Project Solar City declared Maldives' first SEZ

President Dr Mohamed Muizzu yesterday declared that Project Solar City is the Maldives' first Special Economic Zone (SEZ).

During President Muizzu's ongoing State visit to Singapore, an investment agreement was signed with Canadian company Abaraxas for the establishment of the Project Solar City.

Project Solar City is designated as a High Technology Park, with authorization to conduct the following:

- 100 MW floating solar photovoltaic system

- Tourist facility with meetings, incentives, conferences and exhibitions (MICE)

- logistics, storage and industrial hub

- real estate development

In line with the presidential decree, capital goods and related imports for the zone’s infrastructure, development, and project implementation are exempt from import duties.

Additionally, the project will enjoy a 10 year exemption from GST, withholding tax, and taxes on profits derived from infrastructure development and other core activities.

Taxes will also be exempt on profits derived from establishment and operation of the solar photovoltaic system for the initial five years. For MICE and real estate development and operation, the tax exemption is set for two years.

Also included is tax exemption for 20 years on profit tax from operation of logistics, storage and industrial hub, as well as a 10 year exemption of GST and withholding tax.

Dividends for each shareholder will also be exempted from profit tax for 15 years.

The decree earmarks the lagoon new Kuda Bandos as the location of this SEZ.