PROJECTS FOR TAX EXEMPTION
UNDER THE R & D TAX INCENTIVE SCHEME
The provision of a tax incentives for R&D projects has set the stage for innovations and increased productivity and efficiency in the manufacturing and service industries. Under this scheme, projects involved in research and developmental activitives qualify for General Comsumption Tax and Customs Duty exemptions for the purchasing of goods, equipment and chemicals
1. The R & D Tax Incentive Scheme is administered by the National Commission on Science and Technology (NCST) Secretariat and can be accessed by individuals as well as organizations.
2. There is no prescribed minimum or maximum value for projects to qualify.
3. Research projects will be considered as those which involve the application of scientific methods in studying materials or processes to establish conclusions or facts.
4. Development projects will be considered as those which involve the application of scientific methods for conducting pilot trials or for the production of prototypes.
5. Commercial production or processes will not be considered for exemption under this scheme.
6. Activities to be considered will include inter alia Environment Impact Assessments, Environment Impact Studies, prospecting, feasibility studies, pilot trials and product development work.
7. The Registration Certificate issued by the NCST will be valid for a two (2) year period.
8. Registration of projects will be subject to renewal at the end of a two (2) year period (from the date of registration).
9. Permission should be sought from the NCST if it becomes necessary to dispose the item(s) prior to the date of completion of the project.
10. The project will be subject to site visits by a representative of the NCST.
Criteria to Qualify
Projects to benefit under the R & D Tax Incentive Scheme will be involved in research at the basic or applied stage, OR:
- be involved in the development of a pilot process or of a prototype of a limited number of units.
- have stated objectives and a clearly defined implementation strategy.
- have an Execution Schedule which includes a projected schedule of equipment needs.
- be accompanied by a budget.
- be based at a verifiable location.
- have the necessary personnel, equipment and physical structure to conduct a project of the nature submitted.
1. Register project(s) with NCST. This involves the following :
a. Complete TI form supplied
b. Submit project Budget
c. Submit Project Summary
d. Pay Registration Fee
2. Within three (3) working days, a Certificate of Registration will
3. On importation of items, present the Customs Declaration form
(C79) and the shipping documents (with invoice and any
supporting documents regarding items being imported) to the
NCST Secretariat for approval.
The application will be processed within one to three working days.
Once approved, the processing fee of 2 % (to a maximum of
$20,000.00) of the CIF value of the import will be due.
5. On payment of the processing fee to the NCST, a release will be
provided for the exemption of customs duty and General
6. Present the Certificate of Registration together with the completed
TI Form (with Approval Stamp), the endorsed Customs Declaration
form (C79) and shipping documents to the Customs Officer for
delivery of goods.
Terms of Reference and Guidelines for Review Committee
Four of the following persons (including the NCST Secretariat representative) will be needed for conducting a review. Reviews for the registration of projects failing to meet one or more of the stated criteria, will be conducted once per month or as deemed necessary.
Reviews for the approval of imports will be conducted on as needed basis, particularly in cases where there are inconsistencies or lack of data. A report summarizing the month’s activities will be submitted to the Advisory Committee of the NCST on a monthly basis.
TAX INCENTIVE FORM
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