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Brief on STZA

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38 views

Brief on STZA

Uploaded by

Aqib Sheikh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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SPECIAL TECHNOLOGY ZONES AUTHORITY (STZA)

BRIEF
SPECIAL TECHNOLOGY ZONES AUTHORITY (STZA)
Prepared by:
PKF F.R.A.N.T.S CHARTERED ACCOUNTANTS

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SPECIAL TECHNOLOGY ZONES AUTHORITY (STZA)

Special Technology Zones Authority (STZA)

DEFINITION
STZA is an autonomous body of the Government of Pakistan established to build the scientific and technological ecosystem through
the development of zones & acceleration of technology development in the country. Based on the Triple Helix Model of innovation,
the authority brings together technology Industry, Academia & Government services for national socioeconomic development & lays
the foundation of Pakistan’s knowledge economy of the future.

As per the Special Technology Zones Authority Act, 2021;


“Zone” means a particular type or class of zone, which may be geographical or virtual, new or existing or expansion of an existing zone,
as approved and notified by the Authority under the rules, including, but not limited to special technology zones, information
technology parks, high-tech industrial areas, software technology parks, hardware technology parks, technology export zones, free
technology zones, science and technology parks, information technology zones, science and technology zones, R&D zones,
opportunity zones, innovation zones, technology development zones, knowledge parks, smart cities, knowledge cities, technology
incubation zones or any sector zones, which are developed for the development, promotion and proliferation of technology,
particularly all the latest cutting edge technologies and may require technological intervention such as biotech, chemical
technologies, agri-tech, fintech, robotics, nanotech, edtech, etc. and other zones with any combination or combinations of the
aforesaid fields.

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SPECIAL TECHNOLOGY ZONES AUTHORITY (STZA)

STZA Notified Zones

Readily Available Infrastructure Infrastructure Under


(Operational) Construction

Rawalpindi Faisalabad Karachi Lahore Karachi

University of Lahore Knowledge Pakistan Maritime


NASTP – ALPHA NASTP-SIERRA S&T Park
Agriculture Park
20 acres, 400,000 SFT 279,000 SFT 1 Acre, 350,000 SFT
38.29 Acres 800 acres

Haripur Islamabad Islamabad Haripur

PAF-IAST Islamabad Pakistan Digital City


New State Life
20 acres, 140,000 SFT Technopolis 11 acres
Tower
140 acres
300,000 SFT

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SPECIAL TECHNOLOGY ZONES AUTHORITY (STZA)

Tax Exemptions

Levy Reference of Law Nature of exemption /tax concession Period of Exemption


Clause 126EA of Part 1 of 2 nd
10 Years from the date of
Exemption from Income Taxes on Profit and
Income Tax Schedule to the Income Tax issuance of license by the
Gains
Ordinance, 2001 STZA
Clause 11A (xiii) of Part IV of 2nd 10 Years from the date of
Income Tax Schedule to the Income Tax Exemption from Minimum Tax on turnover issuance of license by the
Ordinance, 2001 STZA
10 Years from the date of
Under section 113C (8) of Income
Income Tax Exemption from Alternative Corporate Tax issuance of license by the
Tax Ordinance, 2001
STZA
Exemption from advance collection of tax
Clause 60DA of Part IV of 2nd 10 Years from the date of
under section 148 of the Income Tax
Income Tax Schedule to the Income Tax issuance of license by the
Ordinance ,2001 on import of capital
Ordinance, 2001 STZA
equipment
Exemption from Customs Duties on import of
Clause 4(ii) at PCT Code 9917 of
Custom capital goods including plant, machinery, 10 Years from the date of
Chapter 1 to 99 of the 1st Schedule
Duty hardware, equipment, and software as license
to the Customs Act,1969
defined in STZA Act, 2021
Exemption from Sales Tax on import of plant,
Clause 161 of Table-1 of the 6th 10 Years from the date of
Sales Tax machinery, equipment, and raw material for
Schedule to the Sales Tax Act,1990 license
consumption of these items within STZs

Banking Benefits:

Special Foreign Exchange Account as per Special Foreign Exchange Regulations for Special Technology Zones (STZs) issued by State
Bank of Pakistan on Dec 11, 2020 (Paragraph 9A of Chapter 6 of Foreign Exchange Manual of SBP).

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SPECIAL TECHNOLOGY ZONES AUTHORITY (STZA)

One Window Facility

One Window Facility means a physical or an information


and communication technology (ICT) facility,
comprising of relevant entities of Federal, Provincial or
Local Governments, for facilitation of the zone
developer and zone enterprises to lodge standardized
information and documents with a single-entry point to
fulfill the requirements under the Act, rules or
regulations including the establishment, development,
execution, operations, functioning and management of
zones.

Admission Criteria

Criteria for Zone Development:

• Minimum Size: STZ requires a minimum size of 5 acres or 250,000 square feet of contiguous land for development.
• Development Objective: STZ should align with economic activities like export-led growth, FDI, technology transfer, and high-
tech skills development.
• Banned Products: STZ must not target banned technologies or products in Pakistan.
• Conformity: Zone applications must adhere to applicable documents and regulations.
• Timely Start: The zone developer must begin construction within six months of signing the development agreement and
complete the zone within the agreed time.
• Legal Incorporation: The zone developer should be a body incorporated under Pakistan's laws.
• Compliance: The zone developer's memorandum and articles must align with the zone's objectives.

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SPECIAL TECHNOLOGY ZONES AUTHORITY (STZA)

• Land Ownership: The land must be legally vested or leased to the zone developer.
• Land Use: The land must only be used for the purposes outlined in the license.

Legal Entity: The enterprise must be a legal entity as per the STZA Rules.

Focus Areas: It should aim to produce IT, technology-related goods, software, services, education, or training, while promoting local
IT skills, technology transfer, and domestic manufacturing.

Local Hiring: A commitment to promoting local IT, technology skills development, technical resources and hiring local talent.

Patents: The enterprise should patent its innovations, with preference given to those holding existing patents.

Technology Transfer: Foreign enterprises must commit to technology transfer to local companies.

Training: The enterprise must train youth and graduates in cutting-edge technologies, ensuring employability locally or abroad.

Additional Criteria: Any other requirements as determined by the Approvals Committee.

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