Section 4: Qualifying venture incentives.

The following incentives shall accrue to venture investments-(a) an equity investment by a venture capital company in a venture project company shall, for purposes of capital allowance under the Companies Income Tax Act, be treated as follows-
(i) for the first year deduct 30 per cent;
(ii) for the second year deduct 30 per cent;
(iii) for the third year deduct 20 per cent;
(iv) for the fourth year deduct 10 per cent;
(v) for the fifth year deduct 10 per cent
(b) the amount of capital gains accruing to a venture capital company from a disposal of its equity interest in a venture project company shall be exempted from capital gains tax as follows-
(i) for the disposal of capital within five years of investment, 100 per cent;
(ii) for the disposal of capital between six and ten years of investment, 75
per cent;
(iii) for the disposal of capital between eleven and fifteen years of investment,
25 per cent;
(iv) for the disposal of capital after fifteen years of investment, 0 per cent;
(c) the withholding tax payable on dividend declared by the Federal Inland Revenue Service in a venture project company shall be reduced by 50 per cent of the prevailing rate of withholding tax in respect of dividend received by a participant in the Risk Fund and venture project company within the first five years;
(d) the provisions of the Industrial Development (Income Tax Relief Act, shall apply to a venture project company; and
(e) the provisions of the Export (Incentives and Miscellaneous Provisions) Act shall apply to a venture project company to the extent of the involvement of the venture project company in the exportation of its products.