Hydrocarbon Exploration Incentives Act No. 10 of 2017

1. Short title

2. Interpretation

3. Customs Duties exemptions

4. Income Tax incentives

5. Value Added Tax incentives

6. No obligation under the National Insurance Act 136 Act 10 Hydrocarbon Exploration Incentives 2017 2017 Hydrocarbon Exploration Incentives Act 10 137 GRENADA ACT NO. 10 OF 2017 I assent, L.S. CÉCILE E. F. LA GRENADE 14th July, 2017. Governor-General. AN ACT to provide for incentives for investment in oil and gas exploration in the State of Grenada.. [21st July, 2107]. BE IT ENACTED by the Queen’s Most Excellent Majesty, by and with the advice and consent of the Senate and the House of Representatives and by the authority of the same as follows– Short title.

1.—(1) This Act may be cited as the HYDROCARBON EXPLORATION INCENTIVES ACT, 2017.

2. In this Act– Interpretation. “hydrocarbon exploration investment” means any business activity surrounding or involving exploration and scientific research to deter- mine– 138 Act 10 Hydrocarbon Exploration Incentives 2017 (a) the existence of a natural deposit of crude oil or natural gas in the State of Grenada; or (b) the quality, quantity or composition of crude oil or natural gas extracted from a natural deposit in the State of Grenada, and excludes an investment that generates any profit from a transaction involving crude oil or natural gas, or any product of crude oil or natural gas, extracted from the State of Grenada; “qualifying investment” means a hydrocarbon explo- ration investment exceeding $50 million Eastern Caribbean Currency. Customs Duties 3. For the purposes of the Customs Act, 2015, there shall exemptions. be a 100% waiver on customs duties on the following items– (a) machinery and equipment; (b) spare parts machinery and equipment; (c) a maximum of six motor vehicles; (d) networking elements and computer hardware and software; (e) building materials and infrastructure materials, for the purposes of a qualifying investment. Income Tax 4. The Income Tax Act, Chapter 149 shall not apply in Incentives. respect of any income accrued by a non-resident individual in respect of services rendered for the purposes of a quali- fying investment. 2017 Hydrocarbon Exploration Incentives Act 10 139

5. For the purposes of the Value Added Tax Act, Chapter Value Added Tax incentives. 333A, services rendered by a non-resident individual for the purposes of a qualifying investment shall be zero-rated.

6. For the avoidance of doubt, there is no obligation No obligation un- der the National under the National Insurance Act, Chapter 205 in respect Insurance Act. of an employee who renders services for the purposes of a qualifying investment if the employee is neither resident nor domicile in Grenada for the purposes of the National Insur- ance Act, Chapter 205. ____________ Passed by the House of Representatives this 8th day of June, 2017. WILLAN A. THOMPSON Clerk to the House of Representatives. ____________ Passed by the Senate this 27th day of June, 2017. WILLAN A. THOMPSON Clerk to the Senate. GRENADA PRINTED BY THE GOVERNMENT PRINTER, AT THE GOVERNMENT PRINTING OFFICE, ST. GEORGE’S 21/7/2017.