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Investment incentives in Egypt

Investment incentives in Egypt

Law No. 8 adopts a geographically and activity based Tax incentive structure. The following tax incentives are granted and they include;

  • A basic five-year tax holiday is awarded for priority sectors in the Old Valley, including: infrastructure, manufacturing, venture capital projects, financial leasing, software, tourism, livestock, fish and poultry, refrigerated transportation services for agricultural produce, foodstuffs, marine transportation, oil sector support services, hospital and medical centres offering 10 of their overall capacity free of charge and aviation projects
  • Profits are exempt from corporate income tax for 10 years, starting from the first fiscal year following the year in which production commenced.
  • A five year residence is granted to founders of joint stock and limited liability companies and partners in a partnership of established companies and institutions
  • New industrial (manufacturing) companies with more than 50 employees are exempt from corporate income tax for five years, starting from the first fiscal year following the commencement of production
  • No tax is levied on free zone projects or on dividends paid out of the profits of such projects.
  • No customs duties are levied on goods entering free zones from abroad or from other free zones, including capital equipment and transportation equipment necessary for production activity within the free zone.

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