Egypt’s Newest Law On Overdue Taxes – Law No. 153 Of 2022 – Sales Taxes: VAT, GST

On Thursday, 28 July 2022, Law No. 153 of 2022 (the
“Law”) to override overdue fines and additional tax fees
and to renew Law No. 79 of 2016 concerning tax disputes was enacted
and published in the Official Gazette. The new Law waives fines
imposed for the late payment of said tax dues and aims to alleviate
financial burdens on taxpayers while simultaneously helping the
state to accelerate the collection of delayed tax dues and curbing
the impact of COVID-19 by enabling the government to introduce
public services and tackling the social and economic impacts of the
pandemic.

The Law introduces new tax facilities for financiers and
taxpayers providing a 65% deduction on delay penalties and
additional taxes stipulated in various fee and tax laws, i.e.:

• Customs Law No. 66 of 1963 and Customs Law No. 207 of
  2020;




• Stamp Tax Law No. 111 of 1980;




• Law No. 147 of 1984 on Imposing a Fee for Developing State
  Financial Resources;




• General Sales Tax Law No. 11 of 1991 and Value Added Tax Law
  No. 67 of 2016;




• Income Tax Law No. 157 of 1981 and Income Tax Law No. 91 of
  2005; and




• Tax Law on Built Real Estates No. 196 of 2008.

Accordingly, early tax payment would help taxpayers to benefit
from the approved provisions to override 65% of delay fees and
additional taxes if the due principal taxes or fees are paid before
the date of enacting the Law or the effective date established in
the Law, i.e. 31 August 2022 and provided that the taxpayer pays
the remaining 35% until 1 March 2023.

The law furthermore extends the current Law No. 79 of 2016
regarding the termination of tax disputes until December 31, 2022,
thus keeping the legal position of taxpayers intact.

The law is in accordance with the state´s endeavor to
improve the tax system, alleviate the financial burdens on the
business community and reduce their financial tax burdens whilst
simultaneously facilitating tax compliance, advancing the national
economic development, and stimulating investment. Furthermore, the
government aims to mitigate the negative effects of the current
global crisis, caused by COVID-19 and the Ukraine war.

We, therefore, encourage businesses to make quick use of the new
Law to guarantee timely compliance and benefiting from the tax
waiver.

Originally published 2 August 2022

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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