public administration, and bilateral and multilateral agencies, such as USAID, European Union, EBRD, and the World Bank. We offer a wide range of services to companies that invest in our region, including: benchmarking studies and analysis of your investment opportunities; regular monitoring of your opportunities for receiving support from EU Funds and the state budget; identification and review of available types of incentives for your planned investment; investment and financial structuring, and support in negotiations with governmental authorities; assistance in drafting an investment plan and applying for a grant or other type of state aid; assistance drafting monitoring reports and final evaluation reports, including auditing eligible expenses; reviews and financial due diligence; and audit, accounting and internal controls. 14 Incentives and EU Grants PricewaterhouseCoopers

15 Maximize potential returns on investment throughout the project life cycle Planning & Decision Making Industry analysis Historic and forecasted market development International cost benchmarking on raw materials, energy and labour Evaluation of regional investment grants and benefits Preparing a business plan for the project Site selection Real estate acquisition Project financing structures and fund raising Advice on various accounting and tax issues Start-up & Implementation Establishment in Slovakia Buy-side due diligence Cost-structure reviews and optimization Management of tax accounting and legal aspects of crossborder projects Salary surveys Assistance with applications for grants and state aid Business Improvement Human resource and process design management Dealer network restructuring Procurement and supply chains Tax optimization of cross-border transactions Working capital reviews Advice on cost-fee ratio issues increasing profitability Expansion & Growth Merger and acquisition advisory Valuation of the potential target Due diligence Human resource function effectiveness Review of new or additional available grants and EU funds Outsourcing Internal audit outsourcing Administration and full project management of awarded grants Reporting responsibilities to national or EU authorities Professional accounting, payroll and tax compliance services Relocation Cost-benefit analysis Exit strategy for optimizing the commercial and tax position Revenue assurance Business risk management system The PwC Investment & State Aid team is a one-stop-shop for clients who are considering investing in Slovakia. Contact us at: investment@sk.pwc.com or on PricewaterhouseCoopers Incentives and EU Grants 15

16 Contacts and Offices Bratislava Nám 1.mája Bratislava reception tel: +421 (2) fax: +421 (2) Todd Bradshaw Partner Tel.: Mobil: Christiana Serugová Partner christiana.serugova@sk.pwc.com Tel.: Mobil: Lenka Bartoňová Manager lenka.bartonova@sk.pwc.com Tel.: Mobil: Alexandra Jašicová Manager alexandra.jasicova@sk.pwc.com Tel.: Mobil: Zuzana Šátková Senior consultant zuzana.satkova@sk.pwc.com Tel.: Mobil: Košice Hlavná Košice reception tel: +421 (0) fax: +421 (0) Zuzana Amrichová Senior consultant zuzana.amrichova@sk.pwc.com Tel.: Mobil: Daniel Hanko Manager daniel.hanko@sk.pwc.com Tel.: Mobil: PricewaterhouseCoopers. All rights reserved. PricewaterhouseCoopers refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.