The incentives under the Free Trade Zone Regime are divided into two categories:
- Incentives subject to a fixed term
a) Exemption from taxes on capital, net assets, land and real estate transfer for a 10-year period.
b) Municipal taxes and commercial operation license for a 10-year period.
c) General Income Tax Rate
| Type of Project | Location of Company | Tax Rate + Years | ||
|---|---|---|---|---|
| For a Manufacturing Regular Project | Within GMA | 6% for 8 years | 15% for following 4 years | — |
| Outside GMA | 0% for 6 years | 5% for following 6 years | 15% for following 6 years | |
| For Manufacturing Megaproject, Services and Trading. | Within GMA | 0% for 8 years | 15% for following 4 years | — |
| Outside GMA | 0% for 12 years | 15% for following 6 years | — | |
- Incentives not subject to a fixed term
Exemptions from:
a) Import duties on raw materials and other items required for production and operations.
b) Import duties on equipment, machinery, spare parts, among others.
c) Taxes on importation of fuels.
d) Taxes on the exportation and re-exportation of products.
e) National value added tax (VAT).
f) Taxes on foreign remittances (withholding tax on royalty payments, commissions, among others).
g) Taxes on importation and exportation of samples.
h) Taxes on distribution of dividends among the partners (with exceptions).