How do agricultural projects benefit under the Omnibus Incentives?

How do agricultural projects benefit under the Omnibus Incentives?

Agricultural project can benefit from the following incentives:

  • Employment Tax Credit (ETC) and thus face an effective corporate income tax rate as low as 17.5% 
  • Capital Allowances that cover, among other things, a broadened definition of ‘industrial buildings’
  • Duty-free Importation of Equipment and Machinery, as well as revised tariff rates ranging from 0% to no higher than 20% (with some exceptions).
  • Productive Input Relief (PIR) that provides for duty free importation of certain agricultural-related equipment and machinery used in the production of primary products or in quality control and testing of agricultural products that would have normally attracted customs duties and the Additional Stamp Duty (ASD) when these are being purchased for productive use.
  • Concession on specific vehicles, where farmers registered with their local Rural Agriculture Development Authority (RADA), are able to access a concession on specific vehicles for farming purposes once in every five (5) years. Eligible vehicles include Toyota Hilux, Nissan Frontier, Ford Trucks other than F1 50s, and other pickups.  General information on this concession is available HERE

Agricultural projects can also benefit under the Income Tax Relief (Large-Scale Projects and Pioneer Industries) Act, where they qualify, for an attractive rate under the Employment Tax Credit (ETC) system.