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A new law, Law 83/2002, concerning Special Economic Zones (SEZs) has been
approved which seeks to establish economic zones that would enjoy considerable
autonomy and a bureaucracy-free environment. SEZ - based exporters are granted
Egyptian certificates of origin usable under international trade agreements.
The laws offers:
- 10% tax rate
- 5% labor tax
- Exemption from sale taxes and custom duties.
- The tax rate applicable on all activities within the special economic zones
is 10%, and investors in the SEZ's benefit from flexible administrative and
labour regimes.
- Exemption from taxes and fees on all imported materials and equipments, by
working companies in the area.
Each zone is self-governing through an independent authority with much greater
authority granted to the Board of Directors of each SEZ. One zone has been
designated as SEZ ( the North-West Gulf of Suez ).
The North-West Suez Special Economic Zone is the first zone created under the
new law. It will serve as a model for future development of other SEZs in
Egypt. The zone is situated adjacent to the Port of Sokhna, about 45 km
southeast of Suez City, close to the Southern entrance of the Suez Canal.
The Government has created a new authority to manage the development and the
operations of the Suez Special Economic Zone. Many companies have started
production operations, including fertilizers, iron and steel, pharmaceuticals,
building materials and petrochemicals.
The SEZ will act as a one-stop-shop for:
- Custom administration bureau.
- Tax administration bureau.
- Dispute settlement centre.
investment.gov.eg
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