Article-49 : *

Investments made by institutions for the training of children, education, teaching, scientific research and professional training and establishments for cultural production and the co-ordination of young people, and by health and hospital entities, give entitlement to the following tax incentives:

1. Exemption from customs duties and taxes with a similar effect, suspension of value added tax and consumption duty for imported equipment with no locally manufactured equivalent which is necessary for the realisation of those investments, as well as suspension of value added tax on equipment manufactured locally.

The conditions governing entitlement to this benefit are fixed by decree.

2. Subject to the provisions of Articles 12 and 12 bis of Law n° 89-114 of 30th December 1989 promulgating the Code for income tax on natural persons and companies tax, subscription to the company's initial capital or its increase gives entitlement to deduction of the incomes or profits invested up to the limit of 50% of the net incomes or profits liable to income tax on natural persons or companies tax.

Investments made by those companies also give entitlement to deduction of the profits invested in the company itself up to the limit of 50% of the net profits liable to companies tax. Entitlement to these benefits is subject to adherence to the conditions envisaged by Article 7 of the present Code.

3. Deduction of the incomes or profits originating from those activities from the taxable basis of income tax on natural persons or companies tax, subject to the provisions of Articles 12 and 12 bis of Law n° 89-114 of 30th December 1989 promulgating the Code for income tax on natural persons and companies tax. This benefit is granted to companies in existence before the present Code was promulgated and as from 1st January 1994.