WHT Rate Amendments.

Tax Alert 105

Egyptian Minister of Finance issued 4 decrees No. 379, 380, 381 and 382 regarding amendments in the withholding tax as follows:

A- Decree No. 379 of 2018 related to article No. 67 amending decree No. 534 of 2005:

Customs Authority is obliged to collect 1 % withholding tax on payment from import values instead of 0.5 % from taxpayers related to tax on industrial, commercial activities or corporate income tax.
This is to be applied starting from 15th of August 2018.

B- Decree No. 380 of 2018 related to article No. 59 amending decree No. 537 of 2005:

The withholding tax rates that should be deducted according to article No.59 of Corporate Income Tax Law No. 91 of 2005 will be as follows:

This table represents the amount collected before and after the issuance of such decree:

Activity Nature WHT Rate Before Decree No. 380 WHT Rate After Decree No. 380
1 Contracting and supplying, except for the supply of agricultural crops to the government and the public sector from the owners of the farms within the limits of their farms. 0.5% 1%
2 Purchases. 0.5% 1%
3 a- Services 2% 3%
b- Amounts that are paid by cooperative organizations for transportation for their members against their cars. 0.5% 1%
c- Agency commission and brokerage 5% 5%
d- Deductions, grants, commissions and exceptional and additional incentives that are granted by tobacco, fertilizer, and cement companies. 5% 5%
e- All deductions, grants and commissions that are granted by oil & gas companies to their distributes. 2% 2%

 This is to be applied starting from 15th of August 2018.

C- Decree No. 381 of 2018 related to article No. 71 amending decree No. 530 of 2005:

All forms of court archives, degrees, authentication offices and authorities should collect the below withholding tax amounts, under account of the tax due to the lawyers as follows:

This table represent the amount collected before and after the issuance of such decree:

Procedure Amount Collected Before Decree No. 381 Amount Collected After Decree No. 381
1 Any lawsuit or appeals or documents that are signed by a lawyer that is registered in the Bar Association, before the Court of First Instance. EGP 5 EGP 20
2 Any lawsuit or appeals or documents that are signed by a lawyer that is registered in the Bar Association, before the Court of Appeal EGP 10 EGP 50
3 Any lawsuit or appeals or documents that are signed by a lawyer that is registered in the Bar Association, in front of the Court of Cassation. EGP 15 EGP 100

This is to be applied starting from 15th of August 2018.

D- Decree No. 382 of 2018 related to article No. 71 amending decree No. 532 of 2005, specifically for doctors or medical specialist:

Any doctor / medical specialist that works in a hospital for his own benefit, the hospital should collect a withholding tax amounting to EGP 100 from each job carried out, and this will be under the account of the income tax on non-commercial activities that doctors/specialists are eligible for.

This is to be applied starting from 15th of August 2018.

Responsibility and Commitment:
Andersen Tax & Legal Egypt’s tax team has prepared this summarized tax report to introduce Decree No. 379, 380 and 381 of 2018. Efforts have 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 for issuing specialized consultations. Please contact Andersen Tax & Legal Egypt for tailor made solutions.

 


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