Based on the 2002 Investment Incentive Code, for a period of not more than six years starting from the date of approval of their application, registered investors are entitled to exemptions from gross sales or receipts earned during the preceding year.
From the first year to the third year, the exemption is 100-percent.
On the fourth year it is 75-percent, 50-percent on the fifth year and 25-percent on the sixth year.
San Juan informed the committee that in the proposed amendment, businesses will be entitled to fiscal incentives for only three to four years, wherein they will be granted a 100-percent exemption from payment of gross sales or receipts.
The proposed incentive ordinance also grants exemption from Real Property Tax on equipment and land improvements for basic tax only.