ZAGREB, Aug 31 (Hina) - A new bill on stimulating investments, which the government has forwarded to the parliament, should stimulate Croatia's economic growth and development, as well as its joining international trade. The goal of
the law is to increase exports and strengthen the competitiveness of Croatia's economy.
ZAGREB, Aug 31 (Hina) - A new bill on stimulating investments, which
the government has forwarded to the parliament, should stimulate
Croatia's economic growth and development, as well as its joining
international trade. The goal of the law is to increase exports and
strengthen the competitiveness of Croatia's economy. #L#
According to the bill, stimulating measures would relate to
investments into fixed assets worth over two million kuna. The
measures envisage a decrease of the tax base for profit tax,
exemption from customs tariffs, special stimulating measures in
exceptionally justified cases, as well as the lease of state-owned
real-estate and other infrastructure.
The tax base for profit worth at least two to four million kuna will
be decreased by the amount of the money invested for a three-year
period, starting with the end of the first year of investment, under
the condition that seven new workers are employed in this period.
The tax base for profit of 15 to 30 million kuna will be decreased by
the amount of money invested through a period of 12 years, under the
condition that 20 new workers are employed in this period.
If profit exceeds 50 million kuna, the tax base will be decreased by
the amount of money invested through a period of 15 years starting
with the end of the first investment year, on condition that 60 new
people are employed in this period.
The bill also proposes exemption from customs tariffs for the
import of equipment or machinery which is considered part of fixed
assets into which investments are made.
The essential goal of this bill is to spur Croatian entrepreneurs to
invest more and create a competitive atmosphere for foreign
investors.
The government has established an agency for promoting exports and
investments, which should start functioning by year's end.
The agency should, among other things, educate exporters about
export conditions, inform them of new business methods in
international trade, provide support by co-financing particular
projects and programmes, as well as to help exporters to
participate in international fairs.
Funds for financing the agency will be earmarked from the
government budget and through the agency's fees.
The agency's goal is to become a means by which the Croatian
government, as its founder, will realise programmes aimed at
increasing exports and investments, thus contributing to the
country's economic growth, the creation of a positive trade balance
and new jobs.
(hina) lml sb