[Play with Cooperation Zone] TEDA Q & A- Policy

[Play with Cooperation Zone] TEDA Q & A- Policy
Q: Suez Bay Northwest Special Economic Zone? Suez Canal Special Economic Zone? Silly can't tell

In 2002, the Egyptian government formally promulgated the "Special Economic Zone Law", positioning the Northwest Economic Zone of the Gulf of Suez as a special economic zone, and announced the establishment of the Northwest Special Economic Zone of the Gulf of Suez, and identified the Suez Special Economic Zone as the first economic zone to implement the Special Economic Zone Law in Egypt. area. -Source: West Asia and Africa Division, Investment Guide to the Northwest Economic Zone of the Gulf of Suez, Egypt, February 2005

Suez Canal Economic Zone-In August 2015, the Suez Canal and its surrounding areas were designated as the "Suez Canal Special Economic Zone" (SCZone), covering an area of 460.6 square kilometers. It is planned to develop it into Egypt's industrial, technological and world logistics center. center. At the same time, the General Administration of the Suez Canal Special Economic Zone (hereinafter referred to as the General Administration of the Special Zone) was established to be in charge of project development in the Special Zone. The Suez Canal economic zone is divided into four special zones and six strategic ports. According to the "Special Economic Zone Law", the special zone enjoys full jurisdiction in administrative management. Except for the four areas of foreign affairs, national defense, internal affairs, and justice, all other ministries and commissions are uniformly exercised by the General Administration of the Special Economic Zone. The special zone has the right to formulate corresponding policies and measures. And flexibility. -- Source: Economic and Commercial Office of the Embassy in Egypt

Q: What laws apply to TEDA Cooperation Zone?

At present, the economic regions available for foreign investment in Egypt mainly include industrial zones, investment zones, science and technology parks, free zones, and special economic zones. Among them, investment zones, science and technology parks, and free zones are governed by the new Investment Law, and special economic zones are governed by the Special Economic Zone Law (Law 83). The Investment Law represents the general law of the investment environment and all investment systems in Egypt, while the Special Economic Zone Law and its amendments only represent the specific law of the internal investment environment (special economic zone), and the content mentioned in the law is the qualification of the general law.

But! As a key project of economic and trade cooperation between China and Egypt, the Egyptian government has given corresponding preferential policies from the legal level in order to give full play to the demonstration and driving effect of the cooperation zone and promote regional development.

Therefore, the laws applicable to the cooperation zone include the Egyptian Special Economic Zone Law and its amendments, the Investment Law and its implementing regulations, the Egyptian Tax Law and its amendments, the Implementation Regulations of the Egyptian Special Economic Zone Law, and other relevant special economic zones. Laws, regulations and internal regulations of the special economic zone.

Q: What conditions do you need to carry out business activities in the TEDA Cooperation Zone? What are the preferential policies you can enjoy after entering the TEDA Cooperation Zone?

Any company can carry out business management activities in the special economic zone only by obtaining the business license and permit issued by SCZONE AUTHORITY. The preferential policies that can be enjoyed by TEDA cooperation zone and enterprises entering the zone mainly include the following contents:

1. economy class

1. Investment tax incentives

Bond income, interest on loans and credit facilities obtained by institutions, major development companies, and companies, enterprises and their branches in the Special Administrative Region are exempt from all taxes and fees.

The Special Administrative Region does not implement the sales tax law, stamp tax law and the relevant provisions of the national resource development fee, nor does it implement other direct or indirect taxes and fees.

Companies, enterprises and their branches in the special zone are exempt from customs duties and all other taxes and fees for the import of all kinds of materials and equipment necessary for operation, and can directly handle all import and export business on their own without the need for import and export registration and licensing.

The special zone can give non-tax convenience and preferential treatment to high employment projects, local raw material deep processing projects, logistics projects, trade development projects, traditional energy, new energy, renewable energy projects, agricultural projects, land transportation, sea transportation, and railway transportation projects in the power industry.

According to the Regulations of the Investment Code, the Suez Canal Economic Zone is included in the "Category A Area". The TEDA Cooperation Zone and enterprises investing in the zone can enjoy a "special incentive" of 50% reduction in investment costs in accordance with the law"

2. Bilateral multilateral trade agreements

At present, the regional trade agreements that Egypt has joined mainly include: Egypt-EU Partnership Agreement, Greater Arab Free Trade Area Agreement, African Free Trade Area Agreement, (US, Egypt, Israel) Qualified Industrial Zone Agreement, COMESA, Egypt-Turkey Free Trade Area Agreement, etc. According to these agreements, most of Egypt's products are exported to countries in the agreement region to enjoy a zero-tariff free trade policy.

TEDA cooperation zone to enjoy the qualified industrial zone (QIZ) tariff-free treatment preferential policies. According to the QIZ agreement, if 10.5 per cent of the value of Egypt's exports to the United States are made in Israel, and the combined Israeli and Egyptian components exceed 35 per cent, they will enjoy tariff-free access to the United States. The agreement is not limited to products, does not set quotas, and has no termination period. Enterprises in the park can apply for QIZ qualification at any time. After approval, they will review whether their export transactions within the time limit meet the relevant component requirements every six months. QIZ management welcomes Chinese investors

2. non-economic

1. Investment guarantee measures

Unless otherwise specified, companies in the Suez Economic and Trade Cooperation Zone are only subject to the laws of the special economic zone and the management regulations of the special economic zone, and are not controlled by the general out-of-zone management system, nor are they subject to any general out-of-zone laws and regulations.

consultation mechanism. China and Egypt have established a "comprehensive strategic cooperative partnership" to promote mutual development in politics, economy, trade, science and technology and other fields. The two countries have established a three-level consultation mechanism for the TEDA Cooperation Zone, which not only establishes the legal status of the TEDA Cooperation Zone, but also promotes assistance at all levels to solve the difficulties faced by the TEDA Cooperation Zone and its enterprises

2. Employment policy

Labor policies are more relaxed, providing certificates of origin in Egypt, implementing unified tariffs, setting up tax management platforms and dispute settlement mechanisms, etc.

Applications for work permits are the responsibility of the SAR Authority and do not require approval from the Ministry of the Interior and the Ministry of Labor. The Authority may, if appropriate, relax the 10% employment ratio for foreign employees.

3. Service Policy

A one-stop service center is set up in the TEDA Cooperation Zone to provide company establishment, registration, registration and handling of relevant government documents for investment enterprises in the zone. Investment enterprises in the zone enjoy more convenient and efficient services.

In addition to the general litigation and arbitration methods, the special economic zone also has a special dispute resolution center in the special zone to provide investors with another convenient way of dispute resolution.