The Niue Government is extremely interested in attracting foreign investment and Ministers and officials will consider submissions and support those which offer benefits to the country.
A current programme aims to encourage the tourism industry, with the initial aim of fully utilising seating capacity on current airline flights.
The incentives and concessions that may be granted are set out in the Schedule of the Niue Development Investment Act 1992. Cabinet will determine whether these are to be awarded, on application prior to commencement. Retrospective applications will not be considered. Investments that meet Niue’s investment priorities will be given favourable consideration. The incentives and concessions available are:
Where the activity is import substituting and protection is essential for the initial survival of the approved activity; or there is a threat of excessive or unreasonable trade competition by a foreign exporter into Niue of such a commodity.
CAPITAL EQUIPMENT CONCESSION
Concessions may be granted for capital items, where partial or full exemption from import duty may be granted to an enterprise on the importation of the plant, equipment, machinery or construction materials used. Alternatively, there may be a refund of duty paid.
RAW MATERIALS CONCESSION
Partial or full exemption from import duty may be granted to an enterprise in respect on any essential raw or processed materials used directly in any production or manufacturing process in an approved activity which is import substituting or export generating for any specified period of time not exceeding five years.
Tax concessions may be granted where any new or existing enterprise establishes a new activity in Niue, or where an activity already existing in Niue is materially expanded by any new or existing enterprise, provided Cabinet is satisfied that such establishment or expansion will contribute substantially to the economic development of Niue.
ALLOWABLE EXPENDITURE AND COST ON THE RECRUITMENT
The recruitment costs of an employee who is a local person ordinarily domiciled overseas may be granted as a deduction against the taxable income of the enterprise of the year it is incurred.
TRAINING OF LOCAL PERSONS
Where an enterprise employing an employee other than a local or an expatriate designates a local person to be trained to replace the expatriate employee in that position or job, up to 200 percent of the direct cost of training during each year may be claimed against the taxable income of the enterprise over the first three years of training.
Accelerated depreciation allowances of up to 200 percent of the rate specified in the Income Tax Act 1961 may be granted on plant, machinery, equipment, and permanent buildings used or to be used in any approved activity.
Subject to such conditions applying from time to time, residence and work permits maybe granted for periods up to three years to key personnel or employees.