Professor Salah Youssef, advisor to the head of the Egyptian Tax Authority, confirmed, The Authority is witnessing deliberate amendments to the tax laws, To be able to control the tax community, and eliminating the informal economy.
This came during a symposium organized by the Egyptian-African Businessmen Association, In cooperation with the Egyptian Tax Authority, On the amendment of the value-added tax law, Via the Zoom app.
Mr. Salah Youssef started the speech welcoming the audience, He spoke about the beginning of the issuance of the value-added tax law on 7/9/2016, He added that it was implemented from the day following its publication in the Official Gazette on 9/8/2016. And by Law No. 67 of 2016, Until it was amended by Law No. 3 of 2022 on 27/1/2022.
He stressed that the aim of Law No. 3 is to amend some errors resulting from the application of the old law, And that is after the authority studied all the observations that appeared by relying on the old law.
It is worth noting that the amendments come within the framework of what Article 38 of the Constitution stipulates of the state’s obligation to improve the tax system. And adopting modern systems that achieve efficiency, ease and accuracy in the collection of taxes. To ensure the development of state resources, achieving social justice, and economic development, It also aims to keep pace with the changes and developments in the Egyptian economy. Supporting investors and overcoming the obstacles they face. Supporting the investment process in the capital market and increasing the demand for trading.
Salah Youssef said, “His Excellency the Minister has given us directions, We follow certain principles, The first is not to change the registration limit, which is 500,000 pounds, since 2016. secondly: The tax rate of 14% has not changed since 2017, Third: not change the list of exemptions, Fourthly: Not to impose a new tax to lessen the burden on the consumer.
He added that the spread of electronic commerce was a major reason for amending the value-added law. Where there are services that come from abroad, Most of them were intangible services, In other words, it does not pass through customs outlets. and therefore there was no control over those services, A simplified supplier registration system was introduced. Where the registration of persons who are not residing in the country and who are not registered when they send services or goods into Egypt, Under the simplified supplier registration system; To prevent the entry of services or goods into Egypt without collecting taxes.
An advisor to the head of the IRS explained, That Article 22 – Paragraph 4 has been amended, which states that the discount does not apply to exempt goods and services, It does not apply to goods and services that include tax in the cost. A new text has been added regarding the non-applicability of the tax deduction for cases of simplified supplier registration. Where this system will be like judgmental price.
He added that Article 27 of the law has been added, allowing the exemption of some goods and some services from tax. Which previously provided that some goods may be exempted from tax in the following two cases:
- Gifts, donations and gifts received for the state’s administrative apparatus.
- And what is imported for scientific and educational purposes.
He explained that the new law added public bodies to these exemptions, and all this in order to simplify and facilitate the registrants, So, in the end, it is up to the consumer. He added that with regard to Article 30 of the tax refund, The tax is refunded within 75 days from the date of the registrar’s submission of documents and the application for registration. The Tax Authority returns the tax in the following cases:
- Tax refund on inputs.
- Wrongly collected tax.
- Refund of the permanent balance that has passed more than 6 consecutive tax paragraphs.
At the end of the meeting, the advisor to the head of the Egyptian Tax Authority thanked the attendees, The Egyptian-African Businessmen Association thanked His Excellency, To explain the amendments to the new value-added law.