• The plan for a strong and prosperous economy

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The plan for a strong and prosperous economy

Reforms to ease doing business

  • One-stop shop SERVE (business registration centre) will help business register faster and more efficiently
  • Trade Invest will promote, inform, coordinate and facilitate private investment and export trade and tap into Timor-Leste’s potential market size
  • Trade facilitation reforms will reduce time and cost of importing and exporting goods:
    • The National Trade Facilitation Committee will help centralise and coordinate international trade in line with best practices
    • A strong consultation mechanism will be in place for the private sector. The laws require consultation with the private sector and membership of the private sector in the trade facilitation committee
    • A national single window for the import and export of goods and services will be implemented
    • Customs is being modernised and integrated with all agencies that impact on the trade sector to enhance efficiency and integrity
  • Congestion at ports will be eased to save time and money for importers and exporters
  • Infrastructure and equipment will be improved at land borders, sea ports and airports including road networks that access these facilities
  • A new export-promotion law has been designed to steer the economy towards exports and attract investors to this purpose through facilities, incentives, a dedicated administration, and with efficient procedures to enable and facilitate exports

Tax administration modernization to support business

  • Electronic payment systems together with tax and customs call centres will facilitate business
  • International accounting standards will enable foreign businesses to transact and report to parent companies using best practice accounting rules
  • Modern tax and customs administration structures will better deliver services
  • New tax IT systems will automate tax functions and enable electronic filing and portal access to tax payer information
  • Recruitment of technical staff and intensified training for human resources will improve service delivery

Fiscal reform

  • The aim of fiscal reform is to improve the tax and customs administrations, to reduce costs for businesses, to upgrade systems, and create predictability, efficiency, integrity and transparency
  • Fiscal reform is designed to ensure that budgets are sustainable and enable the petroleum fund to support public investment in critical infrastructure projects that help businesses and grow the economy for future generations

Tax reforms to support business

  • Introduce a Value-Added Tax (VAT) to make Timor-Leste a tax-free zone for exports and attract export-oriented
  • investment in manufacturing, industry and other sectors
  • Support the creation of jobs through generous employment and training credits
  • Encourage investment in Timor-Leste by changing tax structure from cash-flow base to standard accounting practices
  • Accelerated depreciation and unlimited loss carry-forwards to attract investment in long-term infrastructure projects
  • Low company and personal income tax rates relative to the ASEAN region to attract investors and VAT credit system to ensure that taxes don’t stick to businesses

Economic and commercial reform

  • The new revised companies law will support the registration of legal entities
  • A private investment law guarantees investors rights, equal treatment, right to access the court system, access to private property, guarantees against expropriation, gives the possibility to transfer funds outside of the country, rights to contract workers, and rights to intellectual property and confidentiality
  • A competition law is being established to ensure an even playing field for businesses
  • A bankruptcy and insolvency law is being developed
  • Priority sectors with strong potential to develop

    • Tourism
    • Agriculture
    • Forestry
    • Mining
    • Manufacturing
    • Industry
    • Oil and gas
    • Livestock

    Download the plan for strong and prosperous economy brochure:
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