The Investment Promotion Law (16/1995,68/2003) provides the investor with total customs exemptions on imported fixed assets, ease of licensing and registration procedures, and freedom from customs duties for export industries on imported raw materials.
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According to the Investment Promotion Law No.16 of 1995 as amended in 2000, tax and customs incentives are made available to the sectors stipulated these are: industry, agriculture, hotels, hospitals, maritime transport and railways, leisure and recreational compounds, convention and exhibition centers, transporting & distributing water, gas & oil, call and contact centers and research and development.
Enterprises in these sectors enjoy the following exemptions:
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Income tax breaks for 10 years, the percentage of which depends on the location of the facility in the development zone.
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Customs duties and sales tax exemptions on all fixed assets
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Capital and production goods are exempted from customs duties and sales tax.
Freedom form customs duties:
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Fixed assets are exempted from fees and taxes provided that they are imported into the Kingdom for the use of the project exclusively. These assets include: the machinery, equipment and supplies used in the project including furniture and equipment for hotels and hospitals.
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Imported spare parts for the project shall be exempted from fees and taxes provided that their value does not exceed 15% of the value of the fixed assets for which they are required.
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Fixed assets required for the expansion, development and modernization of the project shall be exempted from fees and taxes if such expansion, development or modernization shall result in an increase in the production capacity of the project by no less than 25%
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Hotel and hospital projects shall be granted exemption from fees and taxes once every seven years for the purchase of furniture and supplies required for modernization and renewal
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Any increase in the value of fixed assets which are imported for the project shall be exempted from fees and taxes, if such an increase is a result of a rise in the price of such assets in the country of origin, a rise in freight charges applicable thereto, or of changes in exchange rate.
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