New financial packages… and a white list of financiers… the most important government incentives to support investors

Ahmed Kouchouk, Minister of Finance, revealed 4 integrated packages for the tax facilitation strategy for investors, with the aim of expanding the tax base, which are as follows:

 

1- Open a new page

 

By building confidence between the tax authority and financiers through a maximum fine on fines, voluntary disclosure without fines, simplifying the end of tax disputes, creating a simplified tax system for small projects and entrepreneurial companies, and integrating the informal economy into the formal economy.

 

2- Stimulating tax compliance

 

With the aim of enhancing the sustainability of tax compliance through reforms in tax administration, enhancing the quality of tax services, and rewards through tax policies.

 

 

3- An additional opportunity

 

It aims to settle the situation and treat distortions, to complete the building of an integrated tax system that can achieve a balance between the rights of the state and the rights of the taxpayer.

 

4- Tax community discipline

 

All measures are taken to ensure the discipline of the tax community, to control markets and the informal economy, and to target tax non-compliant people after giving sufficient opportunities for voluntary compliance.

 

The Minister announced the details of the second package of tax facilities, and the white list of committed financiers, and the government provides them with exceptional services, whether in speedy inspection or tax refund, or allowing immediate clearing of balances, and some other non-financial benefits, so that they have financial, non-financial, tax and non-tax packages.

 

Kujouk said that the Ministry has launched an electronic platform for advice to support the business community, and is useful for new investors, company owners, or merging companies, and provides them with comprehensive explanations about all transactions, with the aim of supporting investors and doubling their business, without running into errors or obstacles, in addition to issuing other internal decisions that will improve the image with the re-evaluation of the Doing Business report for Egypt and for all countries.

 

Indicating the work to bring about a real boom in the tax community and financiers, solving the problem of the difficulty of companies exiting the market, and resolving all challenges, to complete the procedure in a way that preserves the rights of the public treasury of the financier at the same time.

 

The Minister of Finance announced a new low-cost financing program, which is a continuous and permanent braided tax system, to reach the largest number of financiers. Cooperation was made with the Enterprise Authority to prepare a low-cost financing program, which will be available to the first 100,000 financiers in order to grow, expand, and achieve greater profits.

 

He said that the Ministry is working on a value-added tax refund system, which is liquidity that belongs to the company, and the company can obtain it and make expansions and spending from countries that need to borrow or borrow, which achieves financial liquidity for companies and resolves a large number of disputes, as the Ministry received 70,000 requests to end disputes in recent years, and 58,000 disputes were ended, in accordance with the Dispute Settlement Law, and the Ministry also works to avoid entering into disputes at all through a work system to solve problems with Funders.

The Minister of Finance confirmed that the Ministry voluntarily received requests to close 400,000 old tax files, and the Ministry received 650,000 new or amended tax returns, with a turnover exceeding one trillion pounds, and paid 78 billion pounds in tax.

 

He pointed out that the capital gains tax and stamp tax, which are a simple lump sum on buying or selling, were facing difficulty in application, and therefore the ministry is trying to create a lump sum tax that is easy to calculate, and a package will soon be announced regarding registration on the Egyptian Stock Exchange, after preparing major benefits for registering companies on the stock exchange, to support Egyptian companies and investment.

 

He pointed out the unification of the real estate transaction tax at 2.5% of the contract value, instead of the previous system of dealing with the second real estate transaction of the same property on the basis that it is commercial, regardless of the number of times the sale or purchase, and this is done via a mobile application to pay contracts, obtain papers, etc.

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