The Egyptian Cabinet of Ministers extended the period during which eligible investment projects can benefit from the tax reduction system under the Investment Law No. 72/2017 (“Investment Law”) from 3 years to 6 years.
By virtue of this amendment, investment projects established in Egypt until 28 October 2023 will be eligible to benefit from the tax reduction system stipulated under Article 11 of the Investment Law.
Eligible projects are granted reduction from their net taxable profits equivalent to the following:
- 50% of the investment cost of setting up the project that locates in the underdeveloped locations determined by the Central Agency for Public Mobilization and Statistics (CAPMS).
- 30% of the investment cost of a setting up the project that is working in one of the sectors determined by the Investment Law, i.e., labor incentive projects, SMEs, renewable energy and electricity projects, tourism projects, food and agricultural, engineering and exporting projects. The reduction amount shall not in all cases exceed 80% of the paid-up capital of the project up until the date of operation.