Foreign SEZ investors to enjoy full ownership benefit in Pakistan....
The federal government has decided in principle that foreigners who invest in Special Economic Zones (SEZs) will be entitled to 100 per cent ownership and there will be no condition regarding the minimum amount of investment. A high-level committee has also been set up to review a proposal that non-resident Pakistanis be given a tax holiday on all kinds of income on investments including property, capital gains, dividends and profits on loans.
It has also been decided that investors in SEZs will be allowed to take abroad 100 per cent of their profit money.
According to a document made available to The Express Tribune, the government has decided to introduce Amendments in the Special Economic Zones Act under which the privilege package finalized for SEZs will be made part of the investment policy.
According to the document, it has been decided in principle that, in the proposed privilege package to promote investment in SEZs, 100 per cent foreign ownership will be given to those investing in sectors included in the SEZs’ priority list and that this will be made part of the Special Economic Zones Act. The document further states that it has also been decided that the Board of Investment (BOI) will provide the justification, in consultation with the Federal Board of Revenue (FBR), as to why 100 per cent foreign ownership cannot be allowed in certain sectors.
The document elaborates that the FBR and the BOI will prepare recommendations on the tax holiday proposal for non-resident Pakistanis. The committee will include representatives from the BOI, the Ministries of Finance and Industries & Production, and the FBR. The BOI has nominated CPEC Investment Board Project Director Asim Ayub as the focal person for the committee.
It has also been decided that the FBR and the Ministries of Finance, and Industries and Production will also appoint focal persons for the committee.
The committee will present a report on the tax exemption proposal for non-resident Pakistanis. Similarly, it will also present a report on taxes for residents on income from other sources under the Income Tax Ordinance 2001.