July 20, 2018
From Egypt: Income Tax Law 91 of 2005, Amended by Issuing Law No. 29 of 2018
Two Separate Forms to Submit Tax Returns With Optional Deadlines:
- Law 29/2018 has been issued to amend corporate tax return submission forms. The main point introduced was the division of the normal tax return submission form into two separate forms, the first of which is for the original tax return, and the second for supplementary tax return information and tables.
- The tax return submission due dates have not been changed or amended. Attached tables and supplementary tax return information can be submitted within 60 days after the deadline stated for the original tax return (four months following the yearend) without affecting the taxpayer’s right to request postponement of the deadline.
- Egyptian Tax Authority (ETA) will not consider the tax return submission if the supplementary information and tables are not fully submitted.
Changing Priorities for Settling Tax Due:
- Priorities of settling ETA debts have been amended to consider payments due before applying interest for late payments. Prior to this amendment, the opposite was true, meaning that now tax payers have much more flexibility when settling due taxes, as they will not be subject to an additional interest for late payments as a result of not fulfilling their full tax exposure.
- Considering tax due from the taxpayer before applying interest for late payments has a huge effect on when to stop the calculation of this interest, which was previously unaccounted for.
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