Senior Lawyer Marko Janićijević on the Decree on the conditions and method of attracting direct investments
Read the complete interview on the portal eKapija
(The interview was conducted by Marko Andrejić)
The following is an excerpt from the interview:
“Marko Janićijević, attorney-at-law of the Law Office Tomić Sinđelić Groza explained in the interview given to eKapija that the new Decree relies heavily on the previous one in terms of material terms and conditions and that it represents continuity in the allocation of incentive funds to attract investment.
The most important novelty is in the allocation of investment projects, and hence the criteria for analysis, depending on the number of persons to be employed, or whether there will be up to 100 or more than 100 new employees per specific project. Also, there are novelties in areas in which funds can be allocated, and from now on this is also possible for the software development sector – if it serves for product promotion, improvement of production process or the provision of services in international trade), as well as for hotel accommodation services projects in the territory of local self-government units where spa areas were established. It should also be noted that the rule was abolished that funds can be allocated for projects in the fisheries sector, which was permitted under the previous Decree – said Janićijević.
He added that under the new Decree, the procedure for allocating funds is now changed, which differs now regarding the number of new employees, because the latest modifications bring predictability and clearly defined criteria for the evaluation of investment projects up to 100 new employees.
The Ministry of Economy has confirmed to eKapija that one of the major novelties is the introduction of a scoring system for investment projects that include up to 100 new employees. The corresponding number of points will be assigned based on experience in the performing of the business activity, return on investment evaluation, business results, indebtedness indices … The minimum number of points for the allocation of incentive funds is 2.5, and the scoring system (according to EUROSTAT method) was introduced to be able already in the first phase of assessment of a larger number of applications to make a selection.