INDUSTRIAL INCENTIVES ACT

ARRANGEMENT OF SECTIONS

   1   Short title

 

PART I
General

   2   Interpretation

   3   Declaration of approved product

   4   Declaration of approved enterprises

   5   Applications for approval

   6   Objections to proposals to approve a product or an enterprise

   7   Limitations on power of Minister to approve a product or a company

   8   Minister to have an absolute discretion to refuse approval

 

PART II
Income Tax Benefits

   9   Interpretation

   10   Alternative income tax benefits

   11   First option

   12   Second option

   13   Dividends

   14   Order under section 4 may be revoked

 

PART III
Benefits in respect of customs duties and general consumption tax

   15   Relief from customs duties and tax

   16   Special provisions relating to articles imported free of customs duty and tax

   17   Restriction upon disposition of articles imported free of customs duty and tax

   18   Date when an approve enterprise ceases to be an approved enterprise for the purposes of Part III

   19   Restriction on use of factory premises

 

PART IV
Miscellaneous

   20   Savings

   21   Penalties

   22   Power of Commissioner of Income Tax to refuse to treat certain receipts and payments as received or made in a particular year of assessment

   23   Commissioner of Income Tax empowered to issue certificates regarding benefits enjoyed under this Act

   24   Regulations

 

PART V
Modification of this Act in relation to items specified in the Third Schedule

   25   Modification of this Act in relation to certain items

   26   Amendment of Third Schedule

 

PART VI
Incentives applicable to products declared on or after 28th May 1963

   27   Interpretation of this Part

   28   Application of this Part

   29   Tax relief in relation to manufacture of new product

      SCHEDULES

 

THE INDUSTRIAL INCENTIVES ACT

[Date of Commencement: 23rd August, 1956]

Laws
45 of 1956,
12 of 1960.

Acts
5 of 1965,
4 of 1967,
23 of 1972,
56 of 1974,
12 of 1985,
16 of 1991.

LNs
369/1971,
370/1971,
105/1972,
55/1973,
165/1999.

1   Short title

   This Act may be cited as the Industrial Incentives Act.

PART I
General (sections 2-8)

2   Interpretation

   In this Act, unless the context otherwise requires-

[56/1974 s 2.]

   "the Agreement" means the Agreement done at Georgetown, Guyana, on the 1st day of June, 1973, and establishing a Scheme, to be known as the "Harmonisation of Fiscal Incentives to Industry Scheme", for implementation by such countries belonging to the Caribbean region as participate in the Scheme under that Agreement;

   "annual allowances", "chargeable income", "initial allowances" and "year of assessment" shall have the same meanings as in the Income Tax Act, and where pursuant to this Act any annual allowance is made, such allowance shall be made subject to and in accordance with the provisions of that Act;

[4/1967 s 2.]

   "approved enterprise" means a company approved by the Minister under section 4 for the manufacture of an approved product;

   "approved product" means a product of manufacture approved by the Minister under section 3 for manufacture by an approved enterprise;

   "benefit" means the relief in regard to income tax, customs duties or general consumption tax enjoyed by an approved enterprise in virtue of this Act;

[21/1991 s 64.]

   "Commissioner" [Deleted by LN 165/1999.]

   "company" means any company incorporated or registered under any law in force in the Island and any company which, though incorporated or registered outside the Island, carries on business or has an office or place of business therein;

   "date of production" means the date declared pursuant to subsection (2) of section 4:

   "factory" includes a place or an establishment at or in which an item specified in the Third Schedule is produced;

[5/1965 s 2.]

   "manufacture" includes-

   (a)   the production by any method of an item specified in the Third Schedule;

   (b)   preparation for sale;

   "Minister" means the Minister responsible for industrial development.

3   Declaration of approved product

   (1) Subject to the provisions of sections 6 and 7, the Minister may, by order' declare that a product of manufacture shall be an approved product for the purpose of this Act if he is satisfied that the manufacture of the product would-

   (a)   be of benefit to the Island, both economic and non-economic considerations being taken into account; and

   (b)   have a beneficial effect on employment both in numbers and in gross wages.

   (2) An order may be made under subsection (1) in respect of a product which is being manufactured in the Island at the date of the order.

   (3) The Minister, before declaring under subsection (1) that a product of manufacture shall be an approved product for the purpose of this Act, shall also have regard to the following considerations-

   (a)   the effect which approval would have on existing industries;

   (b)   whether manufacture of the product would utilize raw materials or skill available in the Island;

   (c)   whether the existing capacity for manufacture of the product is sufficient to meet the demand for the product;

   (d)   the element of risk involved in establishing a successful manufacture of the product.

   (4) When approving a product for the purposes of this Act, the Minister may, by the same order, declare that all approved enterprises manufacturing the approved product shall be entitled either to one hundred per centum or to fifty per centum of the benefits of this Act, that is to say, in regard to relief from income tax relief in respect of the whole of the chargeable income of the company or of one-half of the chargeable income of the company (as the ease may be) which, but for the provisions of this Act, would be chargeable with income tax and, in regard to customs duty, or general consumption tax, either the whole or one-half of the duty or tax, as the case may be.

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