Commercial Scale Agriculture Projects in NCER
A qualified company undertaking approved agriculture projects may apply for the following tax incentives:-
Tax Incentives for Approved Agriculture Companies
- 100% Income Tax Exemption on statutory income for a period of 10 years, starting from the first year of profitability, or
Investment Tax Allowance of 100% on qualifying capital expenditure for a period of 5 years; - Import duty and sales tax exemption on raw materials, components and machinery as long as such goods are not locally produced
Application for the above incentives should be submitted to NCIA by submitting these forms:-
- Pre-Application Form for Pioneer Status
- Pre-Application Form for Duty Import and Sales Tax Exemption
Additional Incentives for Approved Agriculture Companies
- Tax exemption on dividends paid to shareholders from income that is tax exempt;
- Stamp duty exemptions on land acquisitions and mortgage transactions.
Claims should be submitted to IRB.
Tax Incentives for Investors who Invest in an Approved Agriculture Based Company
- Holding companies investing in a subsidiary (approved company) are eligible for tax deductions equivalent to the amount invested in the subsidiary, as long as the subsidiary is at least 70% owned.
- A company or an individual investing in the approved company is eligible for a tax deduction equivalent to the total investment made.
Claims should be submitted to IRB.