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Amendments To The Cabinet Of Ministers On 24 January 2012 The Regulation No 78 "eligible Investment Project Approval And Implementation Modalities"

Original Language Title: Grozījumi Ministru kabineta 2012.gada 24.janvāra noteikumos Nr.78 "Atbalstāmo investīciju projekta apstiprināšanas un īstenošanas kārtība"

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Cabinet of Ministers Regulations No. 1519 Riga 2013 (17 December. No 67 65) amendments to the Cabinet of Ministers on 24 January 2012 No 78 "in the terms of investment project supported the approval and implementation modalities," Issued in accordance with the law "on enterprise income tax" paragraph 10 of article 27 1. make Cabinet 2012 January 24 Regulation No 78 "eligible investment project approval and implementation modalities" (Latvian journal, no. 20, 2012) follows: 1. replace paragraph 17, the words "the numbers and the 2013 October 1" with the figures and word "31 March 2014."; 1.2. deleting the introductory part of point 19, paragraph 20 of the introductory paragraph and in paragraph 21, the words "equivalent in dollars"; 1.3. to supplement the provisions of this paragraph 32.6: "32.6. If the Commission does not have enough information to evaluate the project according to the rules referred to in annex 3, administrative and quality criteria, the Commission may submit additional information about the project."; 1.4. in paragraph 37 deleted words "equivalent in dollars"; 1.5. Replace annex 1 the term "LVL" with the word "Euro"; 1.6. Replace annex 1 to 2.7 in the number "35" with the number "50"; 1.7. put 3 of annex 1 of the following: "3.-section application acknowledgement I, the applicant's project (the project name of the applicant) Officer (name), (position) to certify that on the day of submission of the project (dd./mm./gggg.)
3.1. the project applicant is registered as a taxable person in Latvia, it is not a judgement handed down by the insolvency proceedings or a court judgment is not the legal protection process, or by a court decision is not implemented in the out-of-court redress process is not initiated bankruptcy proceedings, is not suitable for rehabilitation or composition or its economic activity is not terminated; 3.2. the share capital of the applicant is not the project dropped more than half, and more than a quarter of the share capital has been reduced in the last 12 months prior to the submission of the project to the Ministry of the economy. This paragraph does not apply to commercial companies that meet the Commission's august 6, 2008, Regulation (EC) No 800/2008, which recognize certain categories of aid compatible with the common market in application of articles 87 and 88. (General block exemption regulation) (text with EEA relevance), contained in annex 1 definition of small and medium-sized enterprises, if they register for less than three years; 3.3. the applicant for the project in accordance with the last two years, the report on the annual accounts and the last operational review available to the application of the draft day is observed in the ailing economic analyst signs-damage increase, the reduction in turnover, declining cash flow, debt, interest payment, stock inventories, low liquidity ratio, the reduction in value of assets or equalisation with zero. This paragraph does not apply to merchants that meet the Commission's august 6, 2008, Regulation (EC) No 800/2008, which recognize certain categories of aid compatible with the common market in application of articles 87 and 88. (General block exemption regulation) (text with EEA relevance), contained in annex 1 definition of small and medium-sized enterprises; 3.4. the project for the applicant on the last day of the tax period, the tax debt in total not exceeding 150 euro, except tax payments, terms of payment of which has been extended in accordance with the law on taxes and duties "; 3.5. to project the applicant is not the subject of a recovery order by the European Commission decision on State aid in the European Union or are held to be illegal and incompatible with the common market; 3.6. the project specified in the application for the initial long-term investments have been made and will be made before the Cabinet's decision to support the project; 3.7. the project application and its annexes include information is valid and true, and project the initial long-term investments will be made in accordance with the project schedule; 3.8. all economic Ministry projects submitted in the application instance contains the identical information. Certify that the investment in the project will be carried out in the unused (new) fixed assets (technological equipment of the new production, telecommunications and software installations, pipelines, communication and power lines (structure classification code 22) and their ancillary equipment, which ensures full production or service delivery cycle of technological operations), as well as investments in buildings and structures that are in accordance with the laws and regulations that govern the classification of buildings, classified as traffic and communication buildings (structure classification code 124) , industrial manufacturing and warehouse buildings (structure classification code 125) and transport structures (structure classification code 21). Certify that the project initial long-term investment project will be used by the applicant for carrying out the business of the law "on enterprise income tax" 17.2 eighth article listed in priority eligible sectors, while executing the law "on enterprise income tax" in article 17.2 of the fourth part of the type referred to in paragraph 4. Certify that the application meets the copies in my possession of the original documents and copies of the application and the project electronic version matches the original proposal submitted.
The responsible full name position date (dd./mm./gggg.)
Place signature note. Document properties "date" and "signature" does not fill in, if an electronic document is drawn up according to the law on electronic document design.
