FAQ’s

A1 – Business owners and those obligated to pay taxable revenues, including companies and projects established under the free zone system, are obligated to report quarterly to the tax office in January, April, July and October, including the database schematic diagram.

A 2 – The taxpayer is exempt from submitting declarations in the following cases: (1) If his income is limited to salaries and the like, regardless of his income. (2) – If his income is limited to salaries and the like and real estate income and his net annual income from it does not exceed the amount of 5000 pounds (the exempted segment according to Article 7 of the Law)

A 3 – This taxpayer is obligated to submit his annual tax return in the following cases: 1- If his income includes revenues from a commercial or industrial activity or a non-commercial profession activity, in addition to salary revenues and the like, regardless of the value of this income. 2- If his income from salary revenues and the like and real estate income exceeds 5,000 pounds annually (the exempted segment according to Article (7) of the law).

A4 – The law has standardized the tax treatment for both ordinary workers and daily workers so that taxable revenues are determined for each part of the year in which the revenue was obtained in proportion to its period and after converting the monthly revenue into annual revenue with the application of the exempt segment stipulated in Article (7) and its amount. 5000 pounds and the personal exemption stipulated in Clause 1 of Article 13 with a capacity of 4000 pounds.

A5 – Yes, he has the right to do so with a request submitted to the employer that made the deduction within thirty days from the date of receiving the salary, and if the worker does not have a body for which he can submit an objection, he may submit the objection to the competent tax office or the competent appeal committee, according to the circumstances, during the aforementioned period.

A6 – Yes, the employer has the right to object to the resulting tax differences upon examination within thirty days from the date of receiving the notification in accordance with the text of Article (118) of Law 91 of 2005.

A7 – Law No. 91 of 2005 did not decide to deduct 10% in return for obtaining revenue, as the law decided to increase the exemptions established for the exempt segment (5000 pounds) and the personal exemption (4000 pounds).

A8 – The sums that a taxpayer receives (whether he is delegated or not) from a party other than his original employer shall be subject to tax on salaries and the like at a rate of 10% peremptory tax without deducting any costs or any other deductions, and accordingly the one who receives These amounts have any tax exemptions regarding this amount.

A9- In Paragraph (A) of Clause (5) of Article (13) of the Law an explicit provision for the exemption of the food meal that is disbursed to the workers, on the condition that this meal is both in-kind and collective, and as a consequence, if the employer pays a cash sum in exchange for the meal, it is considered a monetary advantage. It is subject to tax on salaries, borne by the person it is paid to.

A10- Paragraph (b) of Clause (5) of Article (13) of the law explicitly stipulated exempting the collective transportation benefit for workers or the equivalent of its costs, provided that this advantage is both physical and collective, and this means that the facility or company if it has cars to transport Employees, the cost of transporting workers is not considered an advantage for workers and is not subject to tax, and in the event that they do not own cars and rent cars from others to transport workers collectively, the cost of transportation is also not considered an advantage for workers and is not subject to tax and this is what is meant by the term or the corresponding cost. Based on that, if the agency disburses sums to any of the workers in the form of a cash allowance in exchange for the mass transportation benefit, then this amount is considered a cash benefit for whoever obtains it and is subject to tax on salaries and the like.

A11 The law includes in clause (6) of Article (13) an explicit provision to exempt the employees ’share from the profits that are decided to be distributed in accordance with the law, taking into account that this share is not considered one of the costs that should be deducted for the company or establishment when determining the tax base with respect to it.

A12 – The law did not include a stipulation that the membership remuneration or allowances that chairmen and members of the board of directors receive in the money companies are subject to tax on salaries and the like, or other taxes, bearing in mind that these bonuses and allowances are not considered among the costs that are deductible when determining the tax base of the company according to the clause [4] From Article (52) of Law No. 91 of 2005.

A13 – The law did not include a stipulation that these shares, distributed profits, or attendance fees are subject to tax on salaries and the like, or other taxes, taking into account that the dividends and dividends distributed and the attendance fee paid to shareholders on the occasion of attending the General Assembly is not considered a deductible cost when determining The tax base for the company.

A14 – The law decides that the salaries and bonuses that the chairmen and members of the boards of directors receive in the public sector companies and the public business sector from non-shareholders shall be subject to tax on salaries and the like, as is the case for other workers subject to tax.

A15- The law decides that what is earned by heads, members of boards of directors and managers in money companies in return for their administrative work, shall be subject to tax on salaries and the like, the same as for the rest of the workers, without specifying a maximum limit for these amounts or the number of these members.

A16 – The monetary compensation that workers receive for the leave balance paid to them on the occasion of the termination of service, whether due to death, resignation.

