Egypt’s Minister of Finance Mohamed Maait has issued a decree that introduces new tax facilities for finance leasing companies to revitalise the non-banking financial market, a statement by the ministry read on Sunday.
The new facilities, according the finance ministry’s statement, include deducting interests of loans and cash advances from companies’ net profits instead of calculating them not more than four times the ownership rights that involve paid-in capital, reserves, retained earnings, minus retained losses.
It aims to provide the required funds for purchasing commodities and services for consumption purposes in addition to stimulating buying and selling in the domestic market.
On 23 March, President Abdel-Fattah El-Sisi ratified law no.18 for 2020, which organises finance leasing activity in the domestic market after parliament’s approval.
The law gives the Financial Regulatory Authority (FRA) the authority over companies practising finance leasing activity and issue licenses for new ones.