Investment Incentives
The Internal Revenue Commission (IRC) administers a number of different tax incentives. Most of these are available to any businessperson and take the form of exemptions from company income tax or deferment of income tax liabilities.

The incentives that involve some sort of exemption from company income tax include:

Export income exemption.

Rural development incentive.

Double deduction for export market development costs.

Staff training double deduction.

150 per cent tax deduction for the provision of extension services in Agriculture and for scientific research in Agriculture, and these exemptions are also available to partnerships and sole traders (except number 6 which is only for companies).

Special tax rate of 20 per cent as against 30 per cent for major agriculture projects started in 2004- 2006. The incentives that involve a deferment of tax liability are the provisions that relate to the tax treatment of depreciation and include:

Initial year accelerated depreciation provision

Flexible depreciation for agriculture and fishing

Additional depreciation of industrial plant.

Solar heating deduction.

Depreciation allowance for improvements made to existing plant for the purpose of fuel conservation.

Depreciation allowance for the cost of conversion of existing oil-fired plant to non oil-fired plant.

Depreciation allowance for the acquisition of non oil-fired plant. The other current incentives are:

Wage subsidy.

Training levy (aimed at promoting employment), and;

Deduction of capital expenses by primary industry.

These 16 incentives have the effect of promoting a number of different objectives, including:

export promotion;

employment growth;

aiding the development of new industries;

influencing the spatial distribution of economic activity in favour of less developed areas of the country;

increasing training;

aiding investment;

promoting fuel efficiency and environmental conservation, and;

aiding primary production