To encourage investments in the healthcare and pharmaceutical sectors, NIPC has advised that several activities in these sectors qualify for the three- to five-year company income tax holiday it administers under the Pioneer Status Incentive (PSI) Scheme.
Qualifying activities include:
Manufacture of pharmaceuticals and medical chemicals — including medicinal active substances, antibiotics, vitamins, vaccines, antisera, blood products, medical diagnostic preparations, biotech pharmaceuticals, and medical dressings.
Manufacture of irradiation, electromedical and electrotherapeutic equipment — including CT scanners, PET scanners, MRI equipment, medical ultrasound, electrocardiographs, laser equipment, pacemakers, and hearing aids.
Manufacture of medical and dental equipment and supplies — including surgical instruments, dental materials, bone reconstruction cements, laboratory sterilisers, orthopaedic and prosthetic devices, syringes, catheters, and medical thermometers.
Construction and operation of health-supporting structures — including specialised hospitals, diagnostic centres, laboratories, and medical cities.
Qualifying activities also span other major sectors of the economy, including agriculture, mining and quarrying, manufacturing, electricity and gas supply, waste management, construction, trade, and information and communication. A full list of qualifying activities is available in the Gazetted List of Pioneer Industries and Products on the NIPC website.
The PSI was established by the Industrial Development (Income Tax Relief) Act of 1971 and grants qualifying industries and products relief from company income tax for an initial period of three years, extendable for one or two additional years.
