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Latest law on tax delinquency penalty relief offers new incentives: Finance Minister - Daily News Egypt

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Latest law on tax delinquency penalty relief offers new incentives: Finance Minister

Incentives help accelerate collection of state’s overdue debts, maximise its ability to provide public services during pandemic, says Maait


The new law on tax delinquency penalty relief, which the Parliament approved on Monday, is set to apply to all state dues, Minister of Finance Mohamed Maait said on Tuesday.

He said the new law includes further incentives for taxpayers to reduce the burden on them. It would also go some way to easing the negative effects of the novel coronavirus (COVID-19) pandemic on the country’s economy.

In a Tuesday statement, the Ministry explained that the law exempts those who pay their overdue taxes of different kinds from any delay fines or additional tax dues on these tax arrears by up to 90%. This would be subject to the original tax or due fees being fully paid within 60 days from the date of issuing the law, 70% if they paid in the following 60 days, and 50% if they paid in the following 60 days.

Full exemption of the delay fine will be granted to those who make full payment of their overdue taxes before the law commencement.

The taxes subject to the new law include income tax, value added tax (VAT), stamp duty, real estate tax, development fees, customs duty, social insurance contributions, and other state dues.

The minister said these incentives help in speeding up the collection of the state’s overdue debts and maximising its ability to provide public services during the pandemic. The incentives would act as an encouragement for taxpayers to quickly pay their tax arrears.

The new law also provides for an extension on ending tax disputes in the administrative phase until the end of December, Maait noted.

He added that specialised committees will discuss tax complaints and disputes in courts or through tax appeals committees at the Egypt Tax Authority (ETA), granting the private sector a more substantial role in economic development.

Maait added that the law gives taxpayers a new opportunity to come to an agreement with committees to end tax disputes. This opportunity comes into immediate effect with the issuance of the law, along with the mandates to receive requests from taxpayers until the end of December.

The minister stated that the law is in line with presidential directives to support Egypt’s economic sectors that have been affected by the coronavirus pandemic. It is also consistent with presidential mandates to accelerate ending tax disputes, without resorting to the courts. This will have the added benefit of preserving the state’s rights, whilst contributing to laying the foundations of trust bridges with taxpayers.

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https://dailyfeed.dailynewsegypt.com/2020/07/21/latest-law-on-tax-delinquency-penalty-relief-offers-new-incentives-finance-minister/
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