Egypt’s Textile Chamber and EOS Partner to Tighten Import Controls and Unveil New Tax Incentives
The Textile Industries Chamber of the Federation of Egyptian Industries convened with the Egyptian Organization for Standards and Quality (EOS) to establish stricter import regulations, modernize industry standards, and review new tax facilitations aimed at boosting local manufacturing.
Modernizing Standards and Import Controls
Mandating importers to clearly display their identification data on imported fabrics to ensure traceability and market transparency.
Activating Law No. 160 of 2025, which requires displaying the applied standard specification number on all circulated products.
Enhancing procedural integration between the Customs Authority and the EOS to monitor import quality and safeguard the competitiveness of domestic goods.
Digitizing registration and standard-purchasing procedures, while linking export certificates (such as carbon footprint and Oeko-Tex) to the Export Development Fund to expedite processing.
Pursuing mutual recognition agreements for quality marks with African nations to facilitate the entry of Egyptian exports into continental markets.
Mapping factory production capacities and linking them to their actual imported raw material requirements to efficiently regulate import volumes.
Key Tax Facilitations for the Industrial Sector
Accelerated Tax Refunds: Reducing the refund period for credit balances to four months. For small enterprises with a turnover under 20 million EGP (which benefit from a simplified accounting system), the period is shortened to just three months.
Exemptions and Reductions: Cutting the Value Added Tax (VAT) on medical devices from 14% to 5% to align with industrial sector treatment, and exempting transit goods services within Egyptian ports from VAT.
Bad Debts: Shortening the period required to classify a debt as bad from 18 to 12 months, requiring only a first-degree court ruling. Debts under 10,000 EGP can now be written off without legal action, provided they do not exceed 1% of the total debtors' balance.
Corporate Real Estate Taxes: Leasing administrative and commercial units is subject to a 1% effective VAT rate, whereas factories and residential units are exempt from VAT and solely subject to the real estate wealth tax. Real estate sales remain exempt from VAT, falling instead under the real estate disposition tax (for individuals) or capital gains tax (for corporations).