Publication of Investment Encouragement Act, 2021
02 May 2021
The Investment Encouragement Act, which was issued on 11 April 2021, seeks to improve on the 2013 Investment Act in terms of treatment of investors regardless of their nationality, and to create a more predictable and transparent regime that facilitates investment. Key changes include: (i) provision of new tax exemptions, including as regards the business profits tax; (ii) creation of an investment register for collecting data on investing entities; (iii) introduction of an online investment guide to clarify and facilitate investment procedures; (iv) creation of a specialized insurance company that insures investors against various risks (e.g., risks of nationalization, risks of war, domestic conflict and civil disobedience, risks of recession, etc.) for an annual premium, and (v) publication of a special exclusion list detailing the sectors and activities not available to foreign investors.
The new law also requires foreign investors to deposit at least $250,000 to obtain a license. Furthermore, it clarifies the definitions of the various types of investment projects which were regulated in the 2013 Act, including State Projects, Investment projects, National Projects, and Strategic Projects.
The law was published in Sudan Gazette of 12 May 2021 and is available at: https://moj.gov.sd/files/index/28.
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Type:
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Entry and establishment (Ownership and control)
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Promotion and facilitation (Investment facilitation , Investment incentives)
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Industry:
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