Industry-Specific Reforms > COVID-19 Crisis

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.

Industry-Specific Reforms > COVID-19 Crisis

  • 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).

Industry-Specific Reforms > COVID-19 Crisis

  • 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.