No prejudice to exemptions contained in Egypt's agreements concluded with foreign countries: Min

CAIRO – 18 August 2020: Minister of Finance Mohamed Ma’it affirmed Tuesday the government's commitment to implementing the provisions of agreements concluded with foreign countries or international or regional organizations, stressing that no exemptions or special transactions contained in these agreements are affected.

He said that the draft law “canceling the exemption decided on the returns of treasury bills, bonds and capital gains resulting from dealing on these bills and bonds from income tax” approved by the Parliament's Plan and Budget Committee, will not affect the exemptions established in the agreements concluded between the government and foreign countries or organizations International or regional.

He added that the draft law stipulated in its first article not to violate the provisions of agreements concluded with foreign countries or international or regional organizations, and then not to prejudice any exemptions or special transactions contained in these agreements, pointing out that the draft law provides for the abolition of any exemptions, whether for returns or capital gains resulting from investment or dealing on bonds and bills wherever they are mentioned in any of the country's laws, so that all the entities residing in Egypt from companies, bodies or government agencies are subject to income tax on returns and capital gains realized from bonds and bills.

The minister explained that the Parliament's Plan and Budget Committee ended the amendment of the exemption percentage for the proceeds of treasury bills and bonds in which the National Authority for Social Insurance invests its funds from 50 to 65 percent of the income tax value, instead of the complete exemption as it is now.

Minister of Finance Mohamed Ma’it, called earlier Tuesday 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.

Egypt calls on financiers to take advantage of tax arrear exemptions 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