Discussed: Egypt's law supports civil institutions with exemptions package

CAIRO - 16 November 2024: Egypt's Civil Work Regulation Law granted a set of advantages to civil associations and institutions.

 

In this regard, Article 17 of the law stipulated that, without prejudice to any advantages stipulated in another law, civil associations, 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 paying in all types of contracts to which it is a party, such as: property contracts, mortgages or other real rights, as well as from signature certification fees.

 

2- Exemption from taxes and stamp duties currently imposed, and also those imposed in the future on all contracts, powers of attorney, documents, printed papers, records, etc., the burden of which falls on the association.

 

3- Exemption of 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 permitted to change the activity except with the approval of the competent minister.

 

4- Donations made to associations shall be considered a tax on the donor's income not exceeding (10 percent) of his net income.

 

5- Exemption from customs duties and other fees imposed on imported equipment, machines, devices, 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 items are necessary for its primary activity.

 

It is prohibited to dispose of durable items, which are determined by a decision of the competent minister in agreement with the Minister of Finance, before five years have passed unless the taxes and customs duties due on them are paid.

 

6- Water, electricity and natural gas consumption shall be treated as household consumption, provided that a certificate is issued from the competent ministry stating that no commercial activity is being practiced.