RIGHTS AND INCENTIVES

BOI INCENTIVES

TAX INCENTIVESNON-TAX INCENTIVES
  • Exemption/reduction of import duties on machinery
  • Permit for foreign nationals to enter the Kingdom for the purpose of studying investment opportunities.
  • Reduction of import duties for raw or essential materials
  • Permit to bring into the Kingdom skilled workers and experts to work in investment promoted activities
  • Exemption of corporate income tax on the net profit and dividends derived from the promoted activity
  • Permit to own land
  • A 50 percent reduction of the corporate income tax
  • Permit to take out or remit money abroad in foreign currency
  • Double deduction from the costs of transportation, electricity and water supply

  • Additional 25 percent deduction of the costs of installation or construction of facilities

  • Exemption of import duty on raw or essential materials imported for use in produciton for export
 

 

The Board of Investment classifies 2 groups of activities, A and B, with incentives based on the importance of activities, as follows:

Group A : A1, A2, A3 and  A4 ,will obtain Tax Incentives and Non-Tax Incentives.
Group B : B1 and B2, will obtain only exemption of import duty on machinery and raw or essential material and Non-Tax Incentives.


The incentive as shown above, BOI call "Activity-based Incentives" which classified incentives based on importance of activities.
In order to attract and stimulate more investment or spending on activities that benefit the country or industry at large, the Board stipulates additional incentives based on the merits of the project (Merit-based Incentives).

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