Under the Tourism Act of 2009, the incentives available to registered tourism enterprises within Tourism Enterprise Zones (TEZs) are:

Fiscal incentives

  • 6 years Income Tax Holiday
  • Special 5% tax rate on gross income after the lapse of ITH
  • Tax and duty exemption on imported capital equipment
  • Tax and duty exemption on imported spare parts
  • Tax and duty exemption on imported goods consumed out of services rendered within the TEZ
  • Tax credit on locally-sourced goods for services rendered within the TEZ

Social Responsibility Incentive: tax deductions of up to 50% of the cost of environmental protection or cultural heritage preservation activities, sustainable livelihood programs for local communities, and other similar activities

Non-fiscal incentives

  • Employment of foreign nationals (in executive, supervisory, technical or advisory positions)
  • Special investors’ resident visa for foreign nationals who shall have an investment of at least US$200,000
  • Right to repatriation of investments
  • Right to remit earnings in the currency in which the investment was originally made

Also, there shall be no requisition of the property of registered enterprises, except in the event of war or national emergency, and only for the duration thereof. In any case, the affected person shall be entitled to just compensation.

Lands and buildings in each TEZ may be leased to foreign investors for a period not exceeding 50 years, renewable once for a period of not more than 25 years. The leasehold right acquired under long-term contracts may be sold, transferred or assigned, subject to the conditions set forth under the Investor’s Lease Act.

Click here for a full text of the law and implementing rules.