Incentives for Special Zone of Development > Guarantees and Incentives Available Under the Investment Law
Under the Investment Law, investors are granted guarantees against expropriation and nationalization. Companies and their assets cannot be attached, seized or expropriated by way of an administrative order. The Investment Law further provides no administrative body may interfere in setting prices or profit margins or revoke or suspend a license for the use of property except where the license terms are violated.
Companies established under the Investment Law enjoy a basic tax holiday from revenue tax of commercial and industrial activities and corporate income tax for a period of five years from the first fiscal year following the commencement of production or the company's activities.
Projects that are established in designated new industrial zones, remote areas, new projects funded by social fund for development and new urban communities enjoy 10 year tax holiday. Likewise, projects established in areas outside the "old valley" enjoy 20 years tax holiday. The Council of Ministers is authorized by the Investment Law to issue Decrees specifying those areas.
The companies' statutes, establishments and mortgage and loan agreements connected to its activities are exempt from stamp duties, registration and notarization fees for three years from the date of the company's registration with the Commercial Register. Land purchased for use by such company is also exempt from the payment of real estate registration fees.
A flat rate of 5% of the value of machinery and equipment that are imported which are deemed necessary for the company's project is assessed as customs.
The Investment Law grants various exemptions from certain labor requirements under the Companies Law and the Labor Law. For example, companies establishes under the Investment Law are exempt from the requirement that certain types of employees (such as drivers and messengers) be hired in the order of their registration at the employment offices.
