As many sectors in Egypt have been badly affected by the pandemic of Covid-19, the Egyptian government has taken many precautionary measures to face the repercussions and consequences of Covid-19 to support the affected sectors and businesses. In this regard, the President of the Arab Republic of Egypt has approved a new Law No. 24 of 2020 adopting a number of financial rules for dealing with the repercussions of Covid-19 (the "Rules").
The said Rules grant all entities working in the sectors that have been badly affected by Covid-19 a number of benefits and exemptions to support them to overcome the repercussions of Covid-19 noting that the Cabinet should issue a Decree to name these sectors ("Affected Sectors").
Furthermore, according the Rules, all entities working in the Affected Sectors, and providing that these entities do not lay off any of their employees and/or reduce the salaries of such employees, shall benefit or continue to benefit from the provisions of the said Rules.
It is to be noted that it is still possible for the entities that have previously laid off their employees return them back to work in order for them to benefit from the provisions of the said Rules.
According to the Rules, these entities may be granted the right to postpone the payment of income tax, social insurance contribution as well as all or some of the due real estate taxes that are due on the licensed real estates that actually used in the Affected Sectors for a period not exceeding three (3) months subject to renewal for a similar period.
The Rules grant these entities the right to pay the administrative services fees in installments for a period not exceeding three (3) months subject to renewal for a similar period.
It is worth noting that the Rules entered into force in Egypt retroactively as of March 31, 2020.
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