Table 3.10:
Summary of Investment Incentives Available to Domestic and Foreign Investors |
| General
Incentives |
| Across the board incentives for investors |
Zero-rate on Customs Duty and Consumption Tax
on most plant, machinery and equipment
Zero-rate on Customs Duty and Consumption Tax on raw materials and
packaging materials used in the production of goods by manufacturers and
small businesses
Unlimited carryover of losses from previous years
Accelerated depreciation on plant and equipment
Full and unrestricted repatriation of capital, profits and dividends
Benefits of double taxation treaties with the UK, Canada, and CARICOM
countries |
Special
Incentives
(provided in additional to general incentives) |
| Firms producing Non-traditional products for
export |
Export Allowances for non-traditional exports
to markets outside of CARICOM. The actual amount deducted depends on
proportion of export sales to total sales. |
| % of export sales to total sales |
% of export profit deducible from income tax |
10% - 20%
20% - 30%
30% - 40%
40% - 50%
50% - 60%
Above 60% |
25%
35%
45%
55%
65%
75% |
Sector
Incentives
(provided in additional to general incentives) |
| Agri-business |
Waivers of Duty and Consumption Tax on a wide
range of machinery and equipment for land preparation and cultivation
including agricultural hand tools and spares for agricultural machinery
Waivers of duty and consumption tax on vehicles imported in accordance
with the published guidelines for farming enterprises
Duty and Consumption Tax waivers on a wide range of agro-processing
equipment
Duty-free importation on a wide range of agro-chemicals (e.g.
insecticides, herbicides, fungicides, etc.)
Allowances for expenditures incurred for development and cultivation
purposes |
| Manufacturing |
Duty and Consumption Tax
rate of zero on a wide range of process machinery and equipment, including
packaging equipment
Exemption on a wide range of auxiliary plant equipment such as boilers,
fork lifts, scales for continuous weighing, continuous-action conveyors,
etc.
Exemption from Duty and Consumption Tax on vehicles qualifying under the
Customs Duties (Amendment) (No.1) Order 2004
Exemption from import duty and consumption tax on packaging materials for
manufacturers registered under the Consumption Tax Act
Duty and Consumption Tax rate of zero on most raw materials for
manufacturing companies registered under Consumption Tax Act |
| Tourism |
Companies are eligible once every five years
for a package of incentives, comprised mainly of Duty and Consumption Tax
waivers on basic furnishing, equipment, and building materials. Concessions
are limited to 50% of the value of the items for new projects and 25% for
renovations and extensions to existing hotels.
Tax holidays |
| Fisheries |
Exemption from Import Duty
on trawlers, fishing vessels, spares for fishing boats and trawlers, wide
range of fishing equipment
Exemption from Duty and Consumption Tax on fish/seafood processing
equipment, packaging material and other inputs for processing |
| Forestry |
Exemption from Duty and Consumption Tax on
equipment used in logging, land development and sawmilling
Duty and tax exemptions on outboard engines up to 75 hp; over 75 hp, 5%
duty |
| Mining |
Exemption from duty and
consumption tax on a range of mining equipment, equipment used for land
clearing, and certain outboard engines
Preferential consumption tax rate of 10% on aviation fuel
For large-scale mining, waiver of duty and consumption tax on fuel,
machinery, and equipment spares, and on vehicles imported exclusively for
the business
Tax holidays |
| Housing |
Duty and tax exemption on selected building
materials |
| Aviation |
Preferential consumption tax
rate of 10% |
| ICT |
Waivers of duty and consumption tax on
machinery and equipment
Tax holidays |
