Special Economic Zones (SEZs) are geographically designated areas set aside for specifically targeted economic activities.
The Special Economic Zones Act 16 of 2014 provides for the designation, promotion, development, operation and management of SEZs. The Act commenced in February 2016 and several SEZs have been designated since.
A number of incentives will be available to ensure SEZs growth, revenue generation, creation of jobs, attraction of Foreign Direct Investment (FDI) and international competitiveness. These may include:
- preferential 15% corporate tax rate
- building allowance [PDF]
- employment tax incentive
- customs controlled area
- 12I tax allowance.