Full exemption for first 15 years followed by partial exemption for next 5 years. Under Article 27, there is exoneration from income taxes for a 20-year period.
|Year||% of Income Taxable|
|First 15 Years||Total Exoneration|
|16th Year Onwards||Partial Exoneration|
|First Year End (16th)||15%|
|Second Year End (17th)||30%|
|Third Year End (18th)||45%|
|Fourth Year End (19th)||60%|
|Fifth Year End (20th)||80%|
Accelerated Depreciation on peripherals including computers and software:
|Category||Depreciation Value (Per Year)|
|Survey and research costs||100%|
Strong Investment Code
Strong investment safeguards under Law on Investment Code 1989 (Modified 2002). Under Article 29 (Investments Oriented Towards Export and Re-export),
|Exemption from customs duty and from income taxes on the import of equipment goods and materials needed in installation, operations and production of the enterprise including among others:
|Payroll taxes and other direct internal taxes for a period of 15 years||100%|
|Exemption from audit charges||100%|
Note: To qualify for the incentives from the investment code 2002, an investor has to be established in one of the free zones or industrial parks. For investments made outside the free zones or industrial parks, the applicable incentives will vary depending on the impact of the project. The amount of fiscal incentives and duties exemption is not fixed in the code, they are up to # yrs.
Fiscal and Custom Benefits
Under Article 40 (Free Trade Zones), Promoters, operators and users of foreign trade zones (physical persons or corporate bodies) shall be entitled, in addition to the benefits provided for by the Code, to fiscal and customs benefits mentioned in the law on foreign trade zones. Determined on a case by case basis by the Inter Ministerial Commission on investments.
|Profit and Capital Repatriation||100%|
|Import Duty on Capital Goods, Office Equipment Exemptions||100%|
|Taxation on reimbursement of debts incurred abroad||100%|