illustrative_periodical_book_no_27_2018

Illustrative periodical book 27/2018 for law 174/2018 related to reduction of late payment interest and additional tax.

The above-mentioned book has been issued in September 5, 2018 to emphasize conditions and limitations for applying late payment interests or additional tax reduction per law 174 / 2018 (for more information about law 174/2018, please Click here) as follows:

• The reduction falls for the late payments and the additional tax, and does not include the original tax amount, or any other fines related to article (87) BIS of law 91/2005, nor the fines and the compensations related to tax evasions.
• The original tax or duty which is the base for triggering the late payment interest or the additional tax must be due for payment to be paid before 15/8/2018.
• Moreover, in order to benefit from this law, it is required that the taxpayer should pay all the original amount of the original tax or duty in full within the 180 days starting from 15/8/2018 until 10/2/2019.
• The above benefit will not be valid on the withholding tax on payment or advance payments regime.
• The “tax due” term means any tax due that can trigger late payment interest or additional tax as a result of missing payment on specific deadline.
• The tax will be eligible for payment as a result of submission of (corporate tax declaration – agreement in the internal committee – decision of appeal committee even if it was objected –not objected, final tax assessment or tax claim– court decision that must be levied even if it was objected – decision of the compromise committee– decision of dispute resolution committee.)
• 100% reduction on the interest applied for late payment if original tax payment is paid before the issuance of the law.(this is not applicable on the additional tax)
• 90% reduction on the interest applied for late payment or additional tax if the original tax is paid from 15/8/2018 until 12/11/2018.
• 70% reduction on the interest applied for late payment or additional tax or the continuation of the payment in full for the original tax, if payment of original tax is paid within 13/11/2018 until 27/12/2018.
• 50% reduction on the interest applied for late payment or additional tax or the continuation of the payment in full for the original tax, if payment for the original tax is made starting from 28/12/2018 until 10/2/2019.
• All the tax offices should apply this law and make reconciliation in accordance to law 91/2005 and its amendments until the issuance of law 29/2018. (changing priority for settling tax due) – For more details about law 29/2018, please click here.
• In all cases, the application of the reduction of late payment interest and additional tax according to law 174/2018 should not give the right for the taxpayer to refund in cash.

Responsibility and Commitment:

Andersen Tax & Legal Egypt’s tax team has prepared this summarized tax report to introduce the periodical book No.27 of 2018. 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 Tax & Legal Egypt for tailor made solutions.