Croatian parliament adopts investment stimulation law.

By bne IntelliNews September 24, 2012
The Croatian parliament unanimously adopted last week an investment stimulation law, aiming to improve business climate in the country, news agency HINA informed. The law envisages incentives for manufacturing, tourism, development projects, business support activities and high added value services. Micro-businesses with investment projects of above EUR 50,000 will have an opportunity to have 50% reduction of profit tax over the next five years in case of opening at least three new jobs. Meanwhile, for investment projects from EUR 1mn to EUR 3mn, companies will have a 75% cut in profit tax over the next ten years if they hire at least ten workers. Companies, which invest more than EUR 3mn, will be exempt from profit tax if they hire at least 15 workers. The law also envisages an increase in incentives for job creation in areas of technological and innovative infrastructure from 25% to 100%. Investors could take grants to cover their expenses for opening new jobs - up to EUR 3,000 per job in regions where the unemployment rate is below 10%, up to EUR 6,000 per working place in counties where the unemployment rate is between 10% and 20% and EUR 9,000 per working place in counties, where the unemployment rate is between 20% and 30%.

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