Companies registered to operate as free zone developers/
enterprises do not pay CIT for the first ten years of operation.
After the ten year corporate tax holiday has expired, the CIT rate on export outside
the domestic market is 15% while income earned from sales in the domestic market is
taxed at 25%.
The Free Zone Act provides that the President may, on the
recommendation of the Board, declare any area of land or building as a
free zone; and any airport, river port, seaport or lake, port as a free port.
Only corporate bodies registered under the Companies Code or the Incorporated
Private Partnerships Act and licensed to do may develop and/or manage a free zone
or carry on a trade, business or industry within a free zone.
Criteria
No person shall carry on a trade, business or industry within a free zone unless it is registered under the Companies Code 1963 (Act 179); or the Private Partnership Act 1962 (Act
152) and is the holder of a license authorizing the carrying on of that trade, business or
industry under the Free Zone Act may develop and/or manage a free zone or carry on a
trade, business or industry within a free zone.
On the recommendation of the Board, any area of land or building, airport, river port,
seaport or lake may be declared as a free zone;
The Board is required to respond to applications within 28 working days
Only corporate bodies registered under the Companies Code or the Incorporated Private
Partnerships Act and licensed to do so may develop and/or manage a free zone or carry
on a trade, business or industry within a free zone.
