Egypt launches 1st phase of new tax facilities measures

Ahram Online , Wednesday 11 Sep 2024

Egypt launched the first phase of its new tax facilities measures in a press conference held by Prime Minister Mostafa Madbouly and Minister of Finance Ahmed Kouchouk on Wednesday.

Mostafa Madbouly
Egyptian Prime Minister Mostafa Madbouly and the Minister of Finance, Ahmed Kouchouk during the press conference on Wednesday 11 September ,2024. Photo courtesy of Egyptian cabinet.

 

This move is the first step to fix and enhance the relationship between investors and the tax authority, which is a priority in the upcoming phase, according to Minister Kouchouk.

 “We have begun studying the real challenges, and our decisions reflect our seriousness in fulfilling the needs of our partners in the tax community,” Kouchouk said.

“We are continuing with the tax hearing sessions,” he added.

The finance minister stated the following tax facilities measures:

-There will be a simplified and comprehensive tax system to those whose annual volume of business does not exceed EGP 15 million from small and micro enterprises, including entrepreneurs, freelancers, and professionals.

-There will be stimulation to merge the informal economy projects into the formal economy through facilitation packages.

-Financiers can submit and modify tax reports for 2021/2023 without penalties.

-Tax reports will be simplified, with an expansion in the sampling inspection system to include all tax offices.

-Tax inspections will depend on the risk management system for all financiers in all missions and areas.

-A limit has been put for penalties such that it does not exceed the original amount of the tax.

-Speeding up the process of fending disputes and accumulated tax files to stimulate economic activity.

-Raising the exemption threshold for 'transfer pricing studies' for international companies to EGP 30 million.

- There will be a new central settlement mechanism for investors.

- The VAT refund system will be simplified.

Kouchouk added that the ministry refunded EGP 3 million to financiers under the VAT refund system.

He added that the ministry’s goal in the future is to refund an amount five times more than what has been refunded under the VAT refund system last year.

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