Mukhtar Tawfiq: A new era with financiers to end old tax files… and a new mechanism for resolving disputes.

Fathi Al-Sayeh

Afaf Ibrahim, Deputy Head of the Tax Authority:

Solutions that comply with international regulations and agreements to end disputes with non-resident financiers )

“Mukhtar Tawfiq, head of the Egyptian Tax Authority,” said that the interest begins with A new era with the financiers through more facilitations and ending the outstanding problems in conjunction with the system’s automation and digital transformation, indicating that there are presidential directives that the problem of old files must be resolved, pointing out that there is a draft law in the House of Representatives now regarding files less than 10 million pounds, as is also being done. A study to draw up a law with regard to files over 10 million pounds, stressing that during this period instructions were made to the errands to deal with these files until the issuance of legislation.

For his part, “Ragab Mahrous, advisor to the head of the Egyptian Tax Authority,” said during the activities of the annual conference of the PricewaterhouseCoopers office, that it is in implementation According to the presidential directives and the assignments of the Minister of Finance and the head of the Egyptian Tax Authority, to end the old tax files, work is currently underway to prepare a draft law to end the old tax files based in its essence on the Small, Small and Micro Enterprises Development Law, pointing out that the Medium, Small and Micro Enterprises Development Law No. (152) For the year 2020, it provided great opportunities that financiers had not enjoyed before, explaining that the law includes a simplified and permanent tax system for these projects; In a way that contributes to reducing tax burdens and facilitating procedures, in order to ensure their encouragement and raise their operational efficiency and productive capabilities, pointing out that if sales or business are less than 250 thousand pounds, the tax is one thousand pounds annually, and if it is less than 500 thousand pounds, the tax is 2500 pounds, and if it is less than One million pounds, the tax is 5 thousand pounds annually, and if annual sales range from one million to less than 2 million pounds, the tax is 5.% of the sales volume. If it ranges from 2 million to less than 3 million, the tax is 75%, and if it ranges from 3 million to 10 million pounds, the tax is 1%, explaining that the size of the project subject to the simplified tax treatment is determined every five years according to what the Tax Authority conducts. Whoever has been examined, and the taxpayer is accounted for taxation in the following five years based on the results of the examination. Regarding the application of the neutral price, “Afaf Ibrahim, Associate Head of the Egyptian Tax Authority,” indicated that consultations are currently taking place with the head of the Egyptian Tax Authority to find this mechanism, so that in the event that an agreement is not reached with the Transaction Pricing Department, the financier will have other opportunities to present the issue again through this The mechanism, stressing that as soon as the final form of this mechanism is reached, it will be announced immediately to the tax community.

Afaf Ibrahim said “As for disputes related to a difference of opinion between the tax administration and a non-resident taxpayer with regard to the application of agreements to avoid double taxation, the taxpayer can, through a mechanism found in the agreement It is the article of the mutual agreement procedures, referring to the competent authority in his country and submitting a request to it explaining the existence of a dispute and difference in the application of the agreement, and accordingly the competent authority, through the mechanism of mutual agreement, contacts the competent authority in Egypt, to try to resolve this dispute and reach an appropriate solution in The framework of international tax agreements.

It is worth noting that the conference provided an opportunity for PwC tax experts, senior government officials and the business community in Egypt Discuss and exchange insights on the latest tax developments in Egypt, including unified tax procedures, new amendments to the value added tax and stamp tax laws, and the draft income tax law for the year 800.

The conference also dealt with the latest tax developments in the world and the second pillar of the comprehensive framework of the Organization for Economic Cooperation and Development “the global minimum of taxes and their impact on business.” General Investment Authority, Mukhtar Tawfiq, Head of the Egyptian Tax Authority, Ramy Youssef, Assistant Minister of Finance for Tax Policies and Development, Eng. Central Committee for Strategic Management, Maha Ali, Head of Media Unit, Office of the Head of the Tax Authority and General Manager of the website, Afaf Ibrahim, Deputy Head of the Egyptian Tax Authority, Nisreen Nasr, Head of Transaction Pricing Unit, in addition to a group of tax experts at PwC Middle East and business community leaders at the Egyptian Tax Authority.