Investment Tax Credits Investment credits are provided by the regulation of the Council of Ministers concerning new investment tax deductions. The relief allows for the deduction of all or part of investment outlays from income tax. The maximum deduction cannot exceed in any given year 25 percent of the total investment cost.
Investment are furthermore available to companies operating in high-unemployment areas.
Investors may also obtain tax credits related to exports. If exports earnings account for more then 50 percent of total sales or if revenue derived from export in any given year exceeds ECU 8 million, then taxpayers may deduct up to 50 percent of their investment expenses from taxable revenue. This effectively lowers the corporate tax rate from 40 percent to 30 percent. Taxpayers who invested and installed machines connected with implementation of licenses and patents can deduct up to 50 percent of the expenditures from the taxable revenue, and pay a corporate tax rate of 20 percent. A 10-year exemption from real estate taxes as well as from VAT liability for goods manufactured in the zone and then sold in the domestic market.