This is a support whereby the income tax withholding deducted from employees' wages is covered by the state for investments under Region 6 incentives.
This support is a mechanism designed to encourage the creation of additional employment, especially in Region 6 investments, and significantly reduces personnel costs.
The wage income tax withholding for additional employment created through an incentive-certified investment in Region 6 is not paid for 10 years. The employer does not pass the tax on the employee's gross wage onto its cost base.
Combined with SSI employee-employer share support, personnel costs in Region 6 incentive investments are reduced by up to 30-40%.
During the withholding tax declaration period, the withholding amount for the employee is not paid to the tax office; it is treated directly as state support under the incentive scheme.