The government has announced a set of incentives for investors in economic zones and high-tech parks, including complete tax-waiver facility on their dividend incomes. The facilities have been offered for the economic zones administered under the Bangladesh Economic Zones Authority Act 2010 and high-tech parks operated under the Bangladesh Hi-Tech Park Authority Act 2010, officials said. The offers include complete tax-waivers on a company’s dividend income, capital gains from transfer of shares and on payable royalties, technical know-how and technical assistance until 10 years of commercial operation, according to a gazette notification issued by National Board of Revenue (NBR) last week. However, high-tech park investors will get 50% tax-waiver. Cent percent tax-waiver facility on dividend income has also been offered for high-tech park developers for the same period. The offers have been made in line with instructions by Finance Minister AMA Muhith during last June budget speech. In his budget speech, finance minister said special incentives were on the cards to encourage investment in developing economic zones and high-tech parks. He also proposed to allow full-exemption of value added tax on the electricity bill of developers of high-tech parks and on the procurement provider services of developers and investors. Besides, foreign technical experts employed in high-tech parks and economic zones will enjoy a 50% exemption of income tax for three years from the date of appointment. However, the offer will be applicable until five years of commercial operation of the employer company. To avail the benefit, investors, developers and the foreigners in both economic zones and parks will have to obtain Taxpayers Identification Number (TIN) and maintain book of accounts and file income tax returns regularly. Earlier, in July, the NBR offered 10-year tax holiday for investors and 12-year tax holiday for the developers of the economic zones and the high-tech parks. On July 1, it also allowed duty-free import of capital machinery, construction material and development equipment for the economic zone investors. Developers and investors of the economic zones and high-tech parks will be completely exempted from customs, regulatory and supplementary duties and VAT on imports of materials locally unavailable, according to earlier gazettes. The government plans to establish 100 economic zones across the country over the next 15 years, which are expected to generate about 10m additional jobs. By 2030, the export earnings only from the economic zones are expected to stand at $40bn, according to BEZA.
