Exemption of equipment and machinery from taxes in this case

Dr. Mohamed Maait, Minister of Finance, issued a decision to amend some provisions of the executive regulations of the value-added tax law, which included defining the controls and procedures for benefiting from the exemptions established in the recent amendments to the value-added tax law.

  Exemptions relate to services that affect the lives of citizens, and sectors aimed at supporting industry, stimulating production and growth, and taking into account the social dimension, in light of global economic challenges.

·    Suspension of payment of tax due on:

  Machinery and equipment imported from abroad or purchased from the local market for factories and production units to be used in industrial production, so that the industrial producer submits to the competent customs a document approved by the competent technical authority.

If the import of machinery and equipment is for the purpose of trading, the importer must submit to the competent customs documents proving the import of the industrial producer to be used in the industrial production licensed for the factory or production unit.

• Suspension of tax payment for a period of one year from the date of release of machinery and equipment from customs.

Suspension of tax payment shall be for a period of one year from the date of release of machinery and equipment from customs or purchase from the local market, and it is permissible for justifiable reasons to extend this period for another period of one year as a maximum.

If it is proven to the Authority that these machines and equipment were used in industrial production during this period, they are exempted from this tax, and it is waived immediately after the start of production.

In this case, it is prohibited to use it for purposes other than those for which it was exempted during the five years following the exemption before notifying the authority and paying the due tax, according to its status, value, and the applicable tax category on the date of payment.

• Procedures to take advantage of the incentives prescribed by law to encourage investment in the regions

The executive regulations included a law to encourage investment in economic zones of a special nature by not charging the goods or services imported for these projects with value-added tax.