Wednesday 18/February/2026 – 03:50 PM
The Egyptian Customs Authority issued Tariff Circular No. 11 of 2026, based on… IRS bookTo resolve the dispute over the tax treatment of nurseriesHatchery machines.
The circular confirmed that applying a 5% tax (deterministic category) on this equipment is consistent with the law, especially in cases of poultry production, where it is used to produce “one-day chicks,” an activity that does not benefit from the suspension of tax payment allocated exclusively to machines and equipment used in “industrial production.”
Customs determines the tax treatment of imported incubators and poultry hatching machines
The circular, which was viewed by Cairo 24 and is based on Ministerial Resolution No. 115 of 2023, explained that the suspension of tax payment for one year is limited to production lines and equipment proven to be used in industrial activity. If there are no approved documents proving this activity, or if the use of the equipment is not limited to the production of taxable goods, it is subject to tax at the general rate or table tax categories, as the case may be, with the possibility of making subsequent adjustments upon proof of use.
Determine the difference between industrial and non-industrial production
The Tax Authority has established a decisive criterion to distinguish between industrial production and other activities, as it required the issuance of an official letter from the General Authority for Industrial Development to define “industrial production” as the technical body supervising this activity in Egypt.
This clarification aims to prevent confusion in customs treatment and ensure unification of the rules applied across the various ports, especially at the Dekheila Customs Complex, which witnessed questions about the suspension of the tax under a pledge.
This publication comes to enhance tax discipline and protect the rights of the public treasury, while clarifying the legal paths for importers and companies working in poultry production.
Under the new rules, companies must submit technical documents approved by the competent authorities if they wish to benefit from the benefits of tax suspension, to ensure that the equipment is used for legally specified industrial purposes and to avoid disposing of it for purposes other than those designated for it during the exemption period.
