A- General Incentives:
Projects set up, after the coming into force of this Law, in accordance with the investment map shall be granted an investment incentive, in the form of a discount off the taxable net profits, as follows:
- A fifty-percent (50%) discount off the investment costs of Sector(A):This sector comprises the geographic areas designated as most in need of development, based on the investment map, the data and statistics issued by the Central Agency for Public Mobilization and Statistics ("CAPMS") and the distribution of investment activities in such areas as specified by the Executive Regulations of this Law.
- A thirty-percent (30%) discount off the investment costs of Sector (B):
This sector covers the remaining geographic areas of the Republic, as per the distribution of investment activities, in respect of the following projects:
- Labor-intensive projects, subject to the controls prescribed in the Executive Regulations of this Law.
- SMEs (Small and Medium Enterprises).
- Projects depending on or producing new and renewable energy.
- National and strategic projects to be listed under a resolution of the SCI.
- Tourism projects to be listed under a resolution of the SCI.
- Electricity generation and distribution projects to be listed under a decree of the Prime Minister, based on a joint proposal of the Appropriate Minister, the minister concerned with electricity affairs and Minister of Finance.
- Projects exporting products thereof outside the geographic territory of the Arab Republic of Egypt.
- Automotive manufacturing and the supplying industries thereof.
- Wood, furniture, printing, packaging and chemical industries.
- Antibiotics, tumor drugs and cosmetics industries.
- Food, agricultural crops and agricultural waste recycling industries. and Engineering, metallurgical, textile and leather industries.
Pursuant to the provisions of the Income Tax Law enacted by Law No. 91 of 2005, an investment incentive may not, in all cases, exceed eighty percent (80%) of the capital paid up until the date on which engagement in the activity starts.The discount period may not exceed seven (7) years from the date on which engagement in the activity starts.
B- Special Incentives:
Conditions to enjoy special incentives:
An Investment Project shall, in order for it to enjoy the Special Incentives, satisfy the following conditions:
- A new company or establishment shall be incorporated to launch such Investment Project.
- Said new company or establishment shall be incorporated within a period not exceeding three (3) years from the Executive Regulations enforcement date. upon a resolution of the Council of Ministers and pursuant to a proposal of the Appropriate Minister, such period may be renewed for once only.
- Said new company or establishment shall keep regular accounts. should such company or establishment be operating in more than one zone, it may benefit from the percentage prescribed for each zone respectively, provided it keeps separate accounts for each zone respectively. and
- Neither shareholders nor partners nor owners of establishments have offered, contributed or used any of the tangible assets of a company or an establishment, existing since the date on which the provisions of this Law come into force, in setting up, incorporating or launching an Investment Project enjoying the incentives accorded by this Law, nor have they liquidated such company or establishment, within the time period specified in Item 2 of this Article (12), for the purpose of setting up a new Investment Project enjoying the incentives of this Law. violation of this condition nullifies said incentives, and accordingly such company or establishment shall pay all taxes due.
C- Additional Incentives:
- Permission to establish special customs ports of entry for Investment Project importations or exportations, in agreement with Minister of Finance.
- Upon Investment Project becoming operational, payment, whether in whole or in part, by the State for the expenses incurred by Investor in course of providing utilities to the premises of Investment Project.
- Payment by the State for a part of the expenses incurred in course of providing personnel technical training.
- Refund at fifty percent (50%) of the value of the land allocated for the industrial projects, should production start within two (2) years from the date on which the land was handed over.
- Allocation of lands free of charge to some strategic activities in accordance with the legally prescribed rules in this respect.