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Thursday, 1 December 2016

All bank transactions might be VAT-exempt

The Central Bank of Egypt has reportedly recommended that all bank activities be exempt from the value-added tax (VAT). The CBE reportedly offered its view in response to inquiries by the Finance Ministry, a government source told Al Borsa. The CBE feels that it is incorrect to distinguish between banking services and what the Finance Ministry classifies as ‘non-banking services,’ which are not VAT-exempt. These include fees on safety deposit boxes and trustee services. The matter has been a contention point between banks and the Finance Ministry.

The Finance Ministry’s inquiries come as it is still drafting the VAT’s executive regulations, said the official. The reason behind the almost two-month delay: accountants and lawyers. The ministry plans to meet with them next week with a finalized draft of the regs and hopes to see the whole procedure completed by the end of next week.

Number of days the executive regulations for the value-added tax act are overdue: 53. That’s one month and 22 days.

New, revised deadline for the executive regulations for the value- added tax: Next week, insha’Allah.

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