The Slovak Economy Ministry and Finance Ministry have finally agreed on providing investment incentives to companies Mondi SCP and Samsung. Finance Minister Peter Kažimír said last week he would try to delay these investment incentives until later, as next year he wants to focus on the consolidation of public finances.

The Economy Ministry has now submitted a new text on these incentives for investors. "This represents a significantly reduced volume of tax breaks next year for Samsung. Mondi SCP will not get any tax breaks the following year," Stanislav Jurikovič, spokesman of the Economy Ministry told the SITA newswire after the negotiations. Based on the new proposal, next year Samsung would draw incentives in the form of tax breaks of only €980,000 instead of requested €2.5 million. The next year, this would be €8.92 million and in 2015, €9.9 million. In total, Samsung should receive incentives worth €19.8 million. In return, the company pledges to invest €70 million to modernise its plant in Galanta and preserve 760 jobs for at least six years.

Mondi SCP will start drawing incentives in the form of income tax relief in 2014, which according to the original plans it should have received as of next year, when it was supposed to have used a tax credit of €10.5 million. In the first year, the company will be able to apply for tax relief worth €6 million. In total, this company should receive investment aid worth €25.4 million. The company plans to invest €95 million over four years to expand its factory and preserve 766 jobs.

The cabinet should decide on Wednesday on incentives for seven other companies: Magneti Marelli, Bekaert Slovakia, Delta Electronics, Continental Automotive Systems Slovakia, Muehlbauer, and Ekoltech Fagor Ederlan. Their investment aid in the form of income tax relief is nearly €56 million. "These investors should benefit from the incentives after 2014," said Jurikovič.

(Source: SITA)
Compiled by Zuzana Vilikovská from press reports
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