Government-Support

Government Support
 

Government of Egypt [GoE] is constantly improving the business-enabling environment. The Ministry of Communications and Information Technology and all its affiliate bodies and partners work in tandem to promote and support the development of the IT industry in Egypt.

The IT Industry Development Agency (ITIDA) is the executive IT arm of MCIT and a one-stop shop for foreign IT & business services companies. ITIDA stimulates, orchestrates and spearheads the process of developing the local IT industry. The Agency leaves no stone unturned to boost investment, generate economic growth, create more jobs, and unlock entrepreneurial potential.

ITIDA’s Focus Areas:

 
Talent Development
 
Technology Innovation & Entrepreneurship
 
Local Companies Development
 
FDI Attraction & Support
 
Business Ecosystem Development

In ITIDA, we believe that a business conducive environment is a key driver of investment climate. We provide a full suite of incentives and other support to enable a seamless investor journey. Our Investment & International Business Development personnel provides 360-degree support throughout the investor journey to help you maximize the benefits of investing in Egypt.








Financial Incentives

In Jan 2022, ITIDA revised its incentive scheme. A quantum of incentives in the form of annual reimbursement on OPEX per new hire with a declining scale between 2022 and 2026 and are tiered according to the scale of hiring as shown in the tables below.

gsupport_new.png
 
The amount of incentive in 2022 is in the range of EGP 10,000 to 32,000 per new hire depending on the type of services delivered offshore
 
The quantum of incentive applicable in a particular year = (Amount of incentive in 2022 × % of 2022 incentive offered in that particular year)
 
Incentive is offered for a period of 3 years; i.e. a new job created in 2022, would be incentivized till 2024
 
Incentive to be disbursed when the minimum threshold is achieved
 
Incentives are applicable for foreign and local companies, on new establishments as well as expansions, provided that services are being exported
 
It is worth mentioning that there is 0% VAT on export oriented services according to Egypt’s laws



Government Support for Electronics Design & Development
 
30% to 50% Corporate Tax reduction; up to 80% of total paid capital
 
Customs and tax exemption on machines, tools, and equipment in Tech Parks
 
Up to 50% subsidy on cost for Design Offices and Manufacturing in Tech Parks
 
5% to 10% export overhead rebate, based local-value 50% freight cost subsidy to Africa
 
15% local product cost advantage for governmental purchases
 
Fund over 3 years of HR development for enterprise staff (local/overseas); up to $10K/person
 
Professional and vocational training programs
 
Grants for R&D projects up to $320K 

Further Incentives for Knowledge City Innovation Center
 
Funding capacity building for new employees in amounts up to $10K per employee.
 
3-year exemption from rental fees, internet costs and utilities. After 3 years, companies will enjoy highly subsidized rental fees for two years.
 
Financing the transportation cost of new/existing employees to the Knowledge City.
 
Companies can enjoy the Center laboratories services at no-profit cost.
 
Incubation of startups at no cost in addition to receiving $65K grants.
 
Dedicated customs port for legislation issues.