A17 – The actual costs required by the worker’s performance of his job are not included in the income taxable on salaries and the like, as they are considered as an actual cost in accordance with the general provisions of the law.or retirement pension, is exempt from being taxed on salaries and the like in accordance with Law No. 232 of 1996.

A18- The worker who enters a job after being transferred to the pension, what he gets in return for his work is subject to the tax on salaries like the rest of the workers and enjoys the exempt category and personal exemption in accordance with the law, taking into account that what he gets from the pension remains non-taxable and the entity in which he works is considered to be his workplace The original.

A19 – The price charged according to the text of Article (8) of Law 91 of 2005 as follows: More than 5,000 up to 20,000 pounds 10% More than 20,000 up to 40,000 pounds 15% More than 40,000 20%.

A20 – The delay fee is due from the day following the end of the period specified for the supply and is calculated on the basis of the credit and discount rate announced by the Central Bank plus 2%.

A21 – The taxpayer (worker or employee) who works for a period of a year is entitled to the aforementioned tax exemptions in proportion to the period of work per year in accordance with the provisions of Articles (7), (8), (10) of the law.

A22 – The person responsible for supplying the tax to the benefit of business owners who are obligated to pay taxable revenues by withholding an amount of what they have to pay on account of the tax in accordance with what is specified by the executive regulations of this law. The supply is made to the competent tax office during the first fifteen days of each month of the payments made in the previous month. In the event that the business owner or the person obligated to pay the taxable revenue is not resident or does not have a center or facility therein, responsibility for the tax payment falls on the person entitled to the taxable revenue.

A23 – Obligations of the business owner towards the interest: (1) That he withhold what he has to pay on the account of tax and remit it within 15 days of the following month. (2) Business owners shall pay the tax differences arising upon examination without prejudice to their right to recourse to the taxpayer for what he owes. (3) Submitting a quarterly declaration on 1/1/1, 1/4, 1/7/, 1/10 to the authority. As for the employer’s obligations towards the employee or worker, they are: The type of income and the amount of tax withheld.

A24 – The law includes in Article (135) of it the stipulation that a fine not less than two thousand pounds and not exceeding ten thousand pounds shall be imposed on whoever refuses to submit the tax return.

A25 – The law includes in Article (135) of it the provision that a fine not less than two thousand pounds and not exceeding ten thousand pounds shall be imposed on anyone who refuses to submit the tax return.

A26 – The first paragraph of Article (13) of the law included a provision stating that no breach of other tax exemptions established by special laws. Whereas, these bonuses are exempt according to an explicit provision in the laws it decides, so these bonuses are exempt from salary tax in accordance with these laws.

A27 – The special allowances, even if exempted according to the laws granting them, whether they were added to the basic salary or not, but the variable wages spent in exchange for the special allowances that were added to the basic salary are subject to tax and do not enjoy the exemption specified for the bonus according to the conclusion of the opinion of the General Assembly of the Fatwa and Legislation departments. In the State Council and approved by the Tax Authority.

A28 – The law includes in clause [7] of Article (13) a provision to exempt salaries and the like that are received by members of the diplomatic and consular corps, international organizations and other foreign diplomatic representatives, within the scope of their official work, on condition of reciprocity and within the limits of that treatment.

A29 – The law did not include a provision to exempt what workers in embassies, consulates and international organizations receive from non-members of the diplomatic and consular corps and international organizations from salaries and the like, and thus what they obtain is subject to tax on salaries and the like in addition to their performance of service in Egypt, taking into account the provisions of Double taxation avoidance agreements.

A30- The law includes in Article (13) clauses [3 and 4] provisions for exemption: Clause [3] – The subscriptions of workers in private insurance funds that are established in accordance with the provisions of the Private Insurance Funds Law No. 54 of 1975. Clause [4] – Life and health insurance premiums for his benefit or for his spouse or minor children, or any insurance premiums for pension entitlement. – 10 — It was stated in the same article that it is a condition for these two items that the total exemption for the taxpayer from it does not exceed 15% of the net revenue or three thousand pounds per year, whichever is greater, and it is not permissible to exempt the same contributions and installments from any other income stipulated in Article (6) of the law . In accordance with this condition, the following is done: The 15% of the income is calculated as follows: – If the 15% percentage is less than 3000 pounds, the maximum deduction from the taxable revenue is 3000 pounds and the amount paid or 3000 pounds, whichever is less. – If the 15% percentage exceeds 3000 pounds, the maximum amount to be deducted from the taxable revenue is the amount paid or the 15% of the income, whichever is less.