The Tax Authority issues a comprehensive explanatory guide for contracting, construction and building services
Rasha Abdel-Aal, Head of the Egyptian Tax Authority, confirmed that the Authority issued a comprehensive explanatory guide regarding contracting services and construction and building works that are subject to the provisions of Law No. (157) of 2025, explaining that this guide comes within the framework of the Authority’s keenness to spread tax awareness and simplify concepts for financiers, especially those working in the contracting sector, which is considered one of the vital and influential sectors in The National Economy.
She indicated that the guide can be viewed and downloaded through the website of the Egyptian Tax Authority at the following link
She indicated that the guide includes a detailed explanation of all the tax obligations of the general contractor and subcontractor, the mechanism for issuing and supplying electronic invoices and receipts, and the method of calculating the value-added tax according to the general price on the total value of the invoice or receipt. Electronically, to ensure the proper application of the law and enhance the voluntary commitment of financiers.
She added that the guide also explains how to deal with previous and ongoing contracts before and after the implementation of the law, the tax treatment of commodity inventory, the mechanisms of deduction, addition and advance payments, in addition to clarifying the tax treatment of government agencies, local administration units and public bodies in the event of direct supply to the Tax Authority, with a specific supply percentage. (20%) of the value of the tax due on electronic invoices issued by those contracts.
The guide also includes a section for the most frequently asked questions and applied examples in numbers to clarify how to calculate the value-added tax on electronic invoices, allowing financiers, accountants, and consulting offices to have an accurate and clear understanding of the mechanism of practical application.
Rasha Abdel-Al explained The preparation of this guide comes as part of the Authority’s ongoing efforts towards unifying tax concepts and providing simplified guidance services, in implementation of the directives of the Minister of Finance, Ahmed Kouchouk, regarding facilitating procedures and clarifying executive instructions for all economic activities, adding that the Authority pays special attention to prior awareness before implementation, to ensure clarity of vision for all parties.
The head of the Egyptian Tax Authority confirmed that this guide reflects The Authority’s approach to achieving transparency and continuous communication with the tax community, stressing that the Authority continues to issue guidelines for multiple activities, in support of the principle of a simplified tax system and ease of voluntary compliance.
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