president"Taxes" It emphasizes interest in developing disciplined tax policies that are more effective in attracting investments
The head of the Egyptian Tax Authority, Rasha Abdel-Al, stressed the Minister of Finance’s great interest in developing disciplined and clear tax policies that have a greater impact on attracting foreign and local investments, and are based on fair competition among all parties.
Abdel-Al said in press statements today, Friday, to explain the first package of tax facilities, announced by the Minister of Finance, “We are moving at a steady pace towards maintaining tax stability, by building a balanced tax system that is strongly supportive of the business and investment community.” The catalyst for economic growth.”
She added, “We are committed to continuing to improve and develop the tax system in a way that serves the interest of financiers and investors, and enhances the investment climate in Egypt.”
< p>She explained that from the first moment of announcing the tax facilitation package, we have had sincere intentions and determination towards change for the better to reach a true partnership that reflects the spirit of belonging and true knowledge of the important role that tax revenues play in supporting the state’s resources.
She indicated that the beginning was to develop a systematic and strategic plan that ensures the continuity of the reform approach according to fixed steps, leading to the best international practices that gain the satisfaction of financiers and investors and are undoubtedly reflected in their support (success partners), which was represented in 20 tax reforms that were completed. Conducting a community dialogue regarding it with many representatives of the business community, such as the Federation of Industries, the Federation of Chambers of Commerce, a number of meetings with major accounting offices, and a number of meetings with representatives of professional associations, and the Micro, Small and Medium Enterprises Development Agency, where all community comments, opinions, and recommendations were listened to. Business during the community dialogue sessions, and the details of the tax facilitation initiative were modified to become more responsive to the requirements of the business community, financiers and taxpayers.
She continued that the tax facilitation package that was announced is a first package. It is part of a strategy that has been developed and will be implemented in stages to bring the tax system to a fair and stable system in which there are no challenges facing the tax community, because the taxpayer is a partner of the interest, and we are always keen to provide the necessary assistance and support to him and remove any tax challenges he faces.
The head of the Tax Authority reviewed many of the objectives of tax facilitation, such as reducing the burden on taxpayers, attracting new financiers, supporting liquidity among financiers, unifying, simplifying and improving the tax services provided, working to end all old files and disputes, and putting An integrated system for financiers whose annual business volume does not exceed 15 million pounds, including all tax bases.
She indicated that the system contains a set of incentives, exemptions, and facilities that contribute to clarity of vision and definition of rights. And obligations and encourage everyone to join this integrated system, which is based on several axes, such as exemption from stamp tax, registration and documentation fees, the tax on capital gains resulting from the disposal of fixed assets, and from the dividend tax, as well as exemption from applying the discount system or advance payments. This is not Not only will the system grant simplified tax treatment for income tax (peremptory or proportional), and the system will ensure that the obligation to submit value-added declarations is limited to four declarations during the year, and the obligation to submit wage and salary tax declarations is also limited to the annual settlement declaration, noting that it is the first tax examination after Five years, in addition to not claiming any tax dues for previous periods for those who initiate registration with the authority.
She pointed to the activation of the central clearing system to facilitate the financiers and those registered in making the necessary adjustments to their balances. According to the investor’s priorities and achieving the necessary liquidity to carry out their activity, while studying the expansion of its application to include many administrative bodies in the country, such as the amounts of export support and debts of the financier to the Tax Authority, and setting a maximum limit for delay fines for the purpose of ending the largest possible number of disputes due to the presence of large debts that are delay interest, In addition, the taxpayer or taxpayer will not be burdened with tax burdens resulting from the Authority’s delay in tax examination procedures.
It confirmed the opportunity for taxpayers who were unable to submit tax returns on the legal dates in 2020. Until 2023, by submitting it within a specific period of time without being subject to the legally prescribed penalties, which represents an opportunity to correct the situation and voluntarily comply with the provisions of the tax laws.
She indicated that the situation should be reconciled before undergoing the examination process. By providing the possibility for taxpayers to submit amended tax returns for the year 2020 until 2023 in the event of an omission, error, or omission of data that was not included in the original return without being subject to the legally prescribed penalties, and also renewing the work of the law on ending tax disputes, with the Minister of Finance authorized to extend the work. By law for other periods.
She explained that it came within the facilitations; Simplifying and increasing the effectiveness of the value-added tax refund system in order to quickly provide the necessary financial liquidity for projects. This comes through simplifying procedures to quadruple tax refund cases, increase the number of beneficiaries, and reduce the time period required to complete the refund process.
She indicated that the limit of the obligation to submit a study of pricing of transactions between related persons was raised to 30 million pounds instead of 15 million pounds annually, in order to reduce the burden on a larger category of financiers, and to cancel the obligation to submit the main file. And the local file and the report of each country separately, in accordance with the provisions of the Unified Tax Procedures Law, in an effort to enable them to expand and increase the volume of their business.
She pointed to improving the system of tax fatwas, in order to unify the fatwas. And tax opinions, in addition to preparing guides with established principles to be a reference for all parties concerned with the tax system, noting the importance of publishing these guides through the Authority’s website to ensure that the necessary awareness reaches all parties.
The head of the Tax Authority confirmed strengthening the role of the advance opinion system, which according to the law gives the authority to issue binding decisions regarding transactions with future tax implications. Indeed, steps have been taken towards transforming the advance opinion committee into a permanent unit affiliated with the office of the head of the tax authority, which will contribute to facilitating transactions and clarifying The tax position is clearly and transparently.
She pointed to increasing the effectiveness of the Investor Support Unit by switching to an automated work system to receive complaints and inquiries, and providing the unit with qualified technical and administrative elements to ensure accuracy and speed of work. She also stressed the necessity of continuous coordination with the relevant authorities, and providing updated information to investors through multiple channels.
She explained that there are a number of additional facilities that aim to reduce the burdens on financiers, Among them are the simplification of tax returns, the expansion of the sample examination system, and the advance publication of documents required for tax examination. She noted that unsupported documentary declarations will be gradually canceled starting in 2025 for legal persons and 2026 for natural persons, while seeking to achieve justice in the reconciliation mechanism regarding non-compliance violations. By submitting returns.
She emphasized attention to the human element, by improving the work environment within the authority, as well as approving an evaluation and incentives system for employees and raising the efficiency of tax officials through advanced training plans and education platforms. Electronic.
