Will companies currently benefitting from Legacy Incentives continue to enjoy the fiscal benefits after January 1, 2014?

Will companies currently benefitting from Legacy Incentives continue to enjoy the fiscal benefits after January 1, 2014?

Yes, companies benefitting from fiscal incentives under any one of the legacy incentives prior to January 1, 2014 may continue to do so after January 1, 2014.   These companies will access the fiscal incentives by choosing to continue their benefits in any of two (2) ways, namely:

  • Operating under the Legacy Incentive until the benefits expire in keeping with the scheduled end date
  • Prior to the expiration of the Legacy Incentive, they may opt to ‘switch’ to operating under the Omnibus Incentive Legislation

 Alternately, companies may choose to operate under the Omnibus Incentive Legislation as of January 1, 2014 (that is, not have their fiscal benefits ‘grandfathered’).

Further to WTO commitments companies that opt to continue to operate under The Export Industry (Encouragement) Act and The Industrial Incentives (Factory Construction) Act will only be able to benefit from these incentives until December 31, 2015. (Similar to companies operating under the Free Zone Act).

Companies will not be permitted to simultaneously claim fiscal benefits under both the Legacy Incentives and the Omnibus Incentives regime.