Lebanon Businessnews News

Incentives for ICT
New guidelines identify technology
projects eligible for tax incentives
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A list of new guidelines was set to identify information and communication technology (ICT) sector projects that qualify for tax incentives offered through the Investment Development Authority of Lebanon (IDAL). ICT projects are fully exempt from income tax and tax on dividends for the first ten years period regardless of their geographic location.

A Cabinet decree issued August 17, identified those activities classified under the technology sector. A project is classified as a technology project if it allocates a minimum of three percent of its annual sales to research and development. At least 60 percent of an enterprise’s labor force should have higher education degrees equivalent to a Bachelor of Science or higher. To be classified as an ICT project, an enterprise’s activity should fall under one of the following four categories: ICT manufacturing, medical technologies, clean technologies, research and development on natural sciences and engineering.

ICT manufacturing includes the manufacture of computers and their relevant parts, communication equipment, fiber optic cables, electrical wires, consumer electronics, electric generators and transformers, and optical and photographic equipment.

Medical technologies include irradiation and electrotherapeutic equipment, and medical and dental instruments and supplies.

Clean technology encompasses the manufacturing of products and systems that reduce the environmental impact of human activity, mainly in consumer products, and transportation. It also includes the manufacturing of renewable energy systems.

Research and development includes projects that aim to achieve advancements in science and technology in the fields of natural sciences and engineering.
Reported by Hanadi Chami
Date Posted: Sep 17, 2012
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