We would like to announce about the new initiative of the government related to subsidy refund on exportation. As you may know, there is some obstacles currently to process the subsidy refund payment from the government which represents a real matter in terms of cash liquidity.
Accordingly, there was recently a new initiative approved by The Prime Minister to process the subsidy refund old balances for payment on five installments during the next five years under some conditions. The most important conditions are:
1.The company should be complied with all the governmental due amounts within the deadlines (such as taxes, customs and social insurance..., etc.) in the previous periods
2.The company should have a clear expansion plan that will increase its investment volume in Egypt through having new production lines and hiring new employees. Also, all the aforementioned procedures should be supported by documents.
How Andersen Can Help:
We have many cases that we helped our clients using the benefits of this initiative and they have signed agreement with the government already. They are expecting the first installment of subsidy refund on exportation soon. In addition, we also have very good connection in this regard with the government to finalize this fast.
Responsibility and Commitment:
Andersen Tax & Legal Egypt's tax team has prepared this summarized report to illustrate the application of the subsidy refund based on similar cases. Efforts have been combined to produce this report with clear and accurate content however this report aims only to spread general information and should not be treated as a legal document or a document that can be used for decision making, or for issuing specialized consultations. Please contact Andersen Tax & Legal Egypt for tailor made solutions.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.