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Call Center group holds out for enhanced tax package
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Posted on Jan 07 2006
The proponent of a call center operation on Saipan still hopes to get a better tax incentive package from the government in view of the entry of a new administration.
We Manage Calls Inc. co-owner Erick Van Der Maas said he is trying to get an appointment with the team of Gov.-elect Benigno R. Fitial to present the project.
The company is not satisfied with the Commonwealth Development Authority’s approval of $2-million tax incentive over 10 years.
“I would like to talk with the new governor for another chance to review our proposal,” said Van Der Maas in an interview.
We Manage Calls want to invest $2 million for the call center project, which it estimates to generate a cash flow of $98 million over 10 years.
The company wanted to begin the operations with 30 people in December 2005. Based on its plan, the business aims to employ up to 200 people after two years.
The company applied for exemption from the excise tax in the first three years, Business Gross Receipt Tax for five years, and corporate tax for 10 years, which, when combined, would exceed $2 million.
Van Der Maas said that his Los Angeles business partner has proposed to move the project to Guam if it would not be able to get its requested tax incentive in the CNMI.
“At this moment, we’re reviewing [plans] to go to Guam,” said Van Der Maas.
We Manage Calls applied for tax exemptions for 10 years under the government’s Qualifying Certificate program in the middle of 2005. CDA approved the $2 million incentive in late November. Gov. Juan N. Babauta signed the CDA’s recommendation before Christmas.
CDA administers the government’s qualifying certificate program, which grants various tax incentives of up to 100 percent in tax rebates for 25 years to investors who build, expand, and operate commercial projects in the CNMI.
A call center business refers to reservation centers, help desks, information lines or customer service centers.
