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Cards by Country BHUTAN Index cards by country BHUTAN SPECIAL ECONOMIC ZONES Index cards realized by the University of Reims, France Conception: F. Bost Data collected by F. Bost and D. Messaoudi Map and layout: S. Piantoni WFZO Index cards - Bhutan Year of promulgation of the irst text Oicial Terms for Free Zones of law concerning the Free Zones Special Economic Zones 2010 Possibility to be established as Exact number of Free Zones Free Points 3 SEZs under installation No TABLE OF CONTENTS General information ........................................................................................................................................................................4 List of Special Economic Zone in project.................................................................................................................................5 Contacts ...............................................................................................................................................................................................6 Free Zones Web sites selection ...................................................................................................................................................6 2 WFZO Index cards - Bhutan Kangmar Gudui CHINA Comai Luozha • Gala Gyeru Cona Düna Gasa Lachung Pagri Lhuntse Punakha Tawang Jakar Xarsingma Thimphu Phobji Trongsa • Paro Ha Drametse Mongar Zhemgang Khaling Tsimasham Daga Damphu 01 02 Mal Bazaar Jaigaon Gelephu 03 Samtse Birpara Samdrup Jongkhar Mainaguri Goreswar Alipur Duar INDIA Sarupeta Jalpaiguri Mangaldoi Kokrajhar BANGLADESH FREE ZONES IN BHUTAN 01 25 km International borders Elevations (meters) Cities 0 200 500 1000 Free Zones 01 - Dhamdum SEZ 02 - Jigmeling SEZ 03 - Motanga SEZ © Sébastien Piantoni - Conception: François Bost EA 2076 Habiter - University of Reims - 2017 Map Projection: WGS 1984 3 WFZO Index cards - Bhutan GENERAL INFORMATION Oicial deinition “A SEZ is an area where any goods imported are regarded, insofar as import duty and taxes are concerned, as being outside the customs territory. The enterprises in the SEZ shall be export oriented. Sale of products/services in the domestic tarif area by enterprises established in SEZ shall be subject to payment of applicable taxes and duties. SEZs can an Export Processing Zone, Free Trade Zone, IT Park, Technology Park, Education Park, Agricultural Free Zone, Tourism Development Zone etc., subject, however, to the potential and commitment to fulil the speciic requirements prescribed for the type of SEZ”. http://www.gnhc.gov.bt/wp-content/uploads/2011/05/Business_Infrastructure_Policy-_2014_1.pdf 3 Special Economic Zones shall be created to encourage manufacturing and exports. They are actually under installa- tion. The dates of opening to the investors are not yet known. Number of free 3 actually under installation zones Main sectors of The special economic zone at Jigmeling will have diferent kinds of industries and re- activity creational facilities, among others. Number of active companies in Free Zones Total job numbers The special economic zone at Jigmeling is expected to create around 25,000 jobs accor- ding to the Chief Executive oicer of DHI Infra, Dorji Namgay. http://www.bbs.bt/news/?p=33318 Distribution of investors Exports and sales Free zones contri- bution to the na- tional economy Corporate Tax and Additional Fiscal Incentives for Developers: Incentives • Exemption from customs duty and sales tax on imports of capital goods, raw mate- rials, consumables, spares, etc. used in the production processes of the business; • Exemption from excise duty and sales tax on procurement of capital goods, raw materials, consumables, spares etc. from domestic market used in the production processes of the business; • Corporate income tax holiday for a Period up to 10 years; • Exemption from foreign exchange controls on payments for: a) proits, dividends, loans, royalties, fees and charges relating to activities regis- tered in the zones; b) raw materials, intermediate goods, tools and spares, supplies, construction equipment and building materials; and, c) capital transactions. Additional Fiscal Incentives for Enterprises in Special Economic Zones: • Exemption from customs duty and sales tax on imports of capital goods, raw mate- rials, consumables, spares, etc. used in the production processes of the business; • Exemption from excise duty and sales tax on procurement of capital goods, raw • materials, consumables, spares etc. from domestic market used in the • production processes of the business; • Corporate income tax holiday for a period up to 10 years; 4 WFZO Index cards - Bhutan • Exemption from foreign exchange controls on payments for: a) proits, dividends, loans, royalties, fees and charges relating to activities regis- tered in the zones; b) raw materials, intermediate goods, tools and spares, supplies, construction equipment and building materials; and, c) capital transactions Non-iscal Incentives for the Developers: • One operation license issued by regulatory agency to set up operations of Business Infrastructure ; • Fast track project approval and licensing or rejection thereof within 45 days; • Liberalized foreign exchange regime for easy repatriation of capital & proits, access to foreign currency accounts, domestic and external • borrowing; • On site customs documentation and inspection by Customs. Resident Customs oice for on site customs documentation and clearance in the SEZs; • Investment conditions by foreigners as per FDI policy, 2010; • One Stop Facilitation service for facilitation and aftercare http://www.gnhc.gov.bt/wp-content/uploads/2011/05/Business_Infrastructure_Poli- cy-_2014_1.pdf Free Zone law Special Economic Zones Policy By 2010/11. LIST OF SPECIAL ECONOMIC ZONE IN PROJECT 1 - Dhamdum SEZ Located at a distance of about 2 kilometers from the Samtse Township adjoining the Location Dhamdum riverbed. Surface Area 350 acres. Ministry of Finance Tashichhodzong - P.O Box117 Contacts Tel.: +975-2-322223 / 322514 / 322271 / 327763 / 322285 Fax: +975-2-323154 Observations 2 - Jigmeling SEZ Location Located 17 kms from Gelephu along the Gelephu-Sarpang highway 733 acres. About 40 acres of private land belonging to 28 households were acquired for the project Surface Area apart from the government land. http://www.bbs.bt/news/?p=33318 Ministry of Finance Tashichhodzong - P.O Box117 Contacts Tel.: +975-2-322223 / 322514 / 322271 / 327763 / 322285 Fax: +975-2-323154 Observations The Special economic zone will be the biggest special economic zone in the country. 5 WFZO Index cards - Bhutan 3 - Motanga SEZ Located at about 7 Km to the east of Samdrup Jongkhar town and falls under Dewa- Location thang Gewog. Surface Area 145.52 acres. Ministry of Finance Tashichhodzong - P.O Box117 Contacts Tel.: +975-2-322223 / 322514 / 322271 / 327763 / 322285 Fax: +975-2-323154 Observations CONTACTS Ministry of Finance Tashichhodzong P.O Box117 Tel.: +975-2-322223 / 322514 / 322271 / 327763 / 322285 Fax: +975-2-323154 Druk Holding and Investments Limited Thimphu Bhutan P.O. Box #: 1127 Email: [email protected] Tel.: 00975-02-336257 / 336258 Fax: 00975-02-336259 FREE ZONES WEB SITES SELECTION • http://www.gnhc.gov.bt/wp-content/uploads/2011/05/Business_Infrastructure_Policy-_2014_1.pdf • http://rtm.gnhc.gov.bt/wp-content/uploads/2013/10/EDP.pdf • http://www.dhiinfra.bt/?page_id=2404 • http://www.mof.gov.bt/ • http://www.gnhc.gov.bt/wp-content/uploads/2012/04/EDP.pdf • http://thebhutanese.bt/bhutans-biggest-industrial-sez-opens-for-bidders/ 6.
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