Incentives and Benefits for Investors at EZs

17 April, 2016 12:00 AM printer

The investors will enjoy special facilities in investing in the planned 100 economic zones across the country comparing to other sectors. As of now, 59 EZs have been selected while 10 started development work.
Tax holiday for 10 years in several slabs

 100 percent tax holiday for the first two years,
 80 percent in the third year,
 70 percent in the fourth year,
 60 percent in the fifth year,
 50 percent in the sixth year,
40 percent in the seventh         year,
 30 percent in the eight year,
 20 percent in the ninth year
 10 percent in the tenth year

The investors or EZ users will get duty free import of:

 Raw materials,
 Construction materials,
 Capital machinery and finished goods
 Tax exemption from dividend

 Other benefits include

 Complete repatriation of capital and dividend,
 No ceiling of Foreign Direct Investment,
 100 percent backward linkage
 Raw-materials and accessories for export-oriented industries in domestic tariff area (DTA),
 20 percent sale of finished product to DTA from export processing area,
 Sub-contracting with DTA allowed,
 50 percent exemption of stamp duty
 Registration fees exemption for registration of leasehold land and factory space,
 80 percent exemption of Vat on all utility services consumed inside the zone.

Facilities to continue

 Duty exemption on export,
 Exemption of CD for import of 2 vehicles within 1st 5 years for foreign investors for one time,
 Exemption of double taxation subject to double taxation agreement
 50 percent rebate of income tax on salary income of expatriates for 5 years,
 Considering EZ as Customs bonded area,
 FC loan availability to ease business activity,
 FC account for both local and joint venture industry,
 Joint venture allowed,
 Royalty, technical fees will be exempted from income tax,
 Tax exemption on capital gain,
 Share transfer allowed,
 Work permits – no restrictions on issuance of work permits on project related foreign nationals and employees but limited up to 5 percent of total employees.
Planned and compiled by Sohel Hossain Patwary