Adopted Investment and Export Promotion Agency Act
01 Jan 2010
The Act establishes an Investment and Export Promotion Agency (GIEPA), and provides inter alia guidance on investment, priority sectors, investors guarantees and eligibility criteria for investment incentives. The new law also provides incentive packages to investors investing in priority sectors, namely agriculture, fishery, manufacturing, tourism, forestry, energy, mineral exploitation, financial services, investment banks, housing finance institutions and other services. Incentives include a tax holiday on corporate or turnover tax, depreciation allowance, withholding tax on dividends, import sales tax waiver in respect of the import of its manufacturing plant, construction materials and spare parts for a period of five years from the date of signing of the investment agreement; and raw and intermediate inputs, for a period of five years from the date of commencement of operations. In order for an investor to be considered for the above incentives an investment of at least U.D. $250 000 should be made. Also, the law offers various kinds of incentives for businesses located within designated economic zones. The incentives depend on the percentage of goods exported for up to 10 years (export license duration) and are conditional on meeting the 80 percent export requirement and other basic requirements, such as, submission of audited financials, compliance with EZP statutes. For businesses exporting up to 30 percent of their goods the following incentives may apply: 10 percent levy on corporate or turnover tax, benefit from export market intelligence.
Type:
-
Promotion and facilitation (Investment facilitation , Investment incentives, Special economic zones)
Industry:
Inward FDI:
No
Outward FDI:
No
Sources:
