8 Renewable Energy Development in Egypt and Transitioning …
275
by EgyptEra. This exemption reflects the Government’s desire to generate
electricity from renewables (mainly solar) and to reduce the consumption
of electricity generated from fossil fuel.
8.3.5 Incentives and Guarantees for Renewable
Energy Projects Under the Egyptian New
Investment Law
In 2017, Egypt issued a new investment legislation no. 72 of 2017,
which cancelled and replaced the Investment Guarantees and Incentives
Law no. 8 for 1997. The aim of the new investment law is generally
to attract new investments to Egypt through offering further incentives
and guarantees for investment in some specific sectors, in addition to
removing obstacles and streamlining the procedures of such investment.
As per the Egyptian investment law, Renewable energy projects are
among the investment projects enumerated by the law that enjoys
investment guarantees and incentives offered by the new investment
law.
15 Some of the incentives for renewable energy projects are briefly
highlighted below:
• Registration of documents of incorporation of the company, loan
agreements and pledge contracts are exempted from stamp duty tax
and notary public fees for a period of 5 years from the date of
registering the company.
• Exemption from the registration fees of the land of the project.
• Application of a unified flat customs duty rate of 2% on all machines
and equipment needed for establishing the renewable energy project.
• Ability to fund the project from abroad with no restrictions and in
foreign currencies and transferring profits abroad.
16
• Furthermore, the investment law grants some special investment
incentives to projects generating renewable energy or projects
depending on it; for instance: deduction of 30% of the net taxable
profits for the first seven years of the life of the project, subject to
15 Articles no. “1” and “9” of the Egyptian Investment Law no. 72 of 2017.
16 See articles no. “6” and “10” of the Egyptian Investment Law no. 72 of 2017.
275
by EgyptEra. This exemption reflects the Government’s desire to generate
electricity from renewables (mainly solar) and to reduce the consumption
of electricity generated from fossil fuel.
8.3.5 Incentives and Guarantees for Renewable
Energy Projects Under the Egyptian New
Investment Law
In 2017, Egypt issued a new investment legislation no. 72 of 2017,
which cancelled and replaced the Investment Guarantees and Incentives
Law no. 8 for 1997. The aim of the new investment law is generally
to attract new investments to Egypt through offering further incentives
and guarantees for investment in some specific sectors, in addition to
removing obstacles and streamlining the procedures of such investment.
As per the Egyptian investment law, Renewable energy projects are
among the investment projects enumerated by the law that enjoys
investment guarantees and incentives offered by the new investment
law.
15 Some of the incentives for renewable energy projects are briefly
highlighted below:
• Registration of documents of incorporation of the company, loan
agreements and pledge contracts are exempted from stamp duty tax
and notary public fees for a period of 5 years from the date of
registering the company.
• Exemption from the registration fees of the land of the project.
• Application of a unified flat customs duty rate of 2% on all machines
and equipment needed for establishing the renewable energy project.
• Ability to fund the project from abroad with no restrictions and in
foreign currencies and transferring profits abroad.
16
• Furthermore, the investment law grants some special investment
incentives to projects generating renewable energy or projects
depending on it; for instance: deduction of 30% of the net taxable
profits for the first seven years of the life of the project, subject to
15 Articles no. “1” and “9” of the Egyptian Investment Law no. 72 of 2017.
16 See articles no. “6” and “10” of the Egyptian Investment Law no. 72 of 2017.