Dr. Mohamed Maait, Minister of Finance, confirmed, The amendments to the Income Tax Law, approved by the Cabinet, and referred it to theParliament , aimed at relieving the citizens, stimulating investment, under the crises that have continued in the global economy, starting with the repercussions of the Corona pandemic, and the ensuing disruptions in supply and supply chains, and increased shipping costs, increased rates of inflation, Even the unprecedented economic challenges of the Russian and Ukrainian crises, He explained that these amendments include raising the personal tax exemption limit from 9,000 pounds to 15,000 pounds. This brings the total tax exemption limit to 30,000 pounds annually. It also includes establishing an incentive 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, Consistent with maximizing efforts to integrate the formal economy into the informal economy, and collecting the dues of the state treasury, and achieving tax justice.
Minister added, The amendments to the Income Tax Law, Some of the reforms to revitalize the Egyptian Stock Exchange include, It includes advantages of simplified accounting for individual and institutional investors, profits made during the tax suspension period are not subject to tax; To ensure tax fairness, and Giving investors an additional set of tax incentives to support the capital market and increase the demand for trading, as well as listing companies on the stock exchange. Exempting a percentage of the realized profit for shareholders equal to the credit and discount rate issued by the Central Bank at the beginning of each Gregorian year. and deducting 50% of 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 issuance of the law, which is reduced to 25% after that, In the event of an increase in capital through initial offerings, This sale will not be considered as a capital gains tax. And not to consider the exchange of shares between listed companies and non-listed companies as a tax-generating fact 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 it is not used to avoid tax, The tax treatment of investment funds has been modified. To encourage institutional investment, which supports the economy and emerging companies with the establishment of controls that ensure the safety of implementation; In line with international applications, and Exempting investment funds in debt instruments, and stock investment funds listed on the stock exchange, and venture capital funds and companies, and Policy holders are subject to 5% of natural persons and 15% to legal persons. and Entirely exempting charitable funds. A “transparent tax entity” was established to invest individuals in the Egyptian Stock Exchange through specialists; Which creates a good investment environment to support the Egyptian economy.
Minister indicated, Noting that these amendments also included the renewal of the law on the termination of 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 application of the automation of tax procedures, according to the success achieved by implementing this law in completing more than 51,000 requests to end disputes, With an agreed tax of 39 billion pounds.
Minister added, 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 philosophy of tax accounting contained in the Law for the Development of Medium, Small and Micro Enterprises.
