Back to the complete issue
Sunday, 10 May 2020

Cabinet discusses measures to unblock EGP 65 bn assets frozen for back taxes

Low-cost stimulus: Cabinet discusses measures to unlock EGP 65 bn of assets frozen in tax disputes. Businesses may only have to pay a 1% downpayment to unfreeze assets frozen by the Tax Authority as part of unresolved tax disputes if the cabinet economic committee pushes ahead with a plan it discussed last week. The Finance Ministry last month halved to 5% the downpayment required to unlock assets as part of the tax dispute resolution bill ratified on 8 March.

This could see up to EGP 65 bn of frozen assets unlocked and is part of a larger tax settlement initiative that could cover up to 126k taxpayers in dispute with the Tax Authority, state news agency MENA reports, quoting an unnamed banking official. Taxpayers who are in dispute with the taxman will still have to work toward a settlement after making the downpayment and unfreezing their assets.

Other decisions by the economic committee: The committee approved new terms for commercial licenses to companies working with natural gas, especially in petrochemicals and fertilizers, as well as others operating in customs-exempt zones. The Natural Gas Regulatory Authority last March dropped by 22-30% fees for commercial gas transmission, shipping, distribution, and supply licenses.

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 HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; 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; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.