Investment Incentives

 

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 10% - 20% 20% - 30% 30% - 40% 40% - 50% 50% - 60% Above 60%	% of export profit deducible from income tax 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