What are the benefits under the Omnibus Incentives Legislation?

What are the benefits under the Omnibus Incentives Legislation?

The new fiscal incentives framework provides for varying levels of relief in respect of customs duties, additional stamp duties and corporate income tax.  These benefits are granted via the following four (4) specific Acts:

  • The Fiscal Incentives Act - NEW

Targeted at small and medium size businesses, provides for the reduction of the effective corporate income tax rate by applying:

    • An Employment Tax Credit (ETC) at a maximum value of 30%
    • A Capital Allowance applicable to a broadened definition of industrial buildings 
  • The Income Tax Relief (Large-Scale Projects  and Pioneer Industries ) Act – NEW

Targeted at large-scale projects and/or pioneering projects, this piece of legislation provides for an improved and more attractive rate for the Employers’ Tax Credit (ETC). Projects to be designated either as large-scale or pioneer will be based on the decision of Parliament having been informed by an Economic Impact Assessment.  

    • Large Scale projects will be identified as such based on the value of the capital expenditure, employment created and business linkages secured.
    • Pioneer Industries projects are identified as those employing new, cutting edge and innovative methodologies and technologies. Such projects need not be large in scale. 
  • A Customs Tariff (Revision) Resolution – AMENDED

Targeted at the productive sectors, this Act provides for the duty free importation of capital equipment and raw material.   Special categories will be created for persons in the manufacturing, tourism and Creative industries to benefit from a duty rate of 0% for industry-related consumer goods.

  • A Stamp Duty Act – AMENDED

Targeted at the manufacturing sector, this piece of legislation provides stamp duty exemption on raw materials and non-consumer goods.