The passing of the Investment Incentive Law (Law No.1 / 1998) by the PLC was aimed at encouraging medium ($100,000 – $1,000,000 ) and large size ( over $1,000,000 ) local and foreign investments in most investment fields by exempting the earnings on these investments from paying income taxes for a period of five years, with an additional (8–15) years at 10% income tax. Investments in the IT sector qualify for income tax exemption under this law. IT training and R & D expenses are treated as amortizable capital investments.

The process of applying for income tax exemption under this law is fairly smooth. Licensed local accountants or lawyers can carry-out this task with no problems. There is a committee which meets once a month to study new applications. The process of granting a tax-exempt-investor certificate is well documented in the law.