SMEs Get Tax Break on Export Duties

SMEs that in the prior calendar year did not export goods that have an aggregate FOB value above USD 3,000,000 or did not export goods at all may apply for this tax break.

Goods that may be tax-exempt under the new measure, i.e. Presidential Decree No. 302/2021, are listed in its Schedule, which includes goods from the fishing, chemical, wood and electronics industries, among others.

This measure is a full exemption on export duties applicable to the first USD 500,000 of FOB value of exported goods in the calendar year. On the surplus of that amount and up to a FOB value of no more than USD 1,000,000, the exemption mounts to 50% of the applicable rate of export duties based on the tariff code of each good.

This exemption does not apply to exports carried out on behalf of third parties.