Incentives for Business Activities

The latest Foreign Investment Industrial Guidance Catalog came into effect on January 30, 2012.  It classifies various industries into the four groups which are Encouraged, Permitted, Restricted and Prohibited which has subsequent effects on foreign firms wishing to operate in such sectors.

Encouraged industries generally receive favorable tax treatment whilst those in the Permitted category are treated on a quite neutral basis. If an industry is restricted, foreign investment is usually limited to a minority shareholding in a joint venture while Prohibited industries cannot have any form of foreign investment at all.