Directive to Provide for the Application of Tax Incentives for Expansion/Upgrading of Investment No. 941/2023.

The Directive provides for the application of tax incentives for expansion/upgrading of investment. An investor engaged in expanding the production and service rendering capacity of the existing enterprise and an investor who increases in variety or volume by at least 100% by introducing new production or service rendering line of an existing enterprise shall be beneficiary of an income tax exemption. The Directive also establishes conditions for being beneficiary: a) submit evidence showing that the enterprise has been engaged in production or service rendering activities for a certain period of time; b) submit financial statement certified by an external auditor showing the capital invested to modernize the production process, to introduce new technology or to increase the production or service type; c) submit financial statement certified by an external auditor showing the volume of production or service rendered within a year after the completion of the upgrading; d) if it has been granted tax exemption that it has fulfilled privilege; submit evidence showing its obligations exemption period in accordance to tax laws. Section 3 contains criteria for exemption from customs duties. Also liability is disciplined.