Introducing the Czech Republic
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1 ITS Seminar: Czech Tolling Experience Introducing the Czech Republic Ivana Klimova Economy and Trade Secretary Embassy of the Czech Republic to the Netherlands
2 Introducing the Czech Republic: content Basic facts about CZ History of CZ economic transformation Current economic figures & outlook Role of FDI by sector, by country, in electronics, in R&D Tax reforms 2008 Links sources of business-related information about the Czech Republic
3 Czech Republic the basic facts Currently at about 25,50 CZK/EUR Source: OECD
4 CZ - golden medal for transformation* Milestones after 1989 Velvet Revolution : 2004 EU and 1995 OECD membership; Historic path - Czechoslovakia before WW2 among world s first 20 industrial nations; Czech lands were one of the economic motors of Austro-Hungarian empire during the industial revolution. * CZ status of political and economic transformation rated No.1 out of 125 according to Bertelsmann Transformation Index (BTI) 2008.
5 Current Economic Figures (Source: CZSO) GDP CPI Inflation rate Industrial output Avg gross wages Import and Export Unemployment 4Q 2007 Feb 2008 Feb 2008 Jan Q 2007 Jan 2008 Feb ,6 % Year-on Year + 7,5 % Year-on Year + 3,9 % Year-on Year + 9,3 % Year-on Year + 6,8 % nominal + 1,9 % real +10,3 and + 11,0% 5,9 % rate
6 CZ - current economic outlook (OECD) Landing after a 5 year long period of a very strong and stable growth
7 Cumulative FDI inflow by sector ; source: CNB CZ is the leading recipient of FDI per capita in CEE region Electricity, gas and water supply 5 % Other 4 % Total EUR: billion Real estate and business activities 13 % Manufacturing 29 % Trade, hotels and restaurants 12 % Transport, storage and communications 18 % Financial intermediation 19 %
8 Cumulative FDI inflow by country ; source: CNB Japan 1 % Sweden 1 % Total EUR: billion Other 23% United Kingdom 4 % Belgium 4 % Switzerland 4 % United States 6 % Germany 25 % France 7 % Austria 10 % Netherlands 15 %
9 Electronics - one of the key sectors
10 Investment in R&D; tech infrastructure CZ is the leading recipient of FDI per capita in CEE region Establishing R&D centres: with or without manufacturing presence. Growing confidence in: Czech R&D and business climate; legal system and intellectual property system. Technology infrastructure: Technical universities (8)»»»»» Public research institutes (Academy of Sciences); Science and technology parks; Business incubators; Private technology centres; Cluster initiatives and Technology platforms.
11 Investment incentives Based on Act No. 72/2000 Coll., as amended, valid as of July 2007 For more info pls contact: Possible incentives upon meeting eligibility criteria; corporate tax relief Tax relief for 5 years; full tax relief for 5 years for newly established companies Job-creation grants; 50,000 CZK per job in high unemployment regions Training and re-training; 35% of costs in high unemployment regions For manufacturing industry; technology centres and business support services
12 Reformsto furtherimprovethe business climate: Taxation (2008) Corporate tax 21% (2008) 20% and 19% in 2009 and 2010 respectively Personal income tax 15% (2008), 12.5% (2009) Withholding tax 0-25% Value-added tax 19% or 9% Real estate tax rates vary by location Road tax Excisetax vignette; toll system - for trucks on gasoline, alcohol and tobacco only
13 Useful links Official website Czech Statistical Office Czech National Bank CzechInvest (Business and Investment Promotion Agency) English language business news:
14 Thank you! Contact details: Embassy of the Czech Republic Economy and Trade Section Paleisstraat JA Den Haag commerce_hague@mzv.cz
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