Special Economic Zones in the OIC Region:
Learning from Experience
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Zones Fiscal Incentives Non-fiscal Incentives
within five years. This allowance can be
offset against 70% of its statutory income
for each year of assessment reducing
corporate income tax.
Exemption from payment of sales tax
Exemption from payment of excise duty
Exemption from payment of service tax
Reinvestment allowance
Expedited timescale for license
applications
Human Resource Development Fund
Special industrial building allowance for
training
Deductions for approved training, pre-
employment training and non-employee
training
Morocco
Tanger Med FTZ
Kenitra Automotive Free Zone
Midparc
Full exemption from corporate tax for first
five years following by fixed rate of 8.75%
for 20 year period
Subsidies for some industries through
Hassan II fund
Contribution of up to 30% of cost of
buildings
Contributions of up to 10% of costs of
acquiring new capital goods
Total state participation up to 15% of total
investment
Contributions of up to 30% of total land
acquisition costs
Import duty exemptions
VAT exemptions for capital costs such as
equipment good, materials and tools
required to achieve investment projects
Support system for operators in training
efforts
Training plan tailored to needs of the
automotive sector
Nigeria
Ogun Guangdong FTZ
Lekki Free Zone
100% tax holidays for all federal, state and
local government taxes, rates, duties and
levies
Provision of offsite infrastructure
Turkey
Mersin Free Zone
Antalya Free Zone
Exemptions from corporate income tax
Free transfer of profits
Income tax exemptions over salaries
providing a minimum of 85% of goods are
exported
Exemption from custom related taxes on
imports to economic zones
100% foreign investment is allowed
No minimum requirement for capital
investment
Sales to domestic market is allowed
No restrictions on work permits for
expatriate employees
Stocks can be kept in FTZs for unlimited
periods of time
Incentives and advantages are available
to all firms regardless of their origin
United Arab Emirates
Jebel Ali Free Zone
0% corporation tax for 50 years
(renewable concession)
100% foreign ownership allowed
No restrictions on repatriation of capital