President ratifies amendment to SEZ Act granting investment concessions
The amendment aims to establish the conditions and criteria for designating SEZs as sustainable townships.
President Mohamed Muizzu on Monday ratified the First Amendment to the Special Economic Zones (SEZ) Act, which introduces new investment concessions and regulatory provisions for SEZ developments.
The bill was submitted by PNC Parliamentary Group Deputy Leader and Baarah MP Ibrahim Shujau on behalf of the government. Parliament fast-tracked the legislative process, with the relevant committee completing its review in a single day before passing the bill on Wednesday.
The amendment aims to establish the conditions and criteria for designating SEZs as sustainable townships and to define the framework for large-scale real estate and integrated tourism developments.
Key Provisions of the Amendment:
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Minimum investment requirement of USD 500 million for SEZ projects.
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Development of integrated tourism zones offering a range of luxury services and residential facilities.
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Mandatory self-sufficiency in energy generation and waste management systems.
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At least 60% of operational energy to be sourced from renewable sources.
Tax Concessions for Investors:
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Reduced property transaction tax for strata-based villa sales: 1% on the first sale, 2% on the second, and 4% on the third and subsequent transactions.
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Income tax relief: 5% for the first 10 years, 10% up to 20 years, and the standard rate thereafter.
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Exemption from import duty on capital goods used in SEZ developments.
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Exemption from tax on gains from the sale of residential villas or rooms developed within the zones.
The amendment came into effect upon ratification by the President and publication in the Government Gazette.
