TAX EVASION CHARGES COULD AWAIT YOU if you are not registered for the value-added tax (VAT) by Sunday 9 October, which Al Mal says is the revised deadline for registration given the statutory deadline of 8 October falls on a Saturday. Businesses with annual sales of more than EGP 500k in the 12 months prior to the passing of the tax are required to register within 30 days of the legislation becoming law (8 September). Failure to register could ultimately result in a prison sentence of three to five years and a EGP 5,000-50,000 fine under article 67. By last month’s count, 260K businesses have been registered, with the Tax Authority expecting with 200K more to be registered by the deadline.

Lawyers are in big trouble… A survey by Al Mal found that “professional service providers” (doctors, accountants) have not been registering, with 1 out of 11 offices having registered for the VAT. Lawyers have avoided registering in protest, while accountants, naturally, have been doing a better job. It is unclear as of yet whether private medical practices will be exempt. Despite their protests and a lawsuit challenging the VAT, lawyers are obliged by law to register, said Ashraf Abdel Ghany, head of the Egyptian Tax Experts Group. The Lawyer’s Syndicate alleges its members are exempt from paying taxes under Article 198 of the constitution, which defines the profession as “Free” or “independent.” The Egyptian Council of State has set a date of 23 October to look into the case.

Deadline for the executive regs slipping? The executive regulations for the VAT will be released before the end of October, Deputy Finance Minister Amr El Monayer told Al Mal, in a vague hint at that it may not be ready with the regs on time. Tax Authority chief Abdel Moneim Mattar had hinted at a closer deadline, saying that the regulations would be released this week, as we had noted yesterday.