In its new project to amend the Investment Law, the government has introduced a new proposal to extend the incentives provided for in Article 11 of the current draft law issued No. 72 of 2017, for other periods, the total of which does not exceed nine years instead of only 3 years since the start of the executive regulations of the law as in force. Currently in the second item of the first paragraph of Article No. 12 of the law.
Article 12 of the current law states:
For investment projects to enjoy the special incentives stipulated in Article 11 of this law, the following conditions must be met :
That a new company or facility is established to establish the investment project .
- The company or establishment should be established within a maximum period of three years from the date of enforcement of the executive regulations of this law, and it is permissible by a decision of the Council of Ministers and based on the proposal of the competent minister, to extend this period for one time .
The company or establishment maintains regular accounts, and if the company or establishment operates in more than one region, it may benefit from the percentage prescribed for each region, provided that each region has separate accounts .
- None of the shareholders, partners, or owners of establishments has provided, contributed, or used in the establishment, establishment or establishment of the investment project enjoying the incentive, any of the material assets of a company or establishment existing at the time of the provisions of this law, or liquidated that company or establishment during the period indicated. Clause 2 of this Article for the purpose of establishing a new investment project that enjoys the aforementioned special incentives. Violation of that results in forfeiting the enjoyment of the aforementioned incentive and the obligation of the company or establishment to pay all tax dues.
Expansions of already existing investment projects may enjoy the incentives stipulated in Articles 11 and 13 of this law. Expansions in the provision of this Article are intended to increase the capital used by adding new assets that lead to an increase in the production capacity of the project, all in accordance with the rules and conditions determined by a decision issued by Council of Ministers.
The first article of the government’s draft to amend the law included the replacement of the investment law in the text of Article (12/first paragraph - clause 2) allowing the Council of Ministers, based on the proposal of the competent minister, to extend the work of the special incentives stipulated in Article (11) of the law for other periods Their total does not exceed nine years, which means, in practice, that it is permissible to extend these incentives until 2029.
0 Comments