Law for financial support of investments

What is the law on financial support and what is its goal?

The financial support law regulates the types, height, conditions, manner and procedure for granting financial support to investments of business entities that will invest in RSM.

The aim of this law is to stimulate economic growth and development in the country.

SUBJECTS THAT MAY BE BENEVIOURS OF THE FINANCIAL SUPPORT LAW:

Subjects who started or planned a productive initial investment.
Total operating revenues in the last year will be higher than the average in the previous 3 years.
The number of employees in the last year is not less than 5% of the average in the previous 3 years.
Financial support beneficiaries can be business entities from the leather processing and textile industry, as well as business entities with dedicated production (armaments and military equipment).

MEASURE NO.1 FINANCIAL SUPPORT FOR NEW EMPLOYMENT

Intended for RSM nationals
A monthly net salary at least 50% higher than the minimum net salary should be paid
20% of the monthly net salary paid. The maximum annual amount for one employment is 4,400 euros.

At least 50% of newly employed persons during the year for financial support should meet at least one of the following conditions:

at least three months before employment, they did not have a based employment relationship and at least 12 months before employment were not employed by a financial support user,
first time to establish a working relationship,
employment relationship to stop opening bankruptcy or liquidation,
shortly before employment was employed by a state institution.

MEASURE NO.2 FINANCIAL SUPPORT FOR ESTABLISHING ORGANIZATIONAL FORMS FOR TECHNOLOGICAL DEVELOPMENT AND RESEARCH

It is awarded for the establishment of departments, centres or other forms, in which research and development projects are implemented or highly qualified staff are engaged in order to acquire new knowledge and skills for the development of new products
50% of total justified industrial research costs

It is paid for a period not more than 5 years
Justified costs:
Personal expenses
Tool and equipment costs
Costs for buildings and land
Costs for contractual research, technical knowledge and consultancy services.

MEASURE NO.3 FINANCIAL SUPPORT FOR GROWTH OF CAPITAL INVESTMENTS AND REVENUES

is awarded for investment investments for the procurement of new machinery and equipment and/or for investments in facilities and land necessary for the activity of the business entity
10% return on investment, but no more than EUR 1,000,000
maximum support period: 5 years

MEASURE NO.4 FINANCIAL SUPPORT TO INCREASE MARKET COMPETITIVENESS

It is awarded to business entities that have increased their competitiveness in the market:

They are up to 10% of the justified investment costs
maximum 5,000,000 euros over a period of 5 years (1,000,000 euros per year)
increase in operating income by at least 5% more than the average in the previous 3 years

OTHER TYPES OF FINANCIAL SUPPORT ARE:

Financial support for taking business entities into difficulty;
Financial support for investment projects of significant economic interest to rsm;
Financial support for subjects founded by RSM citizens with permanent/temporary stay outside rsm.

PROCEDURES FOR GRANTING FINANCIAL SUPPORT:

For investment projects in TIRZ, a request is submitted to DTIZ
For investment projects outside tirz, a request is submitted to the Foreign Investment Agency

To grant financial support, the business entity shall submit a request for financial support to the competent authorities by 31 May of the current year at the latest.

The request is submitted: Letter of Intent, Business Plan for Investment Project and Financial Statements for the last three years or for a shorter period depending on the date on which the subject was founded.