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Wednesday, 17 October 2018

Freezone companies are trying to wiggle out of paying into Universal Healthcare scheme

** #5 – Freezone companies are trying to wiggle out of paying into Universal Healthcare scheme: A number of freezone companies are objecting to paying the 0.25% tax on sales revenue to fund the new universal healthcare scheme, as stipulated under the Universal Healthcare Act, unnamed company representatives said. By their logic, freezone companies are exempt from paying taxes and fees under the Investment Act, which means that they should also be exempt from paying the 0.25% tithe. A government source noted, however, that the levy is not a tax that can be waived — it applies to all companies operating in Egypt, regardless of whether they’re onshore or offshore for customs purposes. The act — part of the Sisi administration’s EGP 600 bn health coverage plan — also sets premiums for employers of 4% of each employee’s monthly salary, while employees are required to pay premiums of 1% of their salary into the system. The El Sisi administration began rolling out the first phase of the act in July.

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