Goods and services in the Suez Special Economic Zone where the TEDA Cooperation Zone is located are exempt from VAT.

Release time:

2018-12-07 14:41

On December 7, 2018, Muhab Mamish, Director of the General Administration of the Suez Canal and Director of the General Administration of the Suez Canal Economic Zone, announced that with the approval of the Egyptian Ministry of Finance and the Tax Bureau, goods and services in the Suez Special Economic Zone are exempt from VAT, And imports from the Egyptian local market to serve the projects in the special zone, such as necessities for production and operation, shall be treated according to the export commodity policy.

The initiative aims to further reduce processing costs and increase the localization ratio to replace raw material imports. It is also to implement the Egyptian President's instructions to simplify the investment process in the Suez Economic Zone, remove investment barriers, and optimize the institutional arrangements for projects in the Special Zone.

Mamish said that the Egyptian Prime Minister, Finance Minister and Director of Taxation have personally integrated national resources to promote the reform process of Egypt, especially the special economic zones, and increase efforts to attract foreign investment. At present, the Suez Special Economic Zone has become one of the most attractive economic zones in the world. In addition, according to the Regulations for the Implementation of the New Investment Law, the Suez Special Economic Zone has been listed as a Class A area and enjoys the most favorable investment policy. Within 7 years after the start of the project operation, the net profit of taxable items will be deducted. 50% of the investment cost, at the same time, the export of goods and services in the special zone is exempt from tax.