On 25 July 2023, Egypt published Law No 160 of 2023 in the official gazette amending the Investment Law No. 72 of 2017. These amendments primarily focused on enhancing incentives for foreign investors, encouraging investment distribution across the country, and expanding the types of eligible companies allowed to undertake projects in Egypt.
Law 160 introduces a new cash investment incentive program for industrial projects, offering investors a refund of 35% to 55% of the corporate tax paid on income generated by these projects. To qualify for this program, project owners must meet certain conditions:
- A minimum of 50% of project funds must come from foreign currency sources.
- The project must commence within six years from the effective date of Law 160. The Egyptian Cabinet may extend this period by an additional six years if needed.
The Egyptian Ministry of Finance is responsible for granting the refund to investors within 45 days of the tax return filing deadline. Failure to do so will result in a late payment fee for the investor. Importantly, the cash investment incentive received by investors will not be considered as taxable income.
Law 160 also introduces several additional incentives for investment projects:
- Exemption from usufruct charges on land allocated for project establishment for up to 10 years from the start of operations, subject to approval by the competent minister:
- Exemption from contributing to infrastructure, public services, and utilities costs, not exceeding 50%, as determined by the Prime Minister based on criteria set by the Supreme Council; and
- Exemption from paying up to 50% of the project’s basic utilities consumption for a maximum of 10 years, as determined by the Supreme Council.
