The Egyptian Government is planning to adopt a fully-fledged Value Added Tax (VAT) System, which will replace the current General Sales Tax (GST) System. We understand taht the VAT draft law has now been sent to Parliament for endorsement and we expect it to be released in the coming weeks. However, an implementation date has not yet been confirmed by the government.
Read more here:
I recommend our next webcast, 2 June 2015 focusing on – Introduction of VAT in Egypt and update on Middle East.Read More »
Under Egypt’s five-year strategy launched in October 2014, VAT legislation is expected to be introduced in the second half of this year as a transition from the current General Sales Tax (GST) to a full fledged Value Added Tax (VAT) System. Read More »
In a recent statement, the Egyptian Minister of Finance announced that the legislation introducing a VAT system might be published in early 2015 (January or February). The proposed time of implementation would be at around the middle of the year to allow taxpayers to prepare their accounts, software and systems to apply the new tax. Read More »
Based on the Investment Law no. 8 of 1997 there is a system of free trade zones in Egypt which allows to store imported goods without tax consequences within the free zone (no GST or custom duty will be due on sales within the free trade zone). Egypt has a general sales tax system which works similar as known VAT systems in Europe. When the goods are imported from the free zone into the country GST and custom will apply. Importation for trade purposes into Egypt is only allowed for companies which are 100% owned by Egyptian shareholders. Egyptian free zone companies are not subject to corporate income tax on the activities approved and licensed by the General Authority for Investment (“GAFI”). These companies are also exempt from GST for this type of activities.
PwC Switzerland ITX
Michaela Merz 