Egypt’s Ministry of Finance issued a simplified guide to tax and customs benefits and incentives prescribed for investors regarding taxes, customs, investments, and other finance-related mechanisms.
The guide includes rules and procedures to make use of these benefits, recognising the importance of developing tax and customs awareness among the business community in a way that contributes to attracting more investments, expanding exports, and then maximising production capabilities.
It also covers providing new job opportunities in a manner consistent with efforts made by the state to achieve economic and development goals, improve citizens’ standard of living, as well as improving the services provided to them.
Minister of Finance Mohamed Maait also directed to continue updating the simplified guide whenever new incentives and benefits are updated by law.
Furthermore, the guide explains the Investment Law, which achieves a balance between stimulating investments and incentives and the exemptions it requires and preserving the rights of the state and achieving economic development.
The minister noted that granting tax incentives is linked to the state’s goals to encourage businesses in targeted geographical regions, especially activities and industries with strategic importance by determining investors’ eligibility to recover a percentage of the cost of financing and investment from their net profits.
This percentage is graded according to the priority of investment in each targeted area and other incentives included in the law for projects that are established within technology zones, free zones, or expansions of investment projects already established without prejudice to the established legal positions under previous laws.
Furthermore, the guide mentioned advantages included in Law No. 83 of 2002 on Economic Zones of a Special Nature for projects that are established within the economic zones, whether in terms of setting up a special system for tax or customs administration, or stating the advantages related to tax laws enjoyed by projects established within the economic zones or the equipment and machinery they import for exemption from the provisions of tax laws.
Additionally, the simplified tax treatment for owners of these projects is included in the Small, Medium, and Micro Enterprises Development Law to encourage establishments operating in the informal sector and registered establishments to commit to paying a definitive tax at a fixed amount or a tax at a small percentage of the turnover and to submit a simplified tax return.