Egypt – New Tax Incentives | KPMG | GLOBAL
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Egypt

Egypt

Egypt

KPMG in Egypt provides an overview of significant changes to Egypt’s tax laws, including new tax incentives according to the new Investment Law as follows:

New Tax Incentives

General tax incentives 

  1. Projects incorporation contracts and facility agreements are exempted from stamp tax for 5 years from the date of the commercial register.
  2. Lands for the projects are exempted from registration fees and stamp tax.

Special tax incentives

Investment cost that is reduced from due taxes in 2 categories as follows:

  1. 50% of the investment cost for A category – Areas that requires urgent development.
  2. 30% for B category – remaining areas in Egypt for especial activities.
  • If it meets the requirements in the law.
  • The incentive are reduced on 7 years as a ceiling period for the incentive.
  • In order to get the incentive:

1. The establishment of the company either after the date of this law and within 3 years (or before the date by thirty months maximum),
2. The use of new assets (transfer of assets from other projects or from liquidation cancels the incentive).

N.B.: The investment minister can decide additional incentives.

Special Free Zone Incentives

The companies formed under free zone are exempted from:

  1. All taxes and fees.
  2. Customs duties and VAT.

Public Free Zones Projects: A fees of 2% on commodities value for storage projects and 1% on commodities value (FOB) for manufacturing and assembly projects or 1% on total revenues if not a storage or manufacturing projects.

Private Free Zones Projects: A fees of 2% on total revenues for storage projects and 1% on total revenues for manufacturing and assembly companies 2% on total revenues if not a storage or manufacturing projects.