Egypt’s Tax Garnishment Relief: Extension and Guidelines for 2024

The primary objective of the Egyptian Tax Authority is to streamline processes for taxpayers and resolve tax-related issues in a manner that promotes investment and contributes positively to the nation’s economic growth. Following the enactment of the Tax Dispute Resolution Law and its subsequent extension, the focus has been on issuing comprehensive guidelines to simplify the process of lifting tax garnishment on taxpayers.

Process of Lifting Tax Garnishment:

In alignment with the directives of the Egyptian Tax Authority and the provisions outlined in Executive Instructions No. (10) of 2024, which extends work with Executive Instructions No. (21) and (28) of 2022 concerning the mechanisms for lifting garnishment, the Egyptian Tax Authority has decided to extend the implementation period of Executive Instructions No. (28) of 2022. This extension is part of ongoing efforts to support taxpayers, particularly in light of recent initiatives aimed at facilitating tax compliance and fostering trust between taxpayers and the Egyptian Tax Authority.

Cases of Tax Garnishment Lifting:

The following provisions outline the mechanisms for implementing the lifting of tax garnishment:

First case If the taxpayer or registrant commits to paying 1% of the amount seized:

If the amount seized is based on a link for failure to contest the legal deadline on tax notification forms for failure to meet formal conditions, such as (Form 19 for income tax – Form 15 for value-added tax). If the amount seized is based on a link for failure to contest based on the notification in the face of the prosecution (as a result of the rebound of tax forms indicating it was not found or unknown or isolated), or an announcement by the board as a result of the rebound of tax forms indicating it closed, provided that the door for contesting is reopened for the taxpayer or registrant.

Second case the authority lifts the seizure if the taxpayer pays 5% of the amount seized, provided that this seizure has occurred according to the following:

• The amount seized must be payable based on a decision of an internal committee.
• Appeals committee.
• Court judgment
• Tax dispute resolution committee
• Tax dispute resolution committee

An agreement must be reached to install the remaining 95% of the due amount over a period of no less than two years. This is to ensure that taxpayers do not bear additional burdens in exchange for delay.

Deadline for Compliance:

Taxpayers are advised that the deadline for utilizing the mechanisms for lifting tax garnishment is December 31, 2024.

Conclusion:

The Egyptian Tax Authority remains committed to supporting taxpayers and ensuring a fair and transparent tax environment, Extending the implementation period of Executive Instructions No. (28) of 2022, Andersen Egypt aims to provide taxpayers with the necessary guidance and assistance to resolve tax-related disputes effectively and efficiently. As we encourage all taxpayers to take advantage of these provisions and comply with their tax obligations within the stipulated timeframe.

To find out more, please fill out the form or email us at: info@eg.Andersen.com

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