Establishes the regime of special economic zones
03 Jan 2023
On 3 January 2023,Benin adopted Law No. 2022-38, establishing the regime for special economic zones (SEZs) within its territory. This legislation governs the creation, promotion, operation, administration, maintenance, and development of SEZs. The primary objectives are to attract foreign direct investment, promote exports, create jobs, and facilitate technology transfer. The law aims to provide a favourable legal and fiscal framework for companies operating in these dedicated areas.
The legislation outlines the various types of SEZs that can be established, the procedures for authorizing companies, and the customs and tax incentives available. The main ones include:
- Investment Period: Exemption from most entry duties and taxes on production-related materials and equipment.
- Operational Period (0-15 years): Exemption from customs duties on raw materials, corporate tax, advance tax on profits, minimum flat-rate tax, and employer's contribution on salaries.
- Beyond 15 years: Continued exemption from customs duties on raw materials and a reduced corporate tax rate of 15 per cent.
- Total exemption from entry duties and taxes on equipment renewals and modernization efforts.
- Exemption from transfer and registration duties and taxes on capital gains for transactions between SEZ companies.
- No taxation on exported goods produced in SEZs and simplified import procedures for goods intended for SEZ companies.
The law also details the responsibilities and obligations of approved companies and sets up the bodies responsible for managing and overseeing SEZs.
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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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