SEZs the world over have proved to be a boon, notes a KPMG India study: SEZs - a window of business opportunities Known variously as export processing zones, free trade zones, foreign trade zones, export processing regimes or free zones, sezs flourish through their competitive fiscal packages. In Australia, Mauritius, Malaysia and the British Virgin Islands (bvi), they also function as offshore banking units or as international financial services centres. China's five sezs, for instance, which are in Shanghai's Pudong Development Zone, Hunchun and the provinces of Guangdong, Fujian and Hainan, have a 45 per cent share of the country's exports. China's enabling framework for sezs treats foreign employees as citizens for certain benefits, such as purchase of residential property, hospitalisation and touring. Each sez has its own package of tax concessions based on factors such as value of exports, extent of foreign investment, and use of advanced technologies. These concessions typically extend to a no-tax period up to two years after profits are made. Only half the normal tax rate is levied over the subsequent two years, with full normal taxes imposed from the fifth year. As in China, Dubai's sezs too are developed by the government, with foreign companies allowed 100 per cent ownership. There are no currency restrictions or restraints on the hire of expatriates and corporate tax exemption is guaranteed for 50 years. They are also fully exempt from import and export taxes as also personal income-tax with full repatriation of capital and profits. The kpmc study mentions that $19 billion has been invested in sezs in the Philippines, which are developed through private joint venture partnerships. They have registered an eleven-fold leap in exports between 1994 and 2005. Key fiscal incentives include a 5 per cent tax on the gross income earned within the sez in lieu of all national and local taxes, except for real property taxes on land owned by developers. obus were ushered into Australia and Mauritius through their Banking Acts of 1959 and 1988 respectively, and into Malaysia via its Offshore Banking Act of 1990. Australia provides a concessional 10 per cent rate on income, excluding capital gains, and waives interest withholding tax. The Mauritian obus tax incomes at 15 per cent on a net basis, deem 80 per cent credit for income taxed overseas and waive withholding tax on interest paid to non-residents, while Malaysia taxes income at 3 per cent of net audited profits. ifscs in the Virgin Island started in 1984 and waive wealth, capital gains and estate taxes as well as stamp duty and permit the transfer of assets or mergers with foreign entities, and dispense with accounting or holding AGMS.