The Egyptian Cabinet of Ministers approved bill on incentives of projects of green hydrogen and its derivatives.<\/p>\n\n\n\n
According to the bill, the law will apply on hydrogen projects which will sign the project agreements within five years following the date in which the law will enter into force, provided that the maximum duration of the project agreement will be 50 years. The projects which will benefit from the incentives under the law will include:<\/p>\n\n\n\n
The qualified projects will enjoy a number of financial and non-financial incentives including the following:<\/p>\n\n\n\n
A tax refund of not less than 33% and no more than 55% of the paid tax according to the submitted tax reports. This tax refund incentive will not be considered as an income for tax purposes.<\/p>\n\n\n\n
The Ministry of Finance<\/a> will be committed to pay the tax refund amount within 45 days from the deadline of submitting the tax report. Delay in payment will be subject to a delay fee at the discount rate announced by the Central Bank of Egypt<\/a>.<\/p>\n\n\n\n The Cabinet of Ministers will issue the necessary decrees to regulate the categories of the incentive and the requirements for benefiting therefrom.<\/p>\n\n\n\n Equipment, machines, raw materials and means of transportation necessary for the projects will be subject to VAT at zero rate.<\/p>\n\n\n\n All imports necessary for the development of the project will be exempted from the customs duties which the Ministry of Finance will bear on behalf of the project.<\/p>\n\n\n\n Green hydrogen projects will be exempted from VAT and the registration fees applicable on its real properties. They will also be exempted from stamp duty tax and notarization fees applicable on the registration of the incorporation documents of the project company as well as its facility and pledge agreements.<\/p>\n\n\n\n A qualified project will be entitled to obtain one single license for the project under the Investment Law. The Single license covers all stages of the projects from establishing the project, building permits trough to the operation and management of the project.<\/p>\n\n\n\n A green hydrogen project will also be allowed to freely import the equipment, raw materials and spare parts necessary for the project without the need to be registered in the Importer Register. The project will also be entitled to export its products without being required to register in the Exporter Register.<\/p>\n\n\n\n In order to be eligible for the above incentives, a green hydrogen project will have to satisfy the following conditions:<\/p>\n\n\n\n Read also:<\/strong><\/p>\n\n\n\n2- 0% Rate VAT<\/strong><\/h4>\n\n\n\n
3- Customs Exemption<\/strong><\/h4>\n\n\n\n
4- Exemption from other Taxes and Fees<\/strong><\/h4>\n\n\n\n
5- Single License<\/strong><\/h4>\n\n\n\n
6- Other Regulatory Incentives<\/strong><\/h4>\n\n\n\n
Eligibility<\/u><\/strong><\/h3>\n\n\n\n
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