Project applicant (name) (signature) (date) "1.8. Replace annex 2, the term" LVL "with the word" Euro "; 1.9. Annex 3 to express the following: "3. the Cabinet of Ministers on 24 January 2012 the Regulation No 78 of eligible investment projects evaluation criteria 1. eligibility criteria No. PO box Criteria ranking system notes * Yes/No 1.1. The project applicant is a company registered in Latvia or foreign company registered in Latvia as a tax payer N 1.2. Investment in the project will be carried out in the unused (new) fixed assets (technological equipment of the new production, telecommunications and software installations, pipelines, communication and power lines (structure classification code 22) and their ancillary equipment, which ensures full production or service delivery cycle of technological operations), as well as investments in buildings and structures that are in accordance with the laws and regulations that govern the classification of buildings, classified as traffic and communication buildings (structure classification code 124) , industrial manufacturing and warehouse buildings (structure classification code 125) and transport structures (structure classification code 21) N 1.3. The project will take the original long-term investment, with a total amount of more than eur 10 million N 1.4. Investments in buildings and structures shall not exceed 40 per cent of the total original amount N long-term investments 1.5. The total initial amount of long-term investments will be invested within five years from the date on which the Cabinet of Ministers has adopted a decision to support the project, but no later than 30 June 2019 N 1.6. The original long-term investment will ensure new activities or upgrading existing operations or expansion, which includes new products, operational change, moving from one type of product production to another or from one type to another, or to provide an overall process significantly SHIFT N 1.7. Real estate, which will be used in the initial long-term investments, are the property of the applicant or of the project the project applicant has long-term lease rights (at least another 13 years after project start-up), attaching to the land registry. If real property is leased from the State or municipality, the project applicant has long-term lease rights for at least another 12 years after project startup N 1.8. The project applicant is not handed down a judgment in the proceedings or a court judgment is not the legal protection process, or by a court decision is not implemented in the out-of-court redress process is not initiated bankruptcy proceedings, is not suitable for rehabilitation or composition or its economic activity is not terminated N 1.9. The principal applicant of the project has not dropped more than half, and more than a quarter of the reduction of the issued share capital is reduced in the last 12 months prior to the submission of the project to the Ministry of the economy. This condition does not apply to commercial companies that meet the Commission's august 6, 2008, Regulation (EC) No 800/2008, to admit certain categories of aid compatible with the common market in application of articles 87 and 88. (General block exemption regulation) (text with EEA relevance), contained in annex 1 definition of small and medium-sized enterprises, if they register for less than three years ago N 1.10. The applicant, in accordance with the project over the past two years, the report on the annual accounts and the last operational review available to the application of the draft day is observed in the ailing economic analyst signs-damage increase, the reduction in turnover, declining cash flow, debt, interest payment, stock inventories, low liquidity ratio, the reduction in value of assets or equalisation with zero. This paragraph does not apply to merchants that meet the Commission's august 6, 2008, Regulation (EC) No 800/2008, which recognize certain categories of aid compatible with the common market in application of articles 87 and 88. (General block exemption regulation) (text with EEA relevance), contained in annex 1 definition of small and medium-sized enterprises N 1.11. Applicant of the project on the last day of the tax period, the tax debt in total not exceeding 150 euro, except tax payments, terms of payment of which has been extended in accordance with the law on taxes and duties "N 1.12. To the project the applicant is not the subject of a recovery order by the European Commission decision on State aid in the European Union or are held to be illegal and incompatible with the common market N 1.13. The project initial long-term investments will be made in priority eligible sectors mentioned in the law "on enterprise income tax" in the eighth paragraph of article 17.2 N 1.14. The project will be launched before the Cabinet's decision takes effect, N 2. Administrative criteria No. PO box Criteria ranking system notes * Yes/No 2.1. The application is drawn up according to the project application form is accompanied by all the documents referred to in these provisions, and they are designed according to the laws of the Republic of Latvia to the requirements document in the field of developing and designing P 2.2. The project's original application, the attached documents and documents that have derivatives prepared, subject to the laws and regulations in the development and presentation of a document is the document legal force P 2.3. Project application form is fully filled P 2.4. Where the application is filed on paper, the original application is a project with numbered pages P 2.5. The project is not specified in the application for amendment, deletion, aizkrāsojum, deletion and addition of 1.6 P. In the currency used is the euro P 2.7. The tender is submitted to the project application deadlines N 2.8. The application is filled in Latvian language into P 2.9. Where the application is filed on paper, the project application is submitted in two copies (original and copy) P 3. Quality criteria No. PO box Criteria scoring system notes, points 3.1. The planned initial investment amount of long-term maximum number-20 3.1.1. the original long-term investment more than 50 million. 3.1.2 the Euro 20. the original long-term investments more than 35 million. the euro but not in excess of 50 million. Euro 15 3.1.3. the original long-term investments more than 20 million. the euro but not in excess of 35 million. 