New incentives to industrial investment projects with foreign investment
28 Dec 2023
On 28 December 2023, the Cabinet of Egypt issued Decree No. 77 of 2023, which grants new incentives to certain industrial investment projects and their expansions. The Decree outlines the targeted investment projects, details the rules and conditions for receiving investment incentives, categorizes the incentives, specifies the restrictions on receiving these incentives. It also identifies the responsible committee for approving the incentives and the procedures to be followed.
Industrial projects in the following sectors are eligible for the new tax incentives: metal industries, chemical industries, engineering industries, medical and pharmaceutical industries, textile industries, and mining industries. The incentives are categorized based on the percentage of foreign funding of the project as follows:
- Projects with foreign funding between 50 and 75 per cent will be entitled to a cash incentive equivalent to 35 per cent of the income tax due on the project.
- Projects with foreign funding between 75 and 90 per cent will be entitled to a cash incentive equivalent to 45 per cent of the income tax due on the project.
- Projects with foreign funding of 90 per cent or more will be entitled to a cash incentive equivalent to 55 per cent of the income tax due on the project.
A new committee will be established to examine investors’ applications for the tax incentives and determine eligibility criteria.
The incentive will be available for seven consecutive years.
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Type:
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Promotion and facilitation (Investment incentives)
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Industry:
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Primary (Mining and quarrying)
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Manufacturing (Manufacture of textiles, wearing apparel, leather and related products, Manufacture of chemicals and chemical products, Manufacture of basic pharmaceutical products and pharmaceutical preparations, Manufacture of basic metals, Manufacture of fabricated metal products, except machinery and equipment)
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Services (Construction, Human health activities)
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Sources:
