Egypt calls on financiers to take advantage of tax arrear exemptions law

CAIRO – 18 August 2020: Minister of Finance Mohamed Ma’it, called on taxpayers, financiers and others to benefit from the exemptions stipulated in the law "waiving the consideration for delay, additional tax, interest and similar non-criminal financial penalties" approved yesterday, by President Abdel Fatah Al-Sisi, to quickly pay the principal tax or fees owed to the state.

Ma’it explained, in a statement, Tuesday, that according to the provisions of the new law, the delay fee or additional tax due on these tax arrears will be waived by 90 percent, if the original tax or fees due are fully paid within a maximum period of 60 days from the date of work with the new law.

" 70 percent  will be waived if the payment is made within the next 60 days and 50 percent if the payment is made after the next 60 days, in a way that contributes to supporting the financiers, taxpayers and others, relieving their burdens, and reducing the negative effects of the emerging coronavirus, in a manner that helps speed up the collection of the state's right of late debts, and maximizing its ability to perform public services during the Coronavirus pandemic,” he added.

He stressed that the law also provides for the extension of the law on ending tax disputes in the administrative stage until the end of next December, in a way that helps in speeding up the stability of legal positions for financiers and taxpayers.

He pointed out that the specialized committees will discuss during this period the tax grievances and disputes before the courts, or the tax appeal committees of the Egyptian Tax Authority, in a way that gives the private sector a greater role in economic development.

He stressed that the law is consistent with the presidential directives to support the economic sectors affected by the coronavirus pandemic, in a way that helps the continuation of the wheel of production amid strict precautionary measures, and the retention of workers, and the presidential mandates also to strive to accelerate the pace of work in the file of ending tax disputes without resorting to the courts.