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Tuesday, 21 April 2020

Egypt lists sectors eligible for covid-19 corporate income tax relief

Gov’t lists sectors eligible for covid-19 corporate income tax relief: The Madbouly Cabinet specified on Thursday industries eligible for the income tax relief program ordered by President Abdel Fattah El Sisi earlier this month, confirming what a senior government official told us last week, according to a statement. Under the package, companies in sectors including aviation and tourism (including hotels, restaurants, and cafes) will be able to pay income tax in three installments ending 30 June.

Other eligible companies include those operating in:

  • Journalism and media;
  • Telecommunications and and IT (except landline and mobile network operators);
  • Sports;
  • Public transport providers;
  • Car retailers;
  • Healthcare providers;
  • Contractors; and
  • Manufacturers (excluding those who make food, medical products, and cleaning supplies).

How the instalment program will work: The first of the three installments — which is due before the end of this month — should cover 20% of the total amount of taxes owed. The remaining two installments will cover the remaining 80%, with 30% due in May and 50% on or before 30 June.

The House Planning and Budgeting Committee approved the relief program, as well as a three-month real estate tax holiday for companies operating in the industrial and tourism sectors on Saturday, according to Mubasher.

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