The Ministry of Finance issues a simplified guide to tax incentives and incentives for investors
The Ministry of Finance has issued a simplified guide to tax and customs benefits and incentives prescribed for investors by tax, customs, investment and other laws, which explains the rules and procedures for obtaining these benefits. Realizing the importance of developing tax and customs awareness in the business community; In a way that contributes to attracting more investment, expanding the export base, and then maximizing our production capabilities and providing new jobs; In a way that is in line with the state’s efforts to achieve economic and development goals, improve the standard of living of citizens and improve the services provided to them.
dr. Mohamed Maait, Minister of Finance, ordered that the simplified guide be constantly updated with tax and customs incentives and incentives for investors, whenever new incentives and incentives are enacted under tax, customs, investment and other laws; And the expansion of bridges of communication with the business community, so that they become aware of what the Egyptian legislation includes in terms of incentive packages that support investment activities, integrated with the provision of a strong infrastructure capable of development and production expansions, in order to encourage investment movement with promising development opportunities.
He referred to the “Simplified Guide to Tax Incentives and Incentives”, an investment law that strikes a balance between encouraging investment and the incentives and exemptions it requires, and between preserving state rights and achieving economic development, as the provision of tax incentives is linked to the goals that tends to the state, in order to encourage activity in regional regions Targeted geographic areas, especially activities and industries of strategic importance, by determining the acceptability of investors to return a percentage of financing costs and investments from their network, and this percentage is evaluated according to the priority of investment in each targeted area , and other incentives included in the law for projects that are established within the technological areas or regions of the Free Zone or the expansion of investment projects that have already been established, without questioning the established legal positions according to previous laws.
The guide also reviewed the advantages included in the Law on Economic Zones of a special nature for projects established within economic zones, either in terms of establishing a special system for tax or customs administration or by specifying the advantages enjoyed in connection with tax laws by projects established within economic zones or with what they import. Equipment, machines and devices with exemption from the provisions of tax laws, except for the simplified tax treatment for the holders of those projects covered by the Law on the Development of Small, Small and Medium Enterprises; Encourage companies operating in the informal sector and registered companies to commit to paying a permanent tax in a fixed amount or a tax in a small percentage of turnover and to submit a simplified tax return.
The guide also referred to the provisions of the law on joint-stock companies, limited liability partnerships, limited liability companies, one-person companies, the law on the capital market, the law governing financial leasing and factoring, the law on waste management and on of science. , technology and innovation incentives law in terms of benefits and incentives, whether in terms of tax exemptions or deductions or tax refunds.
dr. Hisham Al-Hamwi, adviser to the Minister of Finance for the affairs of the appeals committees and the resolution of tax disputes, said that this “guide” will have a positive effect on the development of awareness among all government agencies about tax and customs incentives and incentives for investors, and contribute to unifying opinions in dealing with investors about these benefits that are approved for investment projects in Egypt, along with educating the business community; In a way that stimulates economic activity and encourages investment expansion.
Dr confirmed. Muhammad Suleiman Qura, head of the Central Department of Financial Legislation, said that the “simplified guide to tax relief and incentives” dealt with the benefits and exemptions included in the Income Tax Act, or installments of tax and others, and that the Income Tax Act the value also includes a reduction in the tax rate on used machinery and equipment. In the production of goods or the provision of services and the subjection of some goods and services to taxation at the “zero” rate, tax deduction when calculating taxes, suspension, refund, settlement and installment payment of taxes, and its inclusion in the list of goods and services exempt from value added tax , drawing attention to what is included in the “tax” legal stamp” from the exemption.
He added that the “guideline” reexamines what is contained in the Law on the Uniform Tax Procedure in terms of strengthening the reliance on modern means of mechanization – completely – in undertaking tax procedures, moving from the phase of transition from paper procedures to mechanization, so that these means become a legally approved means of tax proof, and communication between the Tax Administration, the financier or the taxpayer, and other reliefs, referring to what the tax law on built real estate included in terms of the release and installment of the annual due tax, reliefs and reliefs given by the Ministry of Finance for support to the industrial sector, since the ministry bears the full value of the tax owed on built real estate used in the performance of industrial activity For a period of three years starting from January 1 last year, except for what was contained in the Customs Law and the last customs tariff, in in terms of customs installments, exemption from additional og tax, collection of customs duty in percentage of value or in categories determined by customs. tariff, temporary permit, temporary release and refund of duty, pre-booking of ACI shipments, advance clearance and other facilities and benefits Which aims to reduce clearance time and manage procedures.