Egypt COVID-19 Updates –Three Tax Installments for Corporate Tax Return of 2019 Free of Late Payment Interest – Permitted for Some Sectors
Tax Authority has issued decision No. 47 for the year 2020 dated April 27th, in addition to the appendix dated April 28th, in accordance with the Minister of Finance’s instructions, and in implementation of the presidential plan to support and provide all the possible facilitation to the sectors most affected by the Corona Virus pandemic (Covid-19), which are the industrial, commercial and service sectors.
In addition to the approval of the Cabinet ministers on the draft law that includes some financial measures required to deal with the consequences of the Corona Virus (COVID-19) in the Cabinet’s meeting held on April 2nd, 2020.
It was decided to settle the income tax due of the year ended 2019 on three installments for companies that are operating in the following sectors:
1. Aviation sector.
2. Tourism and monuments (including restaurants and cafes).
3. Hotels sector (touristic and hotel facilities).
4. Press and Media sector.
5. Industrial sector (especially export-oriented firms), except (food-sector or pharmaceutical-based industrial plants, health-care supplies or detergents).
6. Transportation and car distributors sector.
7. Hospitals sector.
8. Contracting sector.
9. The communications and information technology sector, except (Companies which have license to establish, operate and manage a public networks of landline, mobile communications and Internet services).
10. Sport Sector.
All the above mentioned sectors companies mostly affected by the Corona Virus (COVID-19) will be able to settle corporate tax of 2019 free of late payment interest on three installments as follows:
- 20% payment of the tax due in April 2020.
2. 30% payment of the tax due in May 2020.
3. The remaining 50% of the tax due should be paid before the end of June 2020
Responsibility and Commitment:
Andersen Tax & Legal Egypt’s tax team has prepared this summarized tax alert to introduce the tax facilitations for COVID-19. Efforts have been combined to produce this alert 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.