Raising the personal tax exemption limit from 9 to 15,000 pounds, bringing the total tax exemption limit to 30 thousand pounds annually
Mohamed Maait, Minister of Finance, confirmed that the amendments to the “income tax” law, which was approved by the Council of Ministers and referred to the House of Representatives, are aimed at relieving citizens and stimulating investment, in light of the crises that have taken place in the global economy starting from the repercussions of the Corona pandemic. , and the consequent disruption in supply and supply chains, increased shipping costs, high inflation rates, even the unprecedented economic challenges of the Russian and Ukrainian crisis, explaining that these amendments include raising the personal tax exemption limit from 9,000 pounds to 15,000 pounds, thus reaching the exemption limit. The total tax rate is 30,000 pounds annually, and it also includes an incentive declaration for individuals to encourage them to request electronic invoices and receipts, and a reward for guidance for those who provide information on cases of tax evasion, with the completion of the circular obligating the business community to electronic invoices as of 2023, in a manner consistent with maximizing efforts to integrate The formal economy in the informal economy, the collection of the dues of the state’s public treasury, and the achievement of tax justice.
The minister added that the amendments to the “income tax” law include some reforms to revitalize the Egyptian Stock Exchange, as they include advantages for simplified accounting for individual and institutional investors, and the non-subjection of profits achieved during the period of tax suspension. To ensure the achievement of tax justice, granting investors a set of additional tax incentives to support the capital market and increase the demand for trading, as well as listing companies in the stock exchange, exempting a percentage of the profit made for shareholders equivalent to the credit and discount rate issued by the Central Bank at the beginning of each calendar year, and a 50% discount From the value of the capital gains achieved at the initial offering on the stock exchange for a period of two years from the date of the issuance of the law, which is reduced to 25% therefollowing. Considering the exchange of shares between listed companies and non-listed companies as a tax-generating event to encourage the increase in the structures of companies listed in the stock exchange.
The minister explained that a mechanism has been established that allows deduction of tax on distributions within the compound tax structures; which helps in avoiding economic double taxation; To encourage investments in Egypt; Provided that it is not used to avoid tax, and the tax treatment of investment funds has been modified, to encourage institutional investment, which supports the economy and emerging companies, while setting controls to ensure the safety of implementation; In accordance with international applications, the exemption of investment funds in debt instruments, equity investment funds listed in the stock exchange, and venture capital funds and companies, the subordination of policyholders at 5% to natural persons and 15% to legal persons, the exemption of charitable funds in full, and a “tax transparent entity” was established » To invest individuals in the Egyptian Stock Exchange through specialists; Which creates a good investment environment to support the Egyptian economy.
The Minister indicated that these amendments also included the renewal of the law on ending tax disputes and the provisions and procedures in force in this regard until December 31, 2022, in response to the business community; In a manner that contributes to the speedy completion of the accumulated disputes before the comprehensive implementation of the mechanization of tax procedures, in light of the success achieved from the work of this law in completing more than 51,000 requests to end disputes, with an agreed tax of 39 billion pounds..
The minister added, that it is to facilitate the tax community; These amendments also include a simplified and definitive tax treatment to resolve the accumulated tax files, before the completion of the mechanization work by next June, with the same tax accounting philosophy contained in the Law for the Development of Medium, Small and Micro Enterprises..
