Based on the Investment Law no. 8 of 1997 there is a system of free trade zones in Egypt which allows to store imported goods without tax consequences within the free zone (no GST or custom duty will be due on sales within the free trade zone). Egypt has a general sales tax system which works similar as known VAT systems in Europe. When the goods are imported from the free zone into the country GST and custom will apply. Importation for trade purposes into Egypt is only allowed for companies which are 100% owned by Egyptian shareholders. Egyptian free zone companies are not subject to corporate income tax on the activities approved and licensed by the General Authority for Investment (“GAFI”). These companies are also exempt from GST for this type of activities.