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Thursday, 3 December 2020

E-invoicing system gains steam with July ‘21 deadline for state entities

The public sector is getting an e-makeover with new requirements to register on the Tax Authority’s electronic invoicing system by the start of the next fiscal year in July 2021, the cabinet decided at its weekly meeting yesterday. Local authorities will also be banned from contracting service providers of any kind who are not also registered on the system, cabinet added. All public and private sector companies alike are expected to be in the system by April 2023, Finance Minister Maait had previously said.

The tax authority’s e-invoicing system is attempting to curb tax evasion. The first trial phase of the system was launched last month with 134 companies, while the second phase will include an additional 340 entities, and is expected to launch in February 2021. The government is attempting to develop a unified digital tax payment system, which will enable businesses to file and pay income tax, stamp tax, VAT and real estate tax through a single online platform.

MEANWHILE- More middle-income households now have access to social housing after the government raised the maximum monthly individual and household incomes to be eligible for President Abdel Fattah El Sisi’s “a home for every Egyptian” initiative. The monthly income threshold for families is now EGP 14k, up from EGP 9k, and EGP 10k for individuals, up from EGP 7k.

Also approved by cabinet: A decision to begin the process to sign long-term supply agreements with several private sector energy companies building renewable energy plants under build-own-operate frameworks.

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