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CNMI offers firms new tax perks
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Posted on Mar 20 2001
The CNMI government is finalizing drafting of regulations that will pave the road for the implementation of a new set of tax incentives contained in a recently-signed law.
The new incentives have been identified in fresh attempts by the government to revitalize the local economy by spurring growth in the private sector.
The incentives can result in a 100 percent abatement of all local taxes and a 95 percent rebate of federal taxes for new businesses for up to 25 years.
These regulations, which will accompany the Economic Incentive Act of 2000, will be released soon, according to officials.
The Economic Incentive Act of 2000 provides substantial tax incentives to new investments or those seeking to expand existing facilities in the Northern Marianas.
The tax incentives are remarkable and reflect the commonwealth’s commitment to work in cooperation with developers who wish to expand into the region.
Aside from a string of inquiries and a group of Korean businessmen wishing to pour in $25-million for shooting range facilities on the islands, foreign investors have shown little interest in putting up significant amount of money into the Commonwealth since 1997.
A little over 10 foreign businesses have so far agreed to pump in combined investments of less than $10 million between February 1997 and middle of last year, according to the Foreign Investment Office of the commerce department.
