VIPA reforms conditions of foreign investment in Vanuatu

The Vanuatu Investment Promotion Authority (VIPA) announced the latest changes and reforms to its current Foreign Investment Approval regime, effective from 1 January 2016, including: 

  • The removal of the minimum capital requirement (of 5 million vatu – approximately US$50,000) for a new investment approval application
  • Increased application fees:
    • VT120,000 for an application for a new foreign investment approval certificate which is valid for 12 months
    • VT60,000 for an application for an annual certificate renewal
    • VT60,000 for an application for an investment variation

 

The Authority also announced other reforms which have been proposed and are currently under government approval. These are:

  • An investment levy of 1% on annual returns to be applied to business investments after 6 years of being approved foreign investments, with a “levy-break” year on the 10th year and every five years thereafter. The first 5 years will be exempted from the levy payment
  • VIPA’s support to new investors (on a case-by-case basis) to negotiate duty exemptions with relevant government departments

Timeline for implementing the proposed reforms was not indicated. 

 

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