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Port City ColomboPort City Colombo is a special economic zone with its own tax rulebook. Approved enterprises get corporate tax holidays of up to 15 years, and their staff have paid nothing in personal income tax. Here is exactly how it works, and what it is worth to you.
Regulation 01 of 2025 under the Colombo Port City Economic Commission framework, effective 30 September 2025 for five years (KPMG summary).
Move the slider to your annual salary. We calculate Indian income tax under the new regime for FY 2025-26, and set it against Port City's zero.
Illustrative only. Uses FY 2025-26 new regime slabs, ₹75,000 standard deduction, section 87A rebate, surcharge and 4% cess. The saving applies only if you are not an Indian tax resident: broadly, under 182 days a year in India, with extra rules for high earning citizens. Indian residents are taxed on global income. Talk to your CA.
Inside Port City Colombo, approved enterprises get corporate tax holidays of 8 to 15 years, or a 7.5% rate for secondary businesses, and staff have paid zero personal income tax. Dubai offers the same zero. It just sits four hours further away, inside the region that rattled every boardroom in 2026.
Top headline personal rates. India: 30% slab plus 25% surcharge plus 4% cess under the new regime. Port City incentives per Regulation 01 of 2025, subject to CPCEC approval. Indian tax residents are taxed on global income, so where you live decides what you pay.
| India | Singapore | UAE | Port City Colombo | |
|---|---|---|---|---|
| Corporate tax (headline) | 25.17% | 17% | 9% | 8 to 15 yr holiday, or 7.5% |
| Top personal income tax | 39% | 24% | 0% | 0% |
| Foreign ownership | Sector caps apply | 100% | 100% in most activity | 100% |
| Flight from Chennai | Home | 4 hr | 4 hr | 1 hr 20 min |
Headline rates. India: 22% plus 10% surcharge plus 4% cess for domestic companies; top personal rate 30% plus up to 25% surcharge plus 4% cess under the new regime. UAE corporate tax 9% above AED 375,000. Effective rates depend on structure.
Primary Businesses of Strategic Importance get the long holidays; secondary businesses get 7.5%. The category depends on what you do and how much you invest.
The Colombo Port City Economic Commission is the single window. Your application sets out investment, jobs and activity.
Incentives are granted per business. Get the terms, years and conditions in your agreement before money moves.
Overseas Direct Investment from India runs under RBI rules. Your CA handles the Indian filings; we introduce the Colombo lawyers.
Under Regulation 01 of 2025, primary Businesses of Strategic Importance can receive corporate income tax holidays of 8 to 15 years depending on investment, secondary businesses a concessionary 7.5% corporate rate for 4 years, and staff of approved businesses have paid 0% personal income tax. All incentives require approval from the Colombo Port City Economic Commission.
The incentives apply to approved businesses in the zone regardless of the owner's nationality. Whether an individual Indian pays tax in India depends on Indian tax residency: residents are taxed on global income. Consult a chartered accountant.
Both offer 0% personal income tax. The UAE charges 9% corporate tax above AED 375,000, with 0% possible on qualifying free zone income, while Port City offers multi year holidays or a 7.5% rate for approved businesses.
Yes. Incentives were revised in 2023 and again under Regulation 01 of 2025, and commentators have flagged possible changes to the personal tax exemption. Lock in terms in writing with the Commission before you invest.