Discussed: 6 advantages granted to civil associations in Egypt’s NGO law

CAIRO – 10 June 2022: A number of advantages were granted to NGOs per Article 17 of law regulating the practice of civil work in Egypt. Egypt Today will highlight these advantages in the below lines.

Article (17):

Without prejudice to any benefits stipulated in another law, associations, civil institutions and unions established in accordance with the provisions of this law shall enjoy the following advantages:

1- Exemption from registration fees that the association is responsible for in all types of contracts to which it is a party, such as ownership contracts, mortgage or other rights in rem, as well as fees for ratification of signatures.

2- Exemption from taxes and stamp duties currently imposed, and which will be imposed in the future on all contracts, agencies, papers, printed papers, records, etc., the burden of which falls on the association.

3- Exempting the built real estate owned by the association from all real estate taxes, provided that the association’s right to own real estate is limited to real estate that enables it to achieve its purposes only, and it is not allowed to change the activity except with the approval of the competent minister.

4- Donations made to associations are considered as a charge on the donor’s income, not exceeding (10 percent) of his net income.

5- Exemption from customs taxes and other fees imposed on imported tools, machines, equipment, production supplies and cars, as well as gifts and aid received from abroad, by a decision of the Prime Minister based on the proposal of the competent minister and the presentation of the Minister of Finance, provided that these things are necessary for the NGO’s basic activity.

It is prohibited to dispose durable objects, including those determined by a decision of the competent minister in agreement with the Minister of Finance, before the lapse of five years, unless the taxes and customs duties due thereon are not paid.

6- NGOs’s consumption of water, electricity and natural gas will be treated as domestic consumption, provided that a certificate is issued by the competent ministry not to engage in a commercial activity.