Back to the complete issue
Tuesday, 24 September 2019

Egypt finishes initial draft of new income tax law

LEGISLATION WATCH- Initial draft of new income tax law ready: The Finance Ministry has completed incorporating suggestions from the business community and finalized an initial draft of a new income tax law, Minister Mohamed Maait said yesterday during the Future of Investment in Egypt conference, according to a ministry statement. The draft will now be up for public consultations before making its way to Cabinet for approval. Once approved, it will then be handed over to the House of Representatives for a discussion and a final vote before getting signed into law by the president. Maait said in July that the new law would not enact any changes to income tax rates.

Background: We reported in May that the government began drafting significant changes to the Income Tax Act that may be extensive enough to require a new legislation. The new legislation is expected to impact how tax appeals are handled, the ministry’s internal tax committees, and the procedures for filing tax returns, Tax Authority boss Abdel Azim Hussein told us. It would also include introducing a new chapter in the tax code for the treatment of online businesses, new powers to combat tax evasion, and a review of how tax incentives are structured.

Manufacturers to get “preferential treatment” in Real Estate Tax Act: Separately, new real estate tax act would see manufacturers receive “preferential treatment,” Maait also said at the conference, according to the ministry statement. Factory owners had voiced concerns over the current real estate tax system, which imposes taxes on idle industrial land, according to Al Shorouk.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.