The recent amendments to the Investment Law’s Executive Regulations have seen the New Administrative Capital (NAC) added to Sector (A) – areas most in need of development according to the investment map – which will facilitate investment opportunities in the project.
The NAC will also witness new investment incentives that were recently approved by the Administrative Capital for Urban Development (ACUD), according to the company’s spokesperson Khaled El Hosseini.
El Hosseini added that according to the Investment Law, tax incentives and facilities will be provided, including granting investment projects that are being developed after the law’s implementation.
There will also be an investment incentive, as a deduction from taxable net profits, at a deduction of 50% from investment costs.
He added that in all cases the investment incentive must not exceed 80% of the paid capital until the date of commencement of operation, in accordance with the provisions of the Income Tax Law promulgated by Law No. 91/2005. At the same time, the period of deduction must not exceed seven years from the date of commencement of operation.
In its weekly meeting in late November, the Egyptian Cabinet approved a draft decree to amend the second paragraph of Article No. 10 of Executive Regulations for the Investment Law. In doing so, it added the NAC within Sector (A) within the scope of application of the provisions of the Investment Law promulgated by Law No. 72/2017.
The text of the cabinet’s decision stated that this amendment comes within the framework of revitalising investment opportunities in the NAC.
