Several factories faced a number of challenges, including the following:

• Meeting their obligations towards their workforce—payment of salaries and other benefits.
• Increased financial burdens associated with the additional costs of meeting public health requirements and raising the awareness of the workforce to prevent the spread of COVID-19.

• Grant industrialists a three-month exemption from paying the following obligations:

1. Income tax
2. Salary tax 
3. Social Insurance contributions
4. Electricity bills

•  Expedite the disbursement of relief funds to enterprises that were forced to partially or fully shut down, whether the shutdown was due to economic reasons or in response to an administrative order. Funds are to be made available from the Emergency Fund, which is partially financed through monthly contributions paid by public and private sector employers who hire thirty (30) ‎employees or more (1% of the basic wage of employees).

• Factories and tourist establishments are permitted to defer real estate tax payments for three months and pay delinquent real estate taxes in installments over six months. 
• Suspension of the administrative attachment imposed on all taxpayers who have outstanding tax liabilities against paying 10% of these liabilities, as well as forwarding their tax files to the tax dispute resolution committees for settlement.
• The stamp duty rate on the Egyptian Exchange transactions was reduced to 1.25 per thousand for non-residents, and 0.5 per thousand for residents (down from 1.5 per thousand). 
• Non-residents are granted a permanent exemption from the capital gains tax, and residents are granted a deferral of the tax through 1/1/2022.
• Lowering of the withholding tax imposed on dividend distributions made by Egyptian Exchange-listed companies to 5%—a 50% reduction. 

• Penalties involving the deprivation of liberty

• Abolish all penalties involving the deprivation of liberty
• The insurable earnings should not be less than 50% of the total earnings of the employee, with a maximum of LE 6,520; this is the maximum cap (base earnings + variable earnings) prescribed in the law, which is scheduled to come into force on 1/1/2020.
• Exclude all elements of variable earnings, including incentives and allowances, not to exceed 100%, from the total insurable earnings. (SEIF)
• Dividends paid to employees should not be considered as earnings for the purpose of calculating insurable earnings.
• Do not increase the maximum cap amount of insurable earnings beyond the amount which will be applied on 1/1/2020, when the law enters into force (LE 6,520); contributions against any amount that exceeds this cap should be borne only by the insured, however, the amount should not exceed double the total maximum limit on 1/1/2020. 

A new Social Insurance and Pension Law No. 148 of /2019 was issued on 19/08/2019. Key features of the law include:

• Elimination of penalties involving the deprivation of liberty.
• Monetary penalties—fines— are reduced, and the amount of the fine varies according to the offense committed. For example, the fine was reduced from LE 50,000 to LE 20,000; the LE 20,000 is set as the fine floor, and LE 100,000 the fine ceiling, if the offense is not repeated. 
• Allowances are fully excluded from the calculation of the insurable earnings.

• The contribution rates for old-age, disability, and death insurance that the employer and the insured employee should commit to (Clause 2 of Article 19)

• Specify the contribution rates for old-age, disability, and death insurance that the employer and the insured employee should commit to (Clause 2 of Article 19). In the absence of specific contribution rates, conflicts between employers and insured employees are likely to arise. 
• Set the contribution rates referenced in Clause 2 of Article 19 (pertaining to private sector employment) at 11% for the employer, and 10% for the employee.