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August 2, 2022
2022-1168

Egypt provides relief from delay interest, additional taxes, and duties

  • The new Amnesty Law provides a 65% wavier of any outstanding delay interest, additional taxes, and duties if the principal amount of tax is paid before 31 August 2022, for all taxpayers.
  • The Law also allows the Dispute Resolution Committee (DRC) to continue accepting new tax dispute applications until 31 December 2022.
  • Taxpayers should evaluate and assess whether the Amnesty Law can assist with settling their tax liabilities.

Executive summary

On 28 July 2022, the Egyptian Government published Amnesty Law No.153 (Law) in the Official Gazette, which came into effect on 29 July 2022. The Law waives 65% of any outstanding delay interest, additional taxes, and duties if the principal amount of taxes and duties are paid in full before 31 August 2022.

The Law also reintroduces the provisions and procedures stipulated in Law No. 79 of 2016 that introduced a mechanism allowing taxpayers to submit tax disputes to the DRC until 31 December 2022.

Detailed discussion

Background

The Law aims to expedite dispute closure and backlog of open years. The Law is encouraging taxpayers to settle their disputes by providing relief from delay interest, additional taxes, and duties.

Relief from delay interest, additional taxes, and duties

The relief under the Amnesty Law applies to the following taxes: income tax, value-added tax, sales tax, real estate tax, customs duty, stamp duty and state development duty. The remaining 35% of the delay interest, additional taxes and duties must be paid in full before 1 March 2023 for the relief to apply.

Dispute settlement

The Law reintroduces a mechanism allowing taxpayers to submit tax disputes to the DRC for resolution, before having the dispute addressed by appeal committees and Egyptian courts. The deadline for taxpayers to submit applications is 31 December 2022.

Implications

Taxpayers should evaluate and assess whether the Amnesty Law can assist with settling their tax liabilities.

For additional information with respect to this Alert, please contact the following:

Ernst and Young Egypt

Ernst & Young LLP (United States), Middle East Tax Desk, New York

 

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