Haiti: Investing

FDI in Figures

The inflows of FDI into the country have strongly petered out after the earthquake ravaged the island.

Although there are some barriers to the development of foreign investment in the country, such as corruption, long-term political instability and burdensome bureaucracy, the government continues to offer tax exemptions to investors.

In the Autumn of 2011, a conference organized by the Bill Clinton Foundation and the Inter-America Development Bank reunited almost a thousand potential investors at Port-au-Prince. The major economic sectors selected by the investors were telecommunications and oil. The telephone company Digicel and the Marriott hotel group have announced the construction of a luxurious hotel.

Recently, construction, textile and automobile spare-parts production have aroused the interest of foreign investors.

An industrial zone is going to be built in the northern part of the island, in a joint partnership with the United States. South Korea is planning an investment of almost USD 78 million for a textile factory which will create jobs for nearly 20,000 workers.

The United States and the countries of the European Union are Haiti's major investing countries.

Country Comparison For the Protection of Investors

	Haiti	Latin America & Caribbean	الولايات المتحدة	Germany
Index of Transaction Transparency*	2.0	4.1	7.0	5.0
Index of Manager’s Responsibility**	3.0	5.3	9.0	5.0
Index of Shareholders’ Power***	4.0	6.0	9.0	5.0
Index of Investor Protection****	3.0	5.1	8.3	5.0

Source: Doing Business - Last Available Data.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.

Foreign Direct Investment	2008	2009	2010
FDI Inward Flow (million USD)	30	38	150
FDI Stock (million USD)	415.4	453.0	603.0
Performance Index*, Ranking on 141 Economies	132	126	-
Potential Index**, Ranking on 141 Economies	137	-	-
Number of Greenfield Investments***	1.0	2.0	-
FDI Inwards (in % of GFCF****)	3.3	7.0	-
FDI Stock (in % of GDP)	5.9	6.3	-

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

Turnover tax: 10%
Company Tax: 30%
Withholding Taxes: Dividends: 15%, Interests: 15%, Royalties: 15%.
Bilateral Agreement: Haiti and Egypt are not bound by a Double Taxation Agreement.
Social Security Contributions Paid By Employers: 6%

Country Comparison For Corporate Taxation

	Haiti	Latin America & Caribbean	الولايات المتحدة	Germany
Number of Payments of Taxes per Year	42.0	33.2	11.0	16.0
Time Taken For Administrative Formalities (Hours)	160.0	384.7	187.0	215.0
Total Share of Taxes (% of Profit)	40.1	48.0	46.8	48.2

Source: Doing Business - Last Available Data.

Investment Opportunities

Tenders, Projects and Public Procurement: Inter-American Development Bank, Tenders in South America
DgMarket, Tenders Worldwide
Setting Up a Company: Consult Doing Business Website, to know about procedures to start a Business in Haiti.

Business Setup Procedures

Setting Up a Company	Haiti	Latin America & Caribbean
Procedures (number)	13.00	9.30
Time (days)	105.00	56.70

Source: Doing Business.

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