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Various incentives / benefits are provided to investors in specific sectors as given below:

Free Zones / Export Processing Zones

Following incentives are provided to investors / companies operating in free zone area and exporting at least 95% of their production:

  • Corporate tax (‘CIT’) exemption for a period of 5 years is available to industrial sector, thereafter, income is subject to CIT at 10%
  • CIT exemption for a period of 2 years is available to service sector companies, thereafter, income is subject to CIT at 10%
  • CIT exemption for a period of 15 years is available to all other companies operating in free zone, thereafter, income is subject to CIT at 10%
  • Exemption from customs duties and VAT is available on import of equipment, raw materials, construction material and inputs used for production of goods

Mining Sector

Following incentives are available to companies engaged in mining activities, subject to certain conditions:

  • Lower CIT of 10%, subject to certain restrictions
  • No minimum tax for the first 5 years of operation
  • Land and building taxes are subject to reduced rate of 1%, each capped at MGA 200 million
  • Exemption from custom duties, import duties and VAT on products and equipment

Other Incentives

  • Companies engaged in renewable energy, tourism, industrial, civil work, construction and transformation are eligible for reduction in CIT equal to the tax calculated on 50% of the amount of investment. The amount of reduction in a tax year cannot exceed 50% of actual tax liability. The balance is allowed to be carried forward, with the same limitation, indefinitely
  • Entities licensed to practice microfinance activities are exempt from CIT for the first five years of operation. Thereafter, the microfinance company is subject to CIT at a rate of 20%
  • Petroleum code provides a custom and import duty exemption on hydrocarbon research, exploration and exploitation activities
  • Company engaged in leasing activities are eligible for CIT exemption and reduction of tax rate for four years