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On August 16, 2020, the Government of Egypt issued Law No. 173 for the year 2020. The law was issued to waive penalties for delayed tax payments and interest on tax differences and penalties for delayed payments.
Main points & implementation:
The law will come into effect for the following:
• Customs
• Stamp Duty Tax
• Income Tax
• Value Added Tax/Sales Tax
• Real Estate Tax
• Country Development Resource Fund
The law will be implemented as follows:
• 100% of penalties for delayed tax payments and interest on tax differences and penalties for delayed payments will be waived if all tax differences have been paid before the issuance of this law.
• 90% of penalties for delayed tax payments and interest on tax differences and penalties for delayed payments will be waived if all tax differences are paid within 60 days of the issuance of this law (October 15, 2020).
• 70% of penalties for delayed tax payments and interest on tax differences and penalties for delayed payments will be waived if all tax differences are paid within 60 days after the end of the period stated in the point above (December 14, 2020 Before).
• 50% of penalties for delayed tax payments and interest on tax differences and penalties for delayed payments will be waived if all tax differences are paid within 60 days after the end of the period stated in the point above (February 12, 2021).
The law does not enable taxpayers to request refunds on previously closed tax disputes in which delayed payment penalties and interest on tax differences and delayed payment penalties were placed.
For further information or assistance regarding the application of Law No. 173, please contact the Director of our Cairo office, Mr Beshir Noureldin at beshir.noureldin@eurofast.net
Eurofast is a regional business advisory organisation employing local advisors in over 22 cities in South East Europe & Middle East . The Organisation is uniquely positioned as one stop shop for investors and companies looking for professional services in South East Europe & Middle East.
Beshir Noureldin
Director, Eurofast Egypt
beshir.noureldin@eurofast.net
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