Amendments to the Executive Regulations of the Customs Law

The MoF issued the following Decrees introducing amendments to the ER of the Customs Law, issued by virtue of the MoF Decree No. 430 of 2021:

1. Decree No. 209 of 2023 (the “Decree”)

Issuance Date: 19 April 2023.

Purpose:

• The Decree has added new provisions to Customs Law ER regarding the payment of the amount of suspended due taxes and fees for temporarily released electric vehicles following the provisions of Articles 173 and 174 of the ER. Also, the newly added provisions allow the Egyptians residing abroad to pay the mentioned amount in its equivalent in EGP.
• The Decree amended several provisions concerning the procedures and requirements of the temporary vehicle release, the payment of its related suspended due taxes and fees

Entry into Force: 20 April 2023.

2. Decree No. 268 of 2023 (the “Decree”)

Issuance date: 29 May 2023.

Purpose: 

The Decree replaced a provision of previous MoF Decree No. 367 of 2021, allowing the importer or his agent/representative to undertake the procedures of the prior custom release of goods and to pay 1% (one per cent) of the initially estimated customs and fees prior to its arrival to Egypt, though the final settlement and the payment of the total amount of due customs and fees after the goods arrival must occur following the effective customs tariff at the time of release.

Entry into Force: 30 May 2023.

Amendments to the Executive Regulations of the Income Tax Law

The MoF issued the following Decree introducing significant amendments to the ER of the Income Tax Law, issued by virtue of the MoF Decree No. 991 of 2005:

Decree No. 188 of 2023 (the “Decree”)

Issuance Date: 9 April 2023.

Purpose: 

The Decree added new provisions to the ER mentioned above by providing that while determining the net commercial and industrial profits subject to the tax for the taxpayers registered in the e-tax invoice system, the e-invoices shall only be taken into consideration to prove all deductible costs, starting 1 July 2023, except for the paper invoices previously issued before the date in which the taxpayers are abiding by the e-invoice system.

Entry into force: 10 April 2023.

Amendments to the Executive Regulations of the Unified Tax Procedures Law

The MoF issued the following Decree introducing significant amendments to the ER of the Unified Tax Procedures Law, issued by virtue of the MoF Decree No. 286 of 2021:

Decree No. 188 of 2023 (the “Decree”)

Issuance Date: 9 April 2023.

Purpose: 

The Decree amended Article 42 of the ER mentioned above by providing the following:

i. The data included in the e-invoice or the e-receipt, in addition to those stipulated in Article 37, are as follows:

• the good’s or service’s code following the unified codifying system;
• the registration of the exchange rate at the rate of the Central Bank of Egypt, if the invoice is issued in foreign currency;
• the identification of the buyer (company, person, foreigner, etc.);
• the company’s activity code, as well as the branch issuing the invoice code;
• the ID number of the buyer or beneficiary or his passport no. for the foreigners if the amount of the invoice exceeded the limit to be determined by the chief of the Egyptian Tax Authority ( “ETA” ); and
• UUID, QR CODE, and the tax or fee type.

ii. The list of data included in the e-receipt, in addition to the list mentioned above, shall include the following:

• the serial number of the selling point;
• payment method; and
• the reference identifying number in some cases.

iii. Finally, the list of data to include in the professional receipt should contain the following:

• the service provider’s name, tax registration no., ID no.;
• the address of headquarter or branch,
• the syndicate registration no.;
• date and code of the service, its type, its due amount; and
• the beneficiary’s name and ID no.

Entry into Force: 10 April 2023.

Amendments to the Executive Regulations of the VAT Law

The MoF issued the following Decrees introducing important amendments to the ER of the VAT Law, issued by virtue of Decree No. 66 of 2017:

1. Decree No. 188 of 2023 (the “Decree”)

Issuance date: 9 April 2023.

Purpose:

The Decree introduced significant provisions to the ER as follows:

• The Decree has added a new provision to the ER of the VAT law providing in all cases of tax deduction or tax refund stipulated in Articles 22 and 30 of the VAT Law, only e-invoices shall be taken into consideration to prove the eligibility of tax deduction or tax refund, starting 1 July 2023, except for the paper invoices previously issued before the date in which the taxpayers are abiding by the e-invoice system.

Entry into force date: 10 April 2023.

2. Decree No. 249 of 2023 (the “Decree”)

Issuance date: 17 May 2023.

Purpose: 

The Decree provides specific guarantees to be presented by the industrial producer to suspendn tax payment. To benefit from such suspension, the producer must submit a commitment - by himself or his legal representative approved by the validity of a signature from the bank to the ETA or the Customs Authority - attesting that he will be paying the amount of suspended tax when due, as well as the additional tax.

Entry into force: 18 May 2023.

The Composition of the General Assembly of the Egyptian Financial Company for the Sovereign Sukuk

The MoF Decree provides the composition of the General Assembly (the “GA”) in accordance with the statute of the Egyptian Financial Company for Sovereign Sukuk (the “Company”) issued by virtue of Decree No. 216 of 2022.

Decree No. 81 of 2023 (the “Decree”)

Issuance date: 16 February 2023.

Purpose:

The Decree provides the composition of the GA of the Company chaired by the MoF and the membership of the vice minister of finance for the financial policies, deputy minister of finance for economic affairs, the Chief of Finance Sector within the MoF, who are all appointed for 3 (three) years. Also, it was provided that their membership can be subject to renewal for 1 (one) or more period(s) following the Company’s business outcome.

Entry into force date: 17 February 2023.

The Ministry of Finance Requiring Several Companies/Entities to Apply the Unification of Basis and Criteria of Wages and Salaries Calculations System

The MoF Decrees provide that the listed companies and entities shall abide by the system of unification of basis and criteria of wages and salaries calculations (the “Unification System”).

1. Decree No. 137 of 2023 (the “Decree”)

Issuance date: 13 March 2023.

Purpose:

The Decree listed 16 (sixteen) companies and entities which shall apply the Unification System as of 15 March 2023. Moreover, the Decree opens the faculty for other non-listed companies or entities to apply for the application of such system. Therefore, the ETA shall undertake the necessary procedures in this regard.

Entry into force date: 14 March 2023.

2. Decree No. 251 of 2023 (the “Decree”)

Issuance date: 20 May 2023.

Purpose:

The Decree listed 327 (three-hundred and twenty-seven) companies and entities required to apply the unification system as of 15 August 2023. Also, the Decree encourages non-listed entities and companies to apply for the application of such system.

Entry into force: 21 May 2023.