RESTRICTED
WORLD TRADE G/SCM/Q2/EGY/1
15October 1997
ORGANIZATION(97-4457)
Original: English Committee onSubsidies
andCountervailing Duties
SUBSIDIES
Request from theEUROPEAN COMMUNITY
toEGYPT pursuant toArticles 25.2and25.10 oftheAgreement
Thefollowing communication, received on10October 1997, hasbeenreceived from the
Permanent Delegation oftheEuropean Commission.
_______________
TheCommunity notes thatEgypt hasnotprovided anotification ofsubsidies inaccordance
withArticle 25.2oftheSubsidies Agreement. However, theCommunity haslearned thatEgypt is
granting specific subsidies and,inaccordance withArticle 25.10, would liketobring thismatter to
itsattention.
TheCommunity requests thatthesubsidies described inthenon-exhaustive listbelow, plus
allother specific subsidies granted byEgypt, benotified inaccordance withthestandard WTO
questionnaire onsubsidies.
1. General TaxIncentives
- Exemption from taxonindustrial andcommercial profits andcorporate income tax
foraperiod offiveyears (Article 11§1Investment LawNo.230).
- Exemption from taxonindustrial andcommercial profits andcorporate income tax
foraperiod oftenyears iftheproject islocated inanewindustrial site(Article 11
§5Investment LawNo.230).
- Exemption from taxonindustrial andcommercial profits andcorporate income tax
foraperiod of12years ifthepercentage oflocalcomponent inmachinery, equipment
andoutfits shallexceed 60%(Article 11§7Investment LawNo.230).
- Exemption from stamp taxoncapital (Article 11§9Investment LawNo.230).
2. Incentives intheFreeZones
- Exemption fromcustoms taxes, consumption taxesandother taxesforgoods exported
from thefreezone(Article 31Investment LawNo.230).
- Exemption oftaxes ondividends (Article 37§1Investment LawNo.230).
- Exemption from succession tax(Article 37§2Investment LawNo.230).
3. Preferential provision ofgoods andservices (energy)