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Special Development Areas Act

Thursday, July 26, 2018 | By Terra Luxury
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The Special Development Areas Act sets out
the designation of special development areas and provides relief for approved developers constructing or improving a building or structure in those areas and to persons financing such work (other than a commercial bank).

The activities that an approved developer may carry out are:

  1. Hotels including conference areas; 

  2. Residential complexes; 

  3. Commercial or industrial buildings including office 
complexes; 

  4. Other tourism facilities; 

  5. Water-based activities; 

  6. Tourism projects highlighting heritage and natural 
environment; 

  7. Arts and cultural investments; and 

  8. Agricultural-based activities. 


 

Exemptions & Allowances

  • Approved developers are exempt from:
  • Import duties and VAT on inputs for the construction or renovation of buildings and refurbishment of existing buildings. 

  • Charges on repatriation of interest (for a period of 10 years), 

  • Land tax on the improved value of the land 

  • Property transfer tax payable by vendors on the initial 
purchase of the property whether national or non-national 


 

Persons financing such work are exempt from: 


  •  Income tax on interest earned on loans to approved developer.

Allowances

  • An approved developer pays Corporate Income Tax (CIT) at the rate of 15% 

  • Is granted initial allowances of 40% and annual allowances of 6% on industrial buildings 

  • Is granted initial allowances of 20% and annual allowances of 4% on commercial buildings. 


 Defined Areas

The areas which are currently defined as development areas:

  1. Carlisle Bay Redevelopment area in St. Michael; 

  2. Speightstown in St. Peter; 

  3. St. Lawrence Gap in Christ Church; and 

  4. The Scotland District Conservation Area. 


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