Egypt to continue lifting seizure, detention on financiers, registrants till September

CAIRO – 6 July 2020: The Egyptian Tax Authority decided to continue to apply the provisions of Instructions No. (46) for the year 2020 issued regarding the mechanism for lifting detention on financiers or registrants, until September 30, 2020.

This comes through the state policy that seeks to restore economic life, reduce the effects and repercussions left by coronavirus, and facilitate the financiers and registrants, the Authority clarified in a statement, Monday.

The Egyptian Tax Authority has called on all financiers and registrants to quickly go to the departments responsible for holding them accountable to raise the seizure, whether it is a movable seizure or seizure of the debtor’s money with others, by adhering to the percentages mentioned in these instructions.

It clarified that, in this regard, it is taken into consideration that the proportions include all amounts seized, whether it is an original tax or a delay, or an additional tax, or additional amounts resulting from the application of the provisions of income tax laws as of 1981 and the Sales and Value Added Tax Law as of 1991 , or the stamp law or any tax that the Egyptian Tax Authority collects.

The Authority pointed out that, according to Instructions No. (46) for the year 2020, the taxpayer or registered taxpayer who is taxed, whether the reservation is movable or a reservation of the debtor with others by the Egyptian Tax Authority, can raise the detention if the financier or registered obliges to pay 1 percent of the value of debt owed.

For his part, General Director of the Technical Office of Head of the Egyptian Tax Authority, Ragab Mahrous, stated that the authority raises the seizure, whether or not this seizure took place according to an indebtedness debt based on the decision of an internal committee, an appeals committee, a court ruling, or a committee to end disputes, or the decision of the review committee The final connection.

He pointed out that, once the financier or registrar pays 5 percent of the value of the debt withheld, with an agreement to install the remaining debts due, which is 95 percent over a period of not less than two years, he will not be charged additional burdens in return for delay or an additional tax, taking into account This does not apply to cases of final cessation of activity or liquidation.