Investment and Export Incentives and Support to MSMEs
With a minimum investment threshold of US$100,000.00 and US$250,000.00, the following incentives are offered to domestic investors and foreign investors respectively.
Tax Holiday. A newly established investment enterprise that falls within any priority investment category is granted a tax holiday with respect to its corporate or turnover tax and depreciation allowance.
Tariff and Import VAT Incentives. A newly established investment enterprise that falls within any priority investment category is granted an import VAT waiver on imported specific goods as per the agreed list of items.
Export Promotion Incentives. An investment enterprise located outside the export processing zone that exports at least 30 percent of its output is entitled to the following:
- 10 percent corporate or turnover tax concession for 5 years.
- Financial planning services and advice.
- Participation in training courses, seminars, and workshops.
- Export market research.
- Advertisement and publicity campaigns in foreign markets.
- Product design and consultancy
Zone Investor Incentives. An investor operating in an Export Processing Zone and exports at least 80 percent of its outputs is exempt from payment of numerous duties and taxes, including import VAT waiver on imported goods/items, excise duty, import duty on capital equipment, corporate or turnover tax, municipal tax and depreciation allocation.
SME Support. SMEs are entitled to the following facilities:
- Support for research and development.
- Income tax deposit waiver.
- Matching grants.
- Market survey and research support.