What does Regulation aimed at attracting direct investment bring?

Source: Beta Sunday, 25.05.2014. 15:12
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The Serbian government has passed a regulation governing the allotment of incentives to local and foreign investors for investment in the production sector, exportable services and strategic tourism projects.

According to the text of the regulation aimed at attracting direct investment, which is published on the website of the Government (www.srbija.gov.rs), large companies can get an incentive of up to 50 percent of the justified costs of their investment project, medium-sized businesses can get up to 60 percent, while small enterprises can have up to 70 percent of the costs covered by the incentive.

These incentives are granted for investments of up to 50 million euro, while the investments exceeding that amount are eligible for smaller incentives.

For example, incentives for an investment of over EUR 100 million can go up to 17 percent of the justified costs.

The regulation stipulates that apart from private companies, the enterprises owned by the state, province or the local self-government can also get investment incentives if they previously obtain the consent from the Government.

The users of such incentives are to contribute minimum 25 percent of the justified costs from their own resources or some other resources that have nothing to do with state aid.

Incentives for attracting direct investment cannot be used to finance investment projects in the field of primary agricultural production, hospitality sector, lottery games, trade, production of synthetic fibers, coal and steel, tobacco and tobacco products, arms and ammunition.
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