3.1.4 the euro 10. the original long-term investment more than 10 million. the euro but not in excess of 20 million. Euro 5 3.2. The planned project the average value added growth in the next five tax periods after the implementation of the project. Value added is calculated using the following formula: (a projected gross profit + employees planned salary + depreciation allowance)/the planned number of employees – 20 maximum number 3.2.1. the average increase in the value added per worker more than 20% in relation to the year in which launched the project 20 3.2.2. the average increase in the value added per worker more than 10% but not more than 20% in relation to the year in which launched the project 15 3.2.3. the average increase in the value added per worker more than 5% but no more than 10% in relation to the year, which started the project 10 3.2.4. the average increase in the value added per worker does not exceed 5% in relation to the year in which launched the project 5 3.2.5. the next five tax periods after the project implementation is not increases in value added per employee in relation to the year in which launched the project 0 3.3. Place of implementation of the project and its impact on regional development of maximum 15 3.3.1. the project site is located in the special assisted areas under the regional development law. On the place of implementation of the project shall be deemed to be the place where the applicant performs the initial draft long-term investments 15 3.3.2. the project site is located outside the special assisted areas and outside Riga planning region under the regional development law 10 3.3.3. the project site is located in Riga planning region, but outside the special assisted areas under the regional development Act 5 section 3.3.4. the project site is located in Riga 0 3.4. The planned project implementation impacts on the number of jobs the maximum 15 3.4.1. will be created more than 150 new jobs in 15 3.4.2. will be created from 81 up to 150 new jobs 13 3.4.3. will be created from 51 to 80 new jobs 10 3.4.4. will be created from 31 to 50 new jobs 7 3.4.5. will be created from 1 up to 30 new jobs 5 3.4.6. the number of jobs will not change 3 3.4.7. the number of jobs fall 0 3.5. The average gross salary (for the last closed financial year) against the company operating the industry average (is applied to the data for the last year available) maximum 5 3.5.1. the average gross wage level exceeds 120% of the company's core business sectors average 5 3.5.2. the average gross wage level exceeds 100% but does not exceed 120% of the company's core business sectors average 3 3.5.3. the average gross wage does not exceed 100% of the company's core business sectors average 0 3.6. The estimated tax payable (INCOME TAX and social security) the maximum 5 3.6.1. estimated tax payments increase the next five tax periods after the initial long-term investments of more than 20% compared with the year in which launched the project 5 3.6.2. estimated tax payments increase the next five tax periods after the initial long term investment is up to 20% compared with the year in which launched the project 3 3.6.3. the expected tax cuts during the next five tax periods after the initial long-term investments, compared with the year in which launched the project 0 3.7. The industry, which will be implemented in the project are high or medium-high technology (NACE Rev. 2). the maximum number of 10 3.7.1. new product or technology development is carried out in one of the following high technology sectors: production-pharmaceutical products and pharmaceutical preparations (C21), manufacture of computer, electronic and optical equipment manufacturing (C26), aircraft, space machine and apparatus manufacturing (30.3 C) services-telecommunications (J61), computer programming, consultancy and related activities (J62), with the exception of computer usage consulting (J 62.02) 10 3.7.2. new product or technology development is carried out in one of the following medium-high technology sectors: production-chemicals and chemical products (C20), except for the production of synthetic fibres (20.6 C), the production of weapons and ammunition (25.4 C), electrical equipment (C27), equipment not elsewhere qualified, mechanisms and working machinery production (C28), cars, trailers and semi-trailers (C29), other transport equipment (C30), except for the vessels and floating plant building (C 30.11) and aircraft , apparatus and equipment space industry (30.3 C) 5   3.7.3. the new product or technology development will be carried out in sectors other than those referred to in paragraph 3.7.1 and 3.7.2.0 3.8. The planned project applicant's average net sales growth in the next five tax periods after the implementation of the project the maximum to 20 3.8.1. the average growth in excess of 10% in relation to the year in which launched the project 20 3.8.2. the average growth of more than 5% but no more than 10% in relation to the year, which started the project 10 3.8.3. average growth will not exceed 5% in relation to the year in which launched the project 5 3.8.4. There are no plans to increase 0 3.9. The planned project applicant's average export growth for the next five tax periods after the implementation of the project the maximum to 20 3.9.1. the average growth in excess of 10% in relation to the year in which launched the project 20 3.9.2. the average growth of more than 5% but no more than 10% in relation to the year, which started the project 10 3.9.3 average growth will not exceed 5% in relation to the year in which launched the project 5 3.9.4. There are no plans to increase 0 3.10. The project's expected impact on the environment, the maximum-5 3.10.1. the project will achieve at least two of the following objectives: 1) environmental pollution reduction and control; 2) quality of life environment; 3) natural and rational use of energy; 4) prevention of public health 5 3.10.2. the project will not be achieved for at least two of the following objectives: 1) environmental pollution reduction and control; 2) quality of life environment; 3) natural and rational use of energy; 4) threats to the health of the population 0 total maximum-minimum number 135 — 35 comments. 1. N-negative rating (project application is rejected). 2. P-if the assessment is negative, the Commission may request clarification or additional application to submit the necessary documents. "; 1.10. Replace annex 4 the term "LVL" with the word "Euro". 2. the rules shall enter into force on January 1, 2014. Prime Minister Valdis Dombrovskis, Minister of the economy, environmental protection and regional development Minister ad interim of Daniel Pavļut