Dr. Saad stated that, without affecting benefits provided
under other laws, associations, civil society organizations, and federations
enjoy several advantages. Associations are exempt from registration and
recordation fees for all types of contracts in which they are a party. This
includes property contracts, mortgages, and other real rights agreements. They
are also exempt from notarization fees for signatures.
He confirmed that associations are exempt from current and
future taxes and stamp duties applied to contracts, powers of attorney, deeds,
printed materials, records, and other documents under their responsibility.
Dr. Saad noted that buildings owned by associations are
exempt from all real estate taxes. Ownership is limited to properties necessary
to achieve the association’s objectives. Any change in the property’s activity
requires approval from the competent minister.
He explained that donations made to associations are
deductible for the donor’s income tax, up to 10% of their net income.
Saad added that associations are exempt from customs duties
and other fees on imported machinery, equipment, production supplies, vehicles,
and gifts or aid received from abroad. These exemptions are granted by Prime
Minister’s decree with approval from the competent minister and the Minister of
Finance. The items must be necessary for the organization’s primary activities.
He emphasized that disposal of durable items specified by a
decision of the competent minister in agreement with the Minister of Finance is
prohibited for five years. This applies unless all applicable taxes and customs
duties are paid.
Saad concluded that associations’ consumption of water,
electricity, and natural gas is treated as domestic usage. A certificate from
the competent ministry confirming that no commercial activity is conducted must
be obtained.