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Sunday, 18 December 2016

EGPC rescues IOCs from 5% surtax

The Tax Authority has notified EGPC that it must pay EGP 2.5 bn in back taxes owed from the scrapped 5% surtax on income over EGP 1 mn it had imposed on E&P companies back in 2014, Al Borsa reports. The EGPC had stepped in to pay the surtax on their of IOCs after as many as 30 E&P companies had objected to paying the surtax on the grounds that a special income tax system had been already been set for the industry. Under this system, E&P companies pay a 40.6% income tax on top of a 22.5% general tax on corporations. Sources said that the taxman is also after the banks, having asked NBE, Banque Misr, and AAIB to pay a total of EGP 817 mn owed as a result of the surtax.

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