June 22, 2018
Budget 2018-19: Freeport Regime
- the corporate tax exemption granted to freeport operators and private freeport developers on export of goods will be removed;
- Freeport operators and private freeport developers will continue to be exempted from the Corporate Social Responsibility (CSR) contribution;
- The current tax regime will continue to apply until 30th June 2021 to companies which have been issued with a freeport certificate before 14th June 2018;
- Repair and maintenance of heavy duty equipment will be introduced as a freeport activity;
- An exhibition area being used for the purpose of vault activities will be authorised;
- The 50% cap imposed on sales of goods on the local market will no longer apply;
- The maximum period for warehousing of goods in the Freeport will be aligned to that of a bonded warehouse, that is 24 months. A moratorium period of 42 months will be granted on goods warehoused in the Freeport before 14th June 2018;
- Provision of services relating to mobile capital will not be allowed within the Freeport. The holder of a Freeport certificate, issued before 16th October 2017, may continue to provide services within the Freeport until 30th June 2021;
- Manufacturing activities will not be allowed in the Freeport. A transitional period will be granted to existing manufacturing companies; and
- Enterprises outside the freeport zone will not be allowed to store goods in a freeport zone. However, authorisation already granted to a third party freeport developer to provide warehousing facilities to an enterprise outside the freeport zone for storage of goods will continue to apply until 30 June 2020.
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