Back to the complete issue
Sunday, 1 November 2020

House planning committee approves harsher penalties for late tax filing

LEGISLATION WATCH- House planning committee approves harsher penalties for late tax filing: The House Planning and Budgeting Committee has approved amendments to the Unified Tax Act that would impose fines of EGP 50k to EGP 2 mn on those who fail to submit their tax returns within 60 days of the deadline, Al Shorouk reports. Repeat offenders who fail to file returns within the 60-day period more than three times could also face jail time ranging between six months and three years. The Unified Tax Act was passed by the House earlier this year and allows for the creation of a single tax platform through which to file income tax, VAT, stamp tax, and real estate tax returns.

Overseas tax engineering is gonna get a little bit more difficult: Another amendment to the legislation clarifies the penalties handed to companies that fail to disclose transactions of more than EGP 8 mn made with a related overseas entity. Under the proposals, companies will:

  • Pay a fine equivalent to 1% of the transaction for failing to disclose the transaction in the tax return
  • Pay a 3% fine for failing to disclose local transactions
  • Pay a 3% fine for failing to disclose overseas transactions
  • Pay a 2% fine for failing to report on its overseas activities on a country-by-country basis.

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; 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.