Egyptian pounds (Photo: AP)
A new amendment imposed by Egyptian President Abdel-Fattah El-Sisi on Egyptian income tax law now requires Egyptian corporations to pay their taxes electronically.
“The decision will improve public debt service management by helping decision makers develop tax revenue flows to the treasury,” finance minister Hany Kadry Demian said in a press release.
Electronic tax collection will also decrease the costs of public finance management and will reduce the time needed for tax collection according to the minister.
Executive regulations for the law will set a transitional period for the implementation of the new system that will also be extended to sales tax payment in the future.
Tax payment via checks takes anywhere from a few days to one month which negatively affects the cycle of tax collection according to Ossama Tawakol, head of the top taxpayers' department.
“The ratio of taxpayers using electronic payment is very low as most people prefer to pay via check,” he said.
The corporate tax income revenue target for fiscal year 2014/2015 is LE126 billion (around $17 billion).