Overview of significant changes to Egypt’s tax laws
Renewal of the rules for the settlement of tax disputes.
Amended rules for the settlement of the taxpayer obligations.
Renewal of law for the settlement of tax disputes
The Egyptian parliament has issued a new law2, which renewed the law1 for the settlement of tax disputes between taxpayers and the Egyptian Tax Authority, with the goal of reducing the number of outstanding tax disputes. Highlights of the new updates are as follows:
Re-applying the provisions and procedures for settling tax disputes for two years. Additionally, the formed committees will continue, as per the provisions of the mentioned law, to study the pending applications. In addition, the said committees will resolve the new applications submitted after the issuing date of this law.
All outstanding tax disputes or disputes brought before different levels of courts, tax appeal committees, conciliation committees and grievance committees between the Egyptian Tax Authority or Property Tax Authority and the taxpayers or responsible may be finalized, whenever they arise from the application of the provisions of the tax laws and applied by both mentioned tax authorities regardless of the status of litigation or appeal.
Amended rules for the settlement of the taxpayer obligations
The treatment of the settlement of the taxpayer’s obligations included in the Income Tax Law3 has been re-ordered. The delay fines on the delayed amounts shall be treated the same as the tax connected thereto. Moreover, the settlement of the amounts to be paid to the Tax Authority for fulfilling the taxpayer’s obligations shall take place in the following order:
1- Administrative and legal expenses;
2- Taxes withheld at source;
3- Taxes payable; and
4- Delay fines.
1 Law No. 79 for the year 2016 on the Settlement of Tax Disputes, which was published in the Official Gazette on 26 September 2016 and came into force as of the date following its publication.
2 Law No.14 for the year 2018 on the Settlement of Tax Disputes, which was published in the Official Gazette on 27 February 2018 and came into force as of the date following its publication.
3 Law No.29 for the year 2018 on the Settlement of Tax Disputes, which was published in the Official Gazette on 23 April 2018 and came into force as of the date following its publication
Surce : KPMG