ISLAMABAD: The PTI-led government is all set to allow 100 percent ownershipfor foreign companies investing in Special Economic Zones (SEZs) underChina Pakistan Economic Corridor (CPEC), reported *The News*.
The proposed incentives for SEZs included income tax exemptions, no taxeson non-residents and income tax exemptions for expatriates till 2040. In ameeting held among different ministries, divisions and FBR for finalisingincentives for SEZs, a threadbare discussion showed that there is aproposal to allow 100 percent foreign ownership and no minimum investmentrequirement for the upcoming SEZs because these incentives are not part ofpresent SEZ Act.
The meeting decided to make these proposals part of the existing SEZ Act,at least for those sectors notified by the government. The meeting alsoasked for sharing justification of sectors not included in the 100 percentforeign ownership.
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The meeting also discussed not taxing the non-resident’s other incomesources of enterprises including property, investments including profit ondebt, dividends and capital gains if it constitutes 5 to 10 percent ofannual gross revenue. It was decided that both FBR and Board of Investmentwill get back on this point after completing their internal discussion.
