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New Amendments in State Development Tax Law No. 147 of 1984 with the issuance of Law No. 83 of 2020


  • State Development Tax Law No. 147 of 1984 was introduced on the 4th of October 1984, and its Executive Regulation issued on the 21st of April 1986.
  • This law has been subject to many additions and amendments over the last period.
  • We are currently in the last amendment of some provisions of the Law No. 147 of 1984 with the issuance of Law No. 83 of 2020 on the 21st of June 2020, as follows:

Firstly: Replacing items No. 9, 10, 12 and 15 of the first paragraph and the last paragraph of Article No. 1 of law No. 147 of 1984, as follows:

Item (9)

Documents and other taxable amounts subject to in-kind state development tax to be:

EGP 2 on each taxable amount subject to the in-kind state development tax at the rate of EGP 0.05 or more, with the exemption for the fees for the Gas Cylinders and individuals’ Land or Railways transportation tickets.

The above is instead of EGP 0.05 prior to amendments

Item (10)

Extracting copy of documents

EGP 5 for obtaining copy of the official documents from the Authentication Authority.

The above is instead of EGP 1 prior to amendments

Item (12)

Purchase from Duty-Free Markets

2% of the value of each commodity purchased from the Duty-Free Markets, more than USD 5, with a minimum of USD 1. With the exemption for the foreign members of diplomatic and consular corps (non-honorary) listed in tables issued by the Ministry of Foreign Affairs. The Duty-Free Markets are liable to collect this duty and to be paid to the Egyptian Tax Authority (ETA).

The above is instead of 1% prior to amendments

Item (15)

12% of the total value paid for Celebrations and Entertainments Services in Hotels, Tourist Shops or other Public Places, with the exception for Celebrations conducted by the State and Celebration related to the Ministry of Culture and the Ministry of Youth & Sports for sports awareness.

All above mentioned Hotels, Tourist Shops or Public places providing such services are liable to collect this duty with the value of the services and to be paid over to the ETA.

The above is instead of 10% prior to amendments

Amendment in last paragraph of Article No.1:

1.The executive regulation for such law should be issued by the Minister of Finance, to identify the procedures and timing to collect and pay duty mentioned in the first paragraph of this article to the Egyptian Tax Authority.

2. The responsible person to collect the duty mentioned in the first paragraph of this article should present a monthly return to the Ministry of Finance for amounts collected as per executive regulations, according to what will be identified by the Executive Regulation of this law.

3. A fine of not less than EGP 5,000 and not more than EGP 50,000 (it was, not less than EGP 50 and not more than EGP 500) in case of not paying the collected duty within the due date, with no excuse accepted by the Minister of Finance or his delegated person.

In addition to delay interests of 2% on delayed duty not paid within the due date/s for each month or part of the month. In all cases, the delay interests should not exceed 100% of the due duty.

In case the court case is already raised and no final court decision issued, a compromise can be done in return to pay 150% of the delayed duty.

Secondly: Adding new 8 items (No. 21 to 28) of the first paragraph of article # 1 of law No. 147 of 1984, as follows:

Item (21)

Purchase or sale or loan (seconding) or renewal or other contracts for Egyptian or Foreign sport players, and the contracts of technical and administrative team and the head Egyptian or Foreign Coach, for any sports game as follows:

Duty %Annual Contracts’ Value
3%Less than EGP 1,000,000
4.5%More than EGP 1,000,000 up to EGP 2,000,000
6%More than EGP 2,000,000 up to EGP 3,000,000
7.5%More than EGP 3,000,000 up to EGP 5,000,000
9%More than EGP 5,000,000 up to EGP 10,000,000
10%More than EGP 10,000,000

The concerned Sport Game’ Federation, prior to authenticate any contract mentioned above is liable to collect the above-mentioned duty to be paid to the ETA.

Item (22)

License fees at the rate of 0.5% of the paid-in capital of the Sports Services Companies established under the Sports Law, for the first time of establishment or renewal. The concerned authority to provide or renew the license is liable to collect the duty and to be paid to the ETA.

Item (23)

Foods for dogs, cats and birds for decoration, whether imported and prepared for retail or unprepared, at the rate of 25% of the importation invoice, plus the customs duty, VAT and other duties. The Customs Authority is liable to collect the duty and to be paid to the ETA.

Item (24)

EGP 0.30 per liter on the sale of the Gasoline products, and EGP 0.25 per liter on the sale of the Solar products.

Item (25)

Mobile phones, its parts and all related accessories, at the rate of 5% of the value plus VAT and other taxes and fees.

Item (26)

Raw or non-manufactured tobacco and tobacco’ waste in all its forms, at the rate of EGP 1.5 per net KG.

Manufactured tobacco, and other types of manufactured tobacco, or manufactured substitutes tobacco, homogeneous or regenerated tobacco, shisha tobacco, extracts and tobacco spirits, at the rate of EGP 3 per net KG.

Item (27)

All types of imported fully-manufactured iron, whether from mixtures and non-mixtures as long as it is sold in the local market directly and under items (72.8 – 72.9 – 72.10 – 72.11 – 72.12 – 72.13 – 72.14 – 72.16); mentioned in chapter (72) of the Harmonized Custom Tariff, at the rate of 10% of the market value for the customs purposes, plus the VAT and other taxes and fees.

Item (28)

2.5% of the internet value for companies and commercial establishments.

Date of Application:

This law should be applied effectively from 22 June 2020.

Responsibility and Commitment:

Andersen Egypt’s tax team has prepared this summarized tax report to introduce Law No. 83 for the year 2020. Efforts have been combined to produce this report with clear and accurate content. However, this report aims only to spread general information and should not be treated as a legal document or a document that can be used for decision-making, or for issuing specialized consultations.

Please contact Andersen Egypt for tailor-made solution.

Written By

Tax Team

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