In the last period, JGL was awarded the status of beneficiary of incentive measures for the "Svilno 2" project by the Ministry of Economy pursuant to the Act on Investment Promotion and Improving the Investment Climate.
The goal of these measures is to foster economic growth and realise the economic policies of the Republic of Croatia, integrate them into international exchange and enhance the investment and competition capabilities of Croatian entrepreneurship. As far as business entities are concerned, the goal and purpose is the creation of internationally competitive, transparent and attractive investment measures for legal or natural persons registered in the Republic of Croatia and income taxpayers who operate in the Republic of Croatia.
We will take this opportunity to remind you that we announced an investment in the new manufacturing facility "Pharma Valley" in the value of 35.8 million euro in 2013, which we plan to use to secure capacity for our further global growth in the existing and new markets.
The Ministry subsequently issued a decree stipulating that the maximum incentive intensity shall be 40 % of an investment, which amounts to 103 million kuna to be used in the period of up to ten years. JGL will use the incentive with a decreased income tax rate of 0 % (the regular rate is 20 %). When calculating income tax for 2013, the tax incentive used amounted to 2.7 million kuna.