Egypt: Jurisdiction Update

The State Council has dispatched the new investment draft law back to the cabinet for reconsideration of its conclusions relating to some of the provisions on the bill. Article 51 of law No. 17 of 2015, states clearly that the General Authority for Investment and Free Zones (GAFI) is the only responsible party to offer available land for investment which includes representatives of the landowners in the process. The State Council added that articles 53 to 67 did not determine the entitled authority to terminate the final contract for real estate investment. The government approved the movement of tax laws, including the recent application of the Value Added Tax (VAT) Law and the Law to End Tax Disputes. In addition to drafting amendments to the Income Tax Law, in order to defer applying the tax on capital gains for three years, after the Supreme Council for Investment approved the deferment decision and added tax incentives to the Investment Law, which were approved by the cabinet. The Presidential Decree No. 89 of 2017 was issued by President Abdel Fattah Al-Sisi to establish the National Council for Payments under his chairmanship. The council will work to decrease the use of banknotes outside the banking sector, support and encourage the use of electronic payments, and develop national payment systems and their supervision frameworks to lessen the risks associated with them.
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