One of the financial incentives for businesses with a permit to operate within a special economic zone is non-payment of corporate tax for 15 years, according to the Special Economic Zone Authority (SEZA). Board Director Vera Raga, when giving a presentation during the Port Moresby Chamber of Commerce and Industry (POMCCI) breakfast yesterday, highlighted that the SEZ Act 2019 offers comprehensive incentive packages. One of which is the 15-year tax exception for businesses operating within the SEZs, designed to attract investment and drive economic growth within the designated zones.
Additional Benefits
Other benefits include:
- Free import duty tax during the development stage
- Further incentives to be discussed on a case-by-case basis
- MOUs underway with competent agencies for ease of doing business to align functions
Mr. Raga also mentioned that businesses with 50 percent national employees will have a tax incentive of 50 percent. Additionally, businesses with 51 percent to 71 percent national employees will receive a 70 percent tax incentive, while those with 76 percent to 100 percent national employees will enjoy an 80 percent tax incentive.
Non-Financial Incentives
He highlighted that there are also non-financial incentives which apply to all proposed SEZs, including:
- Security of land tenure with a 99-year SEZ lease to ensure long-term stability and confidence for investors through extended land leases
- A one-stop shop simplifying processes and reducing bureaucracy for investors, making it easier to set up and operate within SEZs
- On-site permanent residency visas providing investors and their families with the convenience and security of residing on-site, enhancing their commitment and presence in the SEZs
- A Special SEZ Visa and SEZ work permit to facilitate the smooth entry and legal stay of investors and their foreign employees, promoting efficient business operations within SEZs
In terms of SEZA’s role, Mr. Raga said the authority’s functions are investment-focused. “The Authority is ready to work with the investors and will listen to investors’ concerns,” Mr. Raga said. “The Special Economic Zone incentives are not only for Foreign Direct Investments but for both local and foreign investors who are willing to go downstream and create employment for our people.”
