East-Timor: Investing

FDI in Figures

Even though they are still weak, foreign investments into the country are increasing. This trend should continue during the next coming years due to the investors' increasing interest in the country's energy resources and the restoration of its political stability.

The factors which encourage FDI are the development of oil and gas resources in offshore waters, a strong and intensive modernization of technology and and the growth of public spending.

The coffee and sandalwood plantations and, lately, the oil and gas sectors attract FDI the most. The main investing countries are Indonesia, the USA and Germany.

	East-Timor	East Asia & Pacific	الولايات المتحدة	Germany
Index of Investor Protection	4.0	5.3	8.3	5.0

Source: Doing Business

Note: The Greater the Index, the Higher the Level of Investor Protection.

Foreign Direct Investment	2008	2009	2010
FDI Inward Flow (million USD)	38	50	280
FDI Stock (million USD)	219.8	119.3	342.3
FDI Inwards (in % of GFCF****)	28.7	9.9	-
FDI Stock (in % of GDP)	38.6	35.4	-

Source: UNCTAD - Last Available Data

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.

Tax Rates

Sales Tax: 5%
Company Tax: 10%
Withholding Taxes: Dividends: 0%, Interests: 0%, Royalties: 10%.
Bilateral Agreement: East Timor and Egypt are not bound by a Double Taxation Agreement.

Investment Opportunities

Tenders, Projects and Public Procurement: Asian Developement Bank, Proposed Projects in Asia
DgMarket, Tenders Worldwide
Setting Up a Company: Consult Doing Business Website, to know about procedures to start a Business in East Timor.
Useful Resources: National Inward Investment Agency

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