Economic Snapshot- Investment Law in Egypt

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ECONOMIC SNAPSHOT

Eg

Egypt’s New Investment Law No. 72 of 2017 Investment Guarantees • Fair and equitable treatment for Egyptian and foreign investors

• Fair • Residence permits for foreign investors

and Egyptian a

• Protection against nationalization

• Seizure of money is only allowed by virtue of a court judgment • Protection

• No coercive or discriminatory measures against invested money

• Land and property licenses may not be withdrawn without prior notice • No coerciv

• The right to repatriate profits outside Egypt and receive foreign funds

against inv • Liquidation process to be finalized within 120 days

• No importation license needed for machinery and equipment

• Expats can be employed up to 10% ofEgypt and total employees

• The right t

• No impor machinery

Investment Incentives General Incentives

Special Incentives

Additional Incentives

7-year tax incentive as follows: • Exemption from stamp duty tax and notary public fees for 5 years

• Exemption from land registration fees • Unified flat customs duty rate of 2% on all machinery and equipment

Return of PrivatelyOwned Free Zones

Customs-free and tax-free; they are rather subject to fees of: • • •

1% of revenues achieved from exporting 2% of revenues achieved inside Egypt (For manufacturing or assembly projects) 2% of total revenue from other projects

General Ince

• 50% of investment cost of setting up projects in areas that are in most need of development • 30% of investment cost of projects set up in other areas • Reduction amount shall not exceed 80% of paid-up capital

Corporate Social Responsibility

Allowing investors to allocate up to 10% of their net profits to social development systems to be tax deductible.

• 50% refund of land cost if production starts in 2 years • Free land for specific strategic projects

• Exemption from stam and notary public fees

• Government to share cost of utilities and vocational training

• Allowing projects to have their • Exemption from own customs gates

fees

land

New Arbitration and Mediation Center • Unified flat customs d

on all machinery and

Under the name of “the Egyptian Return of Priva Center for Arbitration and Owned Mediation”; for amicable disputeFree Z resolution.

Customs-free and tax are rather subject to fe •

1% of revenues achieved


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