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The benefits of the investment law |
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Incentives provided by law for
investors
The projects established within the framework of this Law shall
enjoy the following privileges:
A) Exemption of Machinery, Equipment and tools necessary
for executing the project from all customs duties and taxes and taxes of similar
effect.
B) Exemption of Equipment, Spare Parts and
Raw Materials necessary for operation of the project from all customs duties and
taxs imposed on import and other taxes of the same impact for a period of five years.
C) Exemption of the project from income tax
on its activity for a period of five years as from the date of starting production
or work as per nature of the project. This period may be extended to an additional
period of three years by decision of General People’s Committee upon submission
of the Secretary. The profits resulting from the project activity shall also enjoy
such exemptions if reinvested.
D) Exemption of goods orientated to export
from production tax as well as from tax and fees imposed on export when exported.
E) Exemption of the project from stamp duty
tax imposed on Commercial documents and documents used thereby.
Exemptions mentioned in paras (a, b, d) hereof
shall not include the fees imposed against services such as port, storage and handling
fees.
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The rights guaranteed by law for investors
The investor has the right to re-export his invested capital
in the following cases:
Expiry of the project period.
Liquidation of the project.
Sale of the project wholly or partly.
Elapse of a period not less than (5) five years from the date of issue of permits
for investment.
Retransfer of foreign capital to abroad in the same manner as it was brought after
expiry of six months from the date of entry thereof if
difficulties or conditions beyond control of the investor prevent investment thereof.
Net profits and benefits distributed and interests achieved by the project are allowed
to be transfered annually abroad.
The investor has the right to employ foreigners / whenever the national substitute
is not available the foreign employees recruited from abroad shall have the right
to transfer their salaries, wages and any other benefits or gratuities for them
within the framework of the project to abroad.
The executive regulations shall organize the terms and conditions for implementing
the provisions of this Article.
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Safeguards guaranteed by law for investors
The investment project shall not be subject to the forms specified in prevailing
legislations, nor subjected to registration procedures in the Commercial and Industrial
Register and Importers and Exporters Register.
The executive regulation shall specify the legal forms of investment projects allowed
for construction under the provisions of this Law, and the rules for construction
and procedures for registration in the Investment Register prepared for this purpose.
The investment project shall have autonomous status with independent financial commitment
by mere registration thereof in the said Register
contribute to achieving food security or using equipment as would achieve savings
in electric power / energy or water or environmental protection shall enjoy the
exemptions indicated in paragraphs (b & c) of Article (10) of this Law for an
additional period by decision of General People’s Committee, upon submission of
the Secretary. The executive regulations shall specify the conditions for considering
the project as achieving these considerations.
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Obligations of the investor
Machinery, equipment, tools, spare parts and raw
materials imported for the purposes of the project shall not be disposed of by sale
or abandonment unless by approval of the Board after payment of the Customs duties
and taxes imposed on import thereof. It is not allowed to use them for other than
the purpose for which the license was granted.
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To download the Law No 5 & Executive please
click here
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