New tools to boost the economy
The new measures to boost the economic growth of the country have been discussed by the government on Tuesday 15th of September. These include free trade zones and tax exemptions for research and innovation projects.
The country's law to reinforce economic growth consists of several benchmarks aimed at fostering the return of confidence and growth.
The first addresses free zones. "This tool should encourage companies to establish themselves in the areas where economic activity is underdeveloped, in return of tax advantages," said Christopher Gygès, member of the government in charge of the economy. “These will be implemented by government decree after request of the Provinces in order to provide sufficient agility to the measure.”
The free trade zones will have to meet several criteria defined for four different geographical areas - Grand Nouméa, VKP, islands and other municipalities. Those criteria are population density, the employment rate, aerial or maritime accessibility and the amount of tax revenue.
The government has also set the standards for research and innovation businesses eligible for a 30% tax reduction, up to a limit of 5 million F CFP per year. They relate to personnel, subcontracting and maintenance expenses linked to these operations. "This mechanism will improve research and innovation in the economic landscape of the territory, too often uncorrelated," said Christopher Gygès.