Fundamental Incentives Reform
The Honourable Minister of Finance tabled Bills to introduce the following legislation in Parliament recently:
- The Fiscal Incentives (Miscellaneous Provisions) Act, 2013 and
- The Income Tax Relief (Large-scale Projects and Pioneer Industries) Act, 2013.
These Bills, when passed and subject to any amendments, will institute far reaching changes to the regime of fiscal incentives. Significantly, the suite of existing incentives will be replaced by more generous capital allowances, particularly for manufacturers and expenditure on intellectual property, as well as an Employment Tax Credit aimed at encouraging firms to increase employment. The second Bill will allow the Minister of Finance to designate an approved large scale project or an economic activity as an approved pioneer industry. This will allow him to provide income tax relief for businesses in those industries.
Our Tax Newsletter provides an analysis of the proposed provisions. We encourage you to contact any member of our team listed on the right to discuss how these changes may affect your business.
Download Full PDF