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JLCC
- March 14, 2024
The government has provided a number of benefits and incentives to the industrial sector through many financial measures and policies adopted by the state, within the framework of working to improve the growth structure of the national economy to become more diversified and competitive, relying on local production and exports, and more capable of absorbing hundreds of thousands of job opportunities. Annually, the most prominent of these incentives are:
1- Expansion of the golden license, through which the investor obtains one approval to establish his project.
2- Disbursing more than 50 billion pounds to exporting companies since the start of export development initiatives in October 2019 until now.
3- Exempting strategic industrial projects from some types of taxes for a period of 5 years, with the possibility of recovering a percentage of the value of the land and investment costs of up to 50%, provided that the project is implemented within half the specified period.
4- Introducing a clearing system between investors’ dues and their tax or other burdens for the benefit of government agencies, setting a time limit of 45 days to ensure the speedy return of value-added tax.
5- Applying an investment incentive of 33% to 55% of the tax due on the profit earned from green hydrogen projects and strategic industries.
6- Customs exemption for most parts and components of mobile phones.
7- Canceling the development fee on parts, components, and the final product of mobile phones made in Egypt.
8- Dropping the unpaid value-added tax on machinery and equipment imported from abroad for use in industrial production.
9- Subjecting goods or services exported abroad or imported abroad by economic zone projects of a special nature to tax at a “zero” rate.
10- Renewing the implementation of Investment Law No. 72 of 2017, which includes deducting a percentage of the value of investment costs amounting to 50% of the taxable base for projects in areas “A” and “B” and special incentives for activities related to information and communications technology.
11- Amending the customs tariff to reduce the “import tax” category on more than 150 types of production requirements and inputs.
12- Launching the National Program for the Environmentally Friendly Automotive Industry, and enhancing the budget of the Fund for Financing the Environmentally Friendly Automotive Industry by an amount of half a billion pounds.
13- Providing 160 billion pounds in soft financing for agricultural, industrial and tourism production activities at an interest rate not exceeding 11% over 5 years, and the treasury will bear
The state’s public interest rate exceeds more than 13 billion pounds annually.
14- The state treasury bears 5 billion pounds of the value of the real estate tax due on industrial projects for a period of 3 years, and 6 billion pounds annually to support electricity for industry.