The International Trade Zone Act 1995 and the International Trade Zone Regulations 1995 provide for the establishment of free trade zones, which are delimited by a declaration of the Minister for Finance Trade and Investment and can be for one business entity or a group of entities. The International Trade Zone (SITZ) are regulated by the Financial Services Authority.
The concessions available to licence holders in SITZ include:
- Exemption from customs duties on capital equipment to be used in SITZ;
- Exemption from Business Tax, Customs Tax and Withholding Tax;
- Exemption from fees in respect of “gainful occupation permits”
- Entitlement to employ 100% foreign labour;
- A licence holder can apply for permission to sell within the domestic sector.
Companies establish in the free zone are free of taxes.