Existing manufacturing/services company expanding its operation into the less developed areas or newly established manufacturing/services company is eligible for:
i. Income Tax Exemption of 100% up to fifteen years of assessment (5+5+5) commencing from the first year of assessment the company derives statutory income. Unabsorbed capital allowances incurred during the exemption period can be carried forward and deducted from the post exemption income of the company. Accumulated losses during exemption period can be carried forward and deducted for a period of seven consecutive years;
ii. or; Income Tax Exemption equivalent to 100% of qualifying capital expenditure (Investment Tax Allowance) incurred within a period of ten years. The allowance can be offset against 100% of statutory income for each assessment year. Unutilised allowances can be carried forward until fully absorbed; ii. Stamp duty exemption on transfer or lease of land or building used for development in relation to manufacturing and services activities;
iii. Withholding tax exemption on fees for technical advice, assistance or services or royalty in relation to manufacturing and services activities up to 31 December 2020;
iv. Import duty exemption on raw materials and components that are not produced locally and used directly in the manufacture of finished products subject to the prevailing policy, guidelines and procedures;
v. Import duty exemption on machinery and equipment that are not produced locally and used directly in the activity for selected services sector subject to the prevailing policy, guidelines and procedures.