Special Development Areas Act
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:
- Hotels including conference areas;
- Residential complexes;
- Commercial or industrial buildings including office complexes;
- Other tourism facilities;
- Water-based activities;
- Tourism projects highlighting heritage and natural environment;
- Arts and cultural investments; and
- 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.
- 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.
The areas which are currently defined as development areas:
- Carlisle Bay Redevelopment area in St. Michael;
- Speightstown in St. Peter;
- St. Lawrence Gap in Christ Church; and
- The Scotland District Conservation Area.