BASRA, Iraq, Feb. 26, 2013 /PRNewswire-iReach/ -- BIOGH Ltd., the company behind the development of the new Basra Oil & Gas International Free Zone, today outlined on its website www.biogh.com, a list of the distinct advantages and benefits for its new oil and gas tenants.
BIOGH Ltd. has worked to successfully maximize the financial incentives and competitive advantages it can offer its new tenants and residents, by creating what is the only oil and gas Free Zone facility in Iraq. The dedicated oil and gas facility within the Khor Al-Zubair Free Zone was jointly established by BIOGH and the Free Zone Authority (FZA), an independent authority under Iraq's Ministry of Finance . This is the third such Free Zone to be created by the Authority and the only one dedicated to the oil and gas industry.
"The Free Zone is defined as a territory within the political borders of Iraq, but is treated as being outside its custom borders. Essentially all international trade to or from the free zone is exempt from import and export duties or custom controls, except for goods going into Iraq. All capital invested, as well as interest and income generated, by projects established in the Free Zone are exempt from taxes and fees throughout the lifetime of the project, including construction and start up phases." says Richard Cotton, Head of Marketing & Leasing at BIOGH.
There are significant and direct benefits to the tenants at the Basra Oil & Gas International Free Zone. All international imports and exports, including all imported machinery, equipment, raw materials and intermediate goods, will be exempted from customs duties. To further benefit the tenants, the project will have its own dedicated customs and administration facilities.
This translates into significant financial rewards for tenants including no capital gains or corporate taxes, and free repatriation of capital and profit. Profits from the Free Zone projects are not subject to the provisions of the Iraqi tax system. There are no foreign exchange restrictions and offshore banking is permitted. Furthermore foreign employees will be exempted from tax and will be allowed to repatriate their salary in full, and Iraqi employees' salaries will be 50% free of income taxation.
Jo Armitt, BIOGH, +44 20 8 944 6756, firstname.lastname@example.org
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