Investment Incentives

All investment incentives (but no special tax incentives) are available to foreign-participation enterprises.

Several tax and nontax incentives are available for investment in manufacturing facilities. In addition, there are special incentives for export-oriented industries, including tax exemption on export profits and duty-free imports.

Investment is encouraged in sophisticated technology or export-oriented industries and in export-processing zones. Incentives for and attitudes to investors vary somewhat from state to state. New projects other than in nonpolluting industries are generally required to be located at least 25 kilometers outside the urban limits of cities with a population over 1 million according to the 1991 Census, or they may be located in more proximate designated industrial areas.