ISLAMABAD: The PTI-led government is all set to allow 100 percent ownership for foreign companies investing in Special Economic Zones (SEZs) under China Pakistan Economic Corridor (CPEC), reported *The News*.
The proposed incentives for SEZs included income tax exemptions, no taxes on non-residents and income tax exemptions for expatriates till 2040. In a meeting held among different ministries, divisions and FBR for finalising incentives for SEZs, a threadbare discussion showed that there is a proposal to allow 100 percent foreign ownership and no minimum investment requirement for the upcoming SEZs because these incentives are not part of present 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 also asked for sharing justification of sectors not included in the 100 percent foreign ownership.
The meeting also discussed not taxing the non-resident’s other income sources of enterprises including property, investments including profit on debt, dividends and capital gains if it constitutes 5 to 10 percent of annual gross revenue. It was decided that both FBR and Board of Investment will get back on this point after completing their internal discussion.