Timor-Leste approves draft investment incentive changes
The proposal would allow benefits lasting 25 years for projects recognised as being of major national interest, with renewal for an equal period.
Timor-Leste’s government has approved proposed changes to its Private Investment Law to attract large investments and strategically important reinvestment projects. The draft would introduce a separate incentive framework for projects judged to serve major national interests, the government said.
The amendment to Law No. 15/2017 of August 23 would retain the existing general framework for tax and customs incentives. Under the proposed special scheme, qualifying projects could receive benefits for 25 years, with renewal possible for the same duration.
Eligibility would require recognition through a Government Resolution under the Strategic Development Plan. The assessment would consider an investment’s size or nature, alongside its effects on the economy, society, the environment or technology.
The draft also provides more detailed conditions for special investment agreements and investors’ obligations. These cover hiring and vocational training for Timorese workers, buying from local suppliers, protecting the environment and supporting local communities.
Legal and fiscal stability guarantees would apply to the benefits awarded, while allowing public-interest rules to remain applicable. The proposal also strengthens project oversight and penalties for non-compliance, including possible termination of agreements and loss of incentives.
