Incentives to Import and Export Activities
 
 

 

Incentives to Import and Export Activities: Industrial & Free Zones & the Law on the Encouragement of Investment

 

Industrial Estates and Free Zones (IE/FZs)

The industrial estates in the WBGS are currently being developed by the private sector and offer infrastructure and specialized business services to both foreign and local companies. The free zones have extra-territorial customs and duty status. The latter were created to attract local and foreign export-oriented investment activities.

 

The Gaza Industrial Estate (GIE)

The Gaza Industrial Estate is a free zone located in the Gaza Strip. It started operating in December 1998, offering industrial infrastructure services and the "one-stop-shopping". The "one-stop-shopping" is a series of facilities offered by the Palestinian Industrial Estates and Free Zone Authority (PIEFZA) to companies planning to operate in the Gaza free zone. Through this mechanism, all necessary documents for investors to start and run their businesses (such as official registration, permits, licenses and related documentation) are all available in one location.

 

The following incentives and exemptions are offered by the Palestinian National Authority to all IE and FZs, including the Gaza Industrial Estate.

 

Incentives and Exemptions

All investment incentives offered to businesses located in the Palestinian IE and FZs are incorporated in the " Law for Industrial Estates and Free Zones " and the " Law on the Encouragement of Investment ".  All incentives, exemptions and privileges are offered to investors regardless of nationality or citizenship.

 

Income Tax Exemptions

The "Law on the Encouragement of Investment" fully exempts investors from the income tax according to the amount and the length of the investment, for a variable number of years. Moreover, the law allows free transfers of foreign currency and repatriation of income generated in the WBGS. 

 

Fixed Asset Exemptions

Goods, materials, ingredients, machines and foreign vehicles imported into the IE/FZs or for the consumption and use of staff working there, are exempt from customs duty, related fees and import licenses. In particular, equipment and heavy machinery and their imported spare parts are exempted.

Source: Ministry of National Economy "The Palestinian Import Export Guide"