Adopts a national policy on special economic zones
23 Aug 2022
On 23 August 2022, Namibia adopted a Special Economic Zone Policy (SEZ Policy). The Policy includes a provision for both fiscal and non-fiscal investment incentives for various investment categories such as exporters and manufacturers. Among the incentives introduced by the SEZ Policy are:
a) Fiscal Incentives: lower corporate income tax rates, reduced Import duties/customs tariffs, capital deductions allowance, and research and development allowance
b) Non-fiscal Incentives: establishment of a One-Stop Shop and competitive utility tariffs
c) Facilitated provision of Visa for non-resident foreign investors.
In order to ensure a seamless transition from the past Namibian Export Processing Zone model to the envisaged SEZ, the Policy recommends the following:
• The Ministries of Finance and Industrialisation and Trade will allow for a grandfathering period of a maximum of 5 years for existing investors in the Export Processing Zones (EPZs), effective from 31 December 2020 to 31 December 2025,
• An approved enterprise under the existing EPZ Act that intends to continue its activities as an SEZ enterprise under the proposed SEZ legislation shall have to apply to the Minister of Industrialisation for approval.
• Notwithstanding the repeal of the EPZ Act and the provisions for manufacturers incentives in the Income Tax Act, an approved enterprise under the EPZ law will be entitled to receive existing benefits during the grandfathering period.
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Type:
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Promotion and facilitation (Investment facilitation , Investment incentives, Special economic zones)
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Industry:
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