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Egypt’s Finance Minister, Mohamed Maait announced that the ministry has amended its Value Added Tax (VAT) Law to simplify the process of exempting VAT taxes on imported machinery and equipment used for production
Egypt’s Finance Minister, Mohamed Maait announced that the ministry has amended its Value Added Tax (VAT) Law to simplify the process of exempting VAT taxes on imported machinery and equipment used for production. Now, manufacturers will not need to provide certificates of origin, cash deposits, or letters of guarantee to be exempt from the five percent VAT on imported machinery, equipment, and production lines used in industrial production and services.
Previously, manufacturers were required to provide certificates of origin, cash deposits, or letters of guarantee to be exempt from the five percent VAT on imported machinery, equipment, and production lines used in industrial production and services.
Companies can now submit a pledge, either personally or through a legal representative, with a certified signature from banks, guaranteeing the tax or customs authorities that they will promptly pay applicable taxes when due.
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Maait, emphasized the government’s commitment to promoting domestic production, attracting investors, expanding business activities, and creating job opportunities.In terms of green hydrogen production, Maait explained that Egypt offers tax incentives ranging from 33 to 55 percent of the taxes owed, as well as providing tax incentives of up to 35 percent of the local production cost for each electric vehicle manufactured.
