Foreign Exchange Variance Accepted for Value Added Tax (VAT) Purposes & Taxpayer Electronic Profile Activation
Tax Alert 106
A – FOREIGN EXCHANGE VARIANCE ACCEPTED FOR VALUE ADDED TAX (VAT) PURPOSES:
- Instructions 12/2018 has been issued on September 23, 2018 stating that the foreign exchange rates difference stated in decree 418/2016 and 92/2017 related to income tax law 91/2005 should be applied for VAT to those companies which its operation needs to deal with foreign currency and specially exportation and importation activities as per ratios mentioned in these decrees as follows:
|Year||January to June of 2016||July to September of 2016||October 2016|
In exception for companies that provides a bank certificate approving that the revenue is collected in equivalent Egyptian pounds.
B – Taxpayer Electronic profile activation:
- Instructions 14/2018 has been issued on October 3, 2018 stating that electronic tax return submission is activated through governmental electronic portal. This can be applied regarding corporate income tax return and VAT returns whether the company has ERP system or not.
Responsibility and Commitment:
Andersen Tax & Legal Egypt’s tax team has prepared this summarized tax report to introduce instructions 12/2018 and 14/2018.. 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.
Copyright © 2018 Andersen Tax & Legal Egypt, All rights reserved