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Tuesday, 1 October 2019

FEI suggests amendments to Income Tax Act

LEGISLATION WATCH- FEI suggests changes to Income Tax Act: The Federation of Egyptian Industries (FEI) is lobbying the Finance Ministry for changes to the Income Tax Act, the local press reported. Among the amendments is a proposal to give a tax cut to low income earners by tripling the tax exemption threshold to EGP 24k from EGP 8k currently. The FEI wants to amend residency rules for corporate tax purposes and redefine what it means for individuals or entities to have a “close relationship” with a company. It also wants to ensure that all e-commerce companies are brought into the tax base.

Background: The government began drafting significant changes to the Income Tax Act in May, which are expected to impact how tax appeals are handled, the ministry’s internal tax committees, and the procedures for filing tax returns. The government said last month it had incorporated suggestions from the business community and finalized an initial draft of a new income tax law that it was ready to put up for public consultations before going to Cabinet for approval. Once approved, the draft will 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 make any changes to income tax rates.

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