Incentives under Special Technology Zones Act, 2021:

1.  Exemption from all taxes under the Income Tax Ordinance, 2001 including tax on profits and gains, turnover tax, withholding tax, capital gains tax, and tax on dividend income;
2.  Exemption from sales tax under the Sales Tax Act, 1990 on all sale transactions;
3.  Exemption from all duties under the Customs Act, 1969 on the import of capital goods including plant, machinery, equipment, materials, accessories, software;
4.  Exemption from property tax; and
5.  Freedome to open, maintain and operate foreign currency accounts, and import and repatriation of foreign currency to meet the requirements of investors, lenders, contractors, operators, insurers, vendors and advisors.

Specific Exemptions under Income Tax Ordinance, 2001:

a. For dividend income and long-term capital gains of any venture capital fund from investments in technology business in STZ for a period of ten years, starting from its license.

b. For profits and gains derived by (a) zone developer from operations of special technology zones for a period of ten years starting date of development agreement; and (b) technology business in STZ for a period of ten years from the date of its license.

c.   Against collection of advance tax on import and consumptionof the capital equipment by a zone developer and technology business in STZ.

Specific Exemptions under Sales Tax Act, 1990:

For import of plant, machinery, equipment and raw materials for consumption in STZ for zone developers and technology businesses.