Egypt issues executive regulations of Unified Tax Procedures Law

Daily News Egypt
5 Min Read

Egypt’s Minister of Finance Mohamed Maait has revealed that the executive regulations of the Unified Tax Procedures Law have been issued. 

These include new advantages for financiers and taxpayers that define their rights and contribute to facilitating procedures. The issuance is expected to achieve an unprecedented legislative shift, and boost Egypt’s tax management system on a par with those of developed countries.

In a statement issued on Sunday, Maait said that the aim is to integrate, simplify, and automate the procedures of: linking and collecting income tax; value-added tax; state financial resources development fees; stamp tax; and any other similar taxes. 

This comes in line with the national project to modernise and automate the tax management system, which is based on building an integrated digital system to provide electronic services to financiers and taxpayers.

Maait added that this law and its executive regulations contribute to fully laying the foundations for the unified tax procedures to be mechanised. This is to ensure that electronic means are supported: in the communication with financiers and taxpayers; in tax records and books; in the procedures for tax assessment and collection; and ways to appeal against tax assessment forms. 

The minister pointed out that all financiers and taxpayers will be obliged to use electronic documents, whether invoices, professional receipts, or sale receipts given to final consumers. 

This process of digitisation includes all the steps, from submitting a request to register at the Egyptian Tax Authority (ETA), to requesting an electronic tax statement. It also covers tax books, records, electronic correspondences, and electronic tax collection.

He explained that the executive regulations of the Unified Tax Procedures Law include more than five articles that define the rights of financiers and taxpayers at the ETA. 

They include allowing taxpayers to view their tax file, as well as attend the field examination, submit notifications of opening branches or adding stores or other activities to any industrial, commercial, or professional activity, or any other activities generating taxable revenues. 

These articles also allow taxpayers to obtain a prior decision from the tax authority in cases of transactions that do not have prior tax rules and were not specified by law. 

In addition, taxpayers can request reconciliation in their appeal against committee decisions before a hearing is scheduled to end the dispute with the concerned Tax Office. They will be allowed to state the reasons and justifications for the appeal against the tax assessment form.

Maait pointed out that the executive regulations also allow for the reconciliation of tax violations, such as failure to notify within the legal time, failure to register on the electronic blog, or a delay in the submission of tax statements.

He said that the tax returns on the payments made under the tax account are calculated at the credit and discount rate announced by the Central Bank of Egypt (CBE). 

If a request for refunding a tax paid by mistake was submitted, and no response was made within 45 days, a return would be calculated on these amounts due on financiers at the credit and discount rate announced by the CBE, in addition to 2%. 

The executive regulations allow taxpayers and financiers to submit tax notifications such as notification of cessation of activity, change of legal form, or adding a branch or store via the IRS electronic portal. 

The ETA shall accept data and information in any language, and request its translation from an accredited body into Arabic.

Maait stressed the tax authority’s commitment to maintaining the confidentiality of tax and technical data and information of financiers or taxpayers. It will also be responding by any electronic means to any inquiries, whether related to the application of the law or a tax situation.

He added that a unified tax registration number is assigned to each financier or taxpayer. It includes all types of taxes the person or entity is subject to. 

The authority, the financier or taxpayer, and other entities and establishments are obliged to use this number for all transactions, which are used on all notifications, records, documents, and invoices. This will simplify procedures and contribute to strengthening governance.

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