10-year relief for developers: five-year income tax holiday for projects in SEZs

The Federal Board of Revenue (FBR) has announced corporate income tax holiday, for a period of five years, for commercial projects in the Special Economic Zones (SEZs). According to SRO 123(1) 2010 issued on Saturday, 10-year exemption from corporate income tax would be available to developers of the SEZ from the date of start of developmental activity. These decisions have been notified through the SRO.
Following is the text of the notification issued on Saturday: In exercise of the powers conferred by sub-section (2) of section 53 of the Income Tax Ordinance, 2001 (XLIX of 2001), the Federal Government is pleased to direct that the following further amendment shall be made in the Second Schedule to the said Ordinance namely:
In the aforesaid Schedule, in Part I, for clause (126E), the following shall be substituted, namely: "(126E) Corporate income tax holiday for a period of five years for projects from the date of start of commercial operations, and for developers of the Zone for a period of ten years from the date of start of developmental activity in the Special Economic Zones as announced by the Federal Government."