Surprise.. Investment Incentives of Up to 55% to Increase Investments

Coinciding with the high rate of economic growth and the presence of international expectations for the continuity of this growth in light of many global crises, the country has taken many serious steps and measures that support the increase in the volumes of investments of all kinds, whether local or foreign, considering the investment sector as one of the main pillars for achieving development and renaissance.

 Investment Incentives

From time to time, the government sheds light on the investment incentives that are granted to the owners of investment projects, by reviewing and reconsidering them and examining the possibility of adding more of them, as they are the basic core for increasing capital flows.

A few days ago, the government launched its latest measures to support investors, which is to submit amendments to the current investment law to add and approve new investment incentives.  These procedures include:

The Council of Ministers, headed by Dr. Mostafa Madbouly, approved a draft law amending some provisions of the Investment Law promulgated by Law No. 72 of 2017, and the draft law stipulated that “the company or establishment shall be established within a maximum period of three years from the date of enforcement of the executive regulations of this law, and it is permissible by a decision of The Council of Ministers, upon the proposal of the competent minister, may extend this period for further periods, the total of which does not exceed nine years.

 Investment Incentive up to 55%

A new article has been added that includes granting investment projects in industries and regions determined by the Council of Ministers, and their expansions, an investment incentive that does not exceed 55% of the value of the tax on income generated from conducting the activity in the investment project, or its expansions, as the case may be. The free woman or whoever he authorizes to issue the necessary certificate to enjoy the incentives stipulated in the draft law.

The draft law 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 it will be due in return for a delay calculated on the basis of the credit and discount rate announced by the Central Bank on the first of January preceding the due date of the incentive with Excluding month and pound fractions.

Conditions for Granting Incentives

 In order to grant the incentive, the investment project, or its expansions, as the case may be, depends on its financing until the date of start of operation on foreign exchange from abroad at least 50% of its cost.

That production begins within 6 years from the date of the draft law, with the possibility of extending this period for one time. One by a decision of the Council of Ministers, and based on a joint proposal from the Competent Minister, the Minister concerned with Industry Affairs and the Minister of Finance.

It was also stipulated that the Council of Ministers, based on a joint proposal from the Competent Minister, the Minister concerned with Industry Affairs, and the Minister of Finance, issue a decision that includes the industries and regions that enjoy the incentive stipulated in this draft law, and the periods of granting the incentive for each of them shall not exceed ten years. As well as the conditions, rules and categories of granting incentive.