1. This Annex applies to incentives provided to enterprises by a Party or any entity acting on its
behalf.
1P5. Parties shall not influence or direct municipalities, regional development authorities or any other entity, or apply incentive practices through same, so as to circumvent the intent and provisions of this Annex.42
2. In this Annex, "incentive" means:
(a) a contribution with a financial value that confers a benefit on the recipient, including cash grants, loans, debt guarantees or an equity injection, made on preferential terms;
(b) a reduction in taxes or government levies otherwise payable aimed at a specific enterprise, whether organized as one legal entity or as a group of legal entities, but does not include a reduction resulting from a provision of general application of a tax law of a Party; or
(c) any form of income or price support that results directly or indirectly in a draw on the public purse.
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42 This paragraph was added to the Agreement on Internal Trade by means of the Fifth Protocol of Amendment