EXEMPTIONS AND RELIEFS
- The Commission shall, for the purpose of promoting foreign investments within the State, grant the investor the tax exemption or the relief contained in Sub‐section (a) out of the following tax exemptions or tax reliefs. In addition, one or more than one or all of the remaining tax exemptions or tax reliefs may be granted if it is applied:
(a) income tax exemption for a period of five consecutive years including the year of commencement on commercial scale to any business for the production of goods or services, moreover, in case where it is beneficial to the Union, income tax exemption or relief for suitable period depending upon the success of the business in which investment is made;
(b) exemptions or reliefs from income tax on profits of the business if they are maintained for re‐investment in a reserve fund and re‐invested therein within 1 year after the reserve is made;
(c) right to deduct depreciation from the profit, after computing as the rate of deducting depreciation stipulated by the Union, in respect of machinery, equipment, building or other capital assets used in the business for the purpose of income tax assessment;
(d) if the goods produced by any manufacturing business are exported, relief from income tax up to 50 percent on the profits accrued from the said export;
(e) right to pay income tax on the income of foreigners at the rates applicable to the citizens residing within the Union;
(f) right to deduct expenses from the assessable income, such expenses incurred in respect of research and development relating to the business which are actually required and are carried out within the Union;
(g) right to carry forward and set‐off the loss up to 3 consecutive years from the year the loss is actually sustained within 2 years following the enjoyment of exemption or relief from income tax as contained in sub‐section (a), for each business;
(h) exemption or relief from custom duty or other internal taxes or both on machinery, equipment, instruments, machinery components, spare parts and materials used in the business, which are imported as they are actually required for use during the period of construction of business;
(i) exemption or relief from customs duty or other internal taxes or both on raw materials imported for production for the first three‐year after the completion of construction of business;
(j) if the volume of investment is increased with the approval of the Commission and the original investment business is expanded during the permitted period, exemption or relief from custom duty or other internal taxes or both on machinery, equipment, instruments, machinery components, spare parts and materials used in the business which are imported as they are actually required for use in the business expanded as such;
(k) exemption or relief from commercial tax on the goods produced for export;
- The Union Government guarantees that a business formed under the permit shall not be nationalized within the term of the contract or the extended term if such term is extended.
- The Union Government guarantees not to suspend any investment business carried out under the permit of the Commission before the expiry of the permitted term without any sufficient cause.
- On the expiry of the term of the contract, the Union Government guarantees the investor invested in foreign capital to disburse his rights in the category of foreign currency in which such investment was made.
RIGHT TO USE LAND
- The Commission may allow the investor actually required period of the right to lease or use land up to initial 50 years depending upon the category of the business, industry and the volume of investment.
- The Commission may extend the period of consecutive 10 years and for further 10 years after the expiry of such period to the investor desirous of continuation of the business after the expiry of the term permitted under section 31, depending upon the volume of investment and category of business.
- The Commission may, for the purpose of economic development of the Union, allow to make investment on such land by obtaining the initial agreement from the person who is entitled to lease or use land with the prior approval of the Union Government.
- The Commission may, from time to time, stipulate in respect of rates of rent for the land owned by the Government departments and organization with the prior approval of the Union Government.
- The investor has the right to carry out, in performing the contract system of agricultural and breeding business in farms, only by joint venture system with citizen investors which are allowed to carry out by the citizens.
- The Commission may, for the purpose of the development of the entire Nation, stipulate longer than the period for the right to lease or use land contained in this Law, for enjoyment of the investors who has invested in the region where the economy is less developed and difficult to access with the approval of the Union Government.