Investment Incentives

In accordance with section 16 of the IL, investments in the following sectors and geographical areas are eligible for tax, accounting and land incentives:

Encouraged investment sectors include:

• high-tech activities, industrial products which support high technology; and research and development activities;
• production of new materials, new energy, clean energy or renewable energy, production of products with an added value of 30% or more, and energy-saving products;
• production of electronics, prioritized mechanical products, agricultural machinery, automobiles, automobile parts; and shipbuilding;
• production of industrial products which support production of garments and textiles or leather products;
• production of products of information technology, software and digital content;
• breeding, growing and processing agricultural, forestry and aquaculture products; afforestation and protection of forests; salt production; fishing and services which support fishing; creation of plant and animal varieties and production of products of biological technology;
• collection, processing, reprocessing or reuse of refuse;
• development, operation and management of infrastructure facilities; and development of public transportation in urban areas;
• pre-school education, general education and vocational education;
• medical consultation and treatment; production of medicines, raw materials for production of medicines, principal medicines, essential medicines and medicines for prevention and treatment of social diseases, vaccines, medical biological products, medicines from pharmaceutical materials, oriental medicines; and scientific research in relation to the technology of preparation or biological technology for production of new medicines;
• facilities for training and competition of sports or physical practice for the disabled or for professional sportsmen; protection and promotion of the value of cultural heritage;
• centres for geriatrics, psychiatry or treatment of patients exposed to Agent Orange, and centres for care of the old, disabled, orphans or street children without support;
• people’s credit funds and microfinance institutions.

Encouraged geographical areas include

• areas with difficult or especially difficult socio-economic conditions;
• industrial zones, export processing zones, high-tech zones and economic zones.

Tax incentives are available for encouraged geographical areas including industrial zones, export processing zones, high-tech zones and economic zones.

Bonded warehouses may be exempt from excise duties.