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What are the most common tax exemptions in tax free zone

Here under is a list of the most frequent exemptions met in Tax Free Zone or Trade free Zone:

Complete exemption from tax on imports and re exports.
Exemption of import duties
No taxes on the export of capital or the payment of dividends.
Full exemption or reduced income tax rates on earnings from re-export sales.

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Thanks to these exemptions companies that import and/or export goods can find a great economic advantage to have their activity based on a Tax Free Zone platform.

Case Study: the Colon Free zone Tax treatment in details:

Here under is the list of tax advantages that is offered by the Colon Free Zone based in the republic of Panama:

No sale tax, No production tax
Tax exemption on income derived from abroad
No tax or duty on imports to or reexports from the free zone to foreign countries
Dividends to offshore stockholders are untaxed
There is no capital gains tax on the sale of Free Zone assets that have been held at least 2 years.
There is no capital investment tax
There is no tax on any of the shipments sent to or from the Free Zone to any place in the world

Content by MercaTrade.com

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