Two Separate Forms to Submit the Corporate Tax Return with Optional Different Deadlines & Changing Priority for Settling Tax Due

Tax Alert 101

Income Tax Law No. 91 of 2005, amended by Issuing Law No. 29 of 2018

Introduction:

  • Law No. 91 of 2005 was introduced on the 9th of June 2005.
  • This law underwent several amendments over the prior period.
  • Below is a review of the latest amendment of this law, as stipulated in Law No. 29 of 2018, which also includes amendments to articles (82) and (111) of Law No. 91 of 2005.

Summary of Amendments:

A- Two Separate Forms to Submit the Corporate Tax Return with Optional Different Deadlines:
  • Law 29/2018 has been issued on 22nd of April 2018 to amend corporate tax return submission forms. The main point introduced was the division of the normal tax return submission form into two separate forms, the first of which is for the original tax return, and the second for supplementary tax return information and tables.
  • The tax return submission due dates have not been changed or amended. Attached tables and supplementary tax return information can be submitted within 60 days after the deadline stated for the original tax return (4 months following the yearend) without affecting the taxpayer’s right to request postponement of the deadline.
  • Egyptian Tax Authority (ETA) will not consider the tax return submission if the supplementary information and tables are not fully submitted.
B- Changing Priority for Settling Tax Due:
  • Priorities of settling ETA debts have been amended to consider original payments due before applying interest for late payments. Prior to this amendment, the opposite was true, meaning that now tax payers have much more flexibility when settling due taxes, as they will not be subject to an additional interest for late payments as a result of not fulfilling their full tax exposure.
  • Considering tax due from the taxpayer before applying interest for late payments has a huge effect on when to stop the calculation of this interest, which was previously unaccounted for.

Amendment details:

Article 82 / First Paragraph (before amendment)

The taxpayer is responsible for submitting a yearly tax return to the concerned tax office in the form stated in the executive regulations of this law, along with the documents also stated in the executive regulation.

Article 82 / First Paragraph (after amendment):

The taxpayer is responsible for submitting a yearly tax return to the concerned tax office in the form stated in the executive regulations, within the deadlines specified in article (83). Moreover, the taxpayer should also submit all related tables and supplementary information attached with the tax return in the form stated in the executive regulations within 60 days following the tax return submission deadline. This does not affect the taxpayer’s right to submit the tax return and related tables simultaneously within the tax return deadline. Submission of the tax return will not be taken into consideration if the attached tables and supplementary information are not also submitted within the stated period using the stated method.

Article 111 / Second Paragraph (before amendment):
Priorities of settling debts related to the tax authority are as follows:
1.  Administrative and legal expenses.
2.  Late payment interest.
3. Tax withheld at source.
4. Taxes due.

Article 111 / Second Paragraph (after amendment):
Priorities of settling debts related to tax authority are as follows:
1.  Administrative and legal expenses.
2. Tax withheld at source.
3. Taxes due.
4.  Late payment interest.

Responsibility and Commitment:

Andersen Tax & Legal Egypt’s tax team has prepared this summarized tax report to introduce Law No. 29 of 2018.

Efforts had been combined to produce this report 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 issuing specialized consultation. Please contact Andersen Tax & Legal Egypt for tailor made solutions.


Please note that the executive regulation of this law has not yet been issued.
21st of May 2018

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