Special Economic Zone

Area of general economic activity geographically delimited and subjected to a special customs regime under which all goods entering, located circulating, manufactured or transformed therein or exported therefore are totally exempt from any customs, duties and fiscal or Para-fiscal charges, and enjoy, furthermore, a free exchange regime, including for offshore operations, appropriate fiscal, labor and immigration arrangements instituted and adequate to the rapid entry and efficient functioning of enterprises and investors wishing to operate there, in order to enable the fulfillment of their commercial and financial obligations abroad; provided the country expects to gain from the promotion of regional development and generation of general economic benefits and, in particular, the expansion of productive and capacity and tax base, and the creation of jobs and foreign exchange.

Fiscal Incentives

Companies operating under the Special Economic Zone regime enjoy fiscal and non-fiscal benefits, namely:

Exemption from tax on import (including the Value Added Tax (VAT) of building materials, equipment, accessories, parts and other commodities aimed at pursuing the granted activities in the ZEE’s.

• Exemption from VAT on domestic purchases;
• Fiscal Incentives for Companies Operating on the Special Economic Zone regime;
• Exemption from Juristic Persons Income Tax (IRPC) in the first three fiscal terms;
• Reduction of Juristic Persons Income Tax (IRPC) down to 50% from the 4th to the 10th fiscal term;
• Reduction of Juristic Persons income Tax (IRPC) down to 25% from the 11th to the 15th fiscal term.

Service Providers in the Special Economic Zones benefit from a 50% Juristic Persons Income Tax (IRPC) reduction for a period of five fiscal terms.

Operators at the Special Economic Zones shall benefit, as soon as they are granted their Certificates, from the following incentives related to the Juristic Persons Income Tax (IRPC):

• Exemption in the first five fiscal terms;
• 50% reduction from the 6th to the 10th fiscal term;
• 25% reduction for the project lifetime.