| Tourism related Property Investments in Fiji |
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Tourist vessel investment allowance of 55 per
cent of the cost;
Projects for approved hotel building or
expansion may be entitled under the Hotels Aid Act
to receive an investment allowance of 55 per cent of
the approved cost to offset against chargeable
income.
The Hotel Aid Act’s Short Life Investment Package (SLIP) which will remain effective until 31st December 2005 is applicable to upmarket hotels and resorts. Concessions available under this SLIP package are as follows:
i)
carry forward losses of up to 8 years;
ii)
duty free import of all capital equipment,
machinery and plant for initial development, but
excluding motor vehicle and furniture;
iii)
no corporate tax on profits for 20 years for
capital investments exceeding $40 million;
iv)
no corporate tax on profits for 10 years for
capital investments exceeding $10 million but less
than $40 million;
v)
a claim of special deprecation allowance in
each of the fifteen years immediately succeeding the
year of income in which capital expenditure has
been incurred in the project, excluding land;
vi)
the tourist plant will be allowed to generate
its own electricity and sell the excess to the Fiji
Electricity Authority.
Projects that are operational also qualify for
concessionary duty rates under Code 235 of the
Customs Tariff Act, which is specifically for Hotel
and Resort development;
for more information on Tourism Related Incentives please visit the FTIB web site [ click here ]
