The Egyptian cabinet approved on Thursday on a draft law amending some provisions of the Investment Law and granting incentives to industrial projects.
The draft law stipulates that “a company or an establishment shall be incorporated within a maximum period of three years from the date of enforcement of the executive regulations of this law. This period may be extended for other periods, the total of which does not exceed nine years by virtue of a decision of the cabinet based on a proposal of the competent minister”.
A new article has been added to grant investment projects in industries and areas determined by the cabinet an investment incentive that does not exceed 55 per cent of the value of the tax on income generated from the activity in the investment project.
The draft law also stipulates that the Ministry of Finance is obligated to disburse this investment incentive within 45 days from the end date of the deadline specified for submitting the annual tax return, otherwise a return for the delay shall be calculated on the basis of the credit and discount rate announced by the Central Bank of Egypt on the first of January.
It also stipulated that the cabinet, based on a joint proposal from the Competent Minister, shall issue a decision that includes the industries and regions that enjoy the incentive mentioned in this draft law, and the periods for granting the incentive to each of them, which should not exceed ten years.
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