ARAB REPUBLIC OF EGYPT
MINISTERIAL DECREE NO. 286 OF 2021
Issued by the Minister of Finance on 3 June 2021
Published on 3 June 2021 in the Egyptian Official Gazette, Issue No. 123 (Supplement C)
Effective as of 4 June 2021
Issuing the Executive Regulations of the Unified Tax Procedures Law
promulgated by Law No. 206 of 2020
Dr. Mohamed Maait — Minister of Finance
PREAMBLE
Having reviewed the Constitution;
The Civil Code;
Law No. 133 of 1951 governing the practice of accounting and auditing;
Law No. 308 of 1955 on administrative attachment;
The Code of Civil and Commercial Procedure promulgated by Law No. 13 of 1968;
The Stamp Tax Law promulgated by Law No. 111 of 1980;
Law No. 147 of 1984 imposing the State Financial Resources Development Levy;
The Commercial Code promulgated by Law No. 17 of 1999;
Law No. 15 of 2004 regulating electronic signatures and establishing the Information Technology Industry Development Authority;
The Income Tax Law promulgated by Law No. 91 of 2005;
The Value Added Tax Law promulgated by Law No. 67 of 2016;
The Investment Law promulgated by Law No. 72 of 2017;
Law No. 18 of 2019 on regulating the use of non-cash payment instruments;
Law No. 152 of 2020 on the development of micro, small, and medium enterprises;
The Unified Tax Procedures Law promulgated by Law No. 206 of 2020;
The Executive Regulations of the Income Tax Law issued by Ministerial Decree No. 991 of 2005;
The Executive Regulations of the Stamp Tax Law issued by Ministerial Decree No. 525 of 2006;
The Executive Regulations of the Value Added Tax Law issued by Ministerial Decree No. 66 of 2017;
The Executive Regulations of Law No. 147 of 1984 issued by Ministerial Decree No. 547 of 2020;
Ministerial Decree No. 593 of 2020 on the distribution of tax offices across the tax districts specified in the organisational structure of the Egyptian Tax Authority;
And pursuant to the opinion of the Council of State;
THE MINISTER DECREES:
ENACTING ARTICLES
Article 1 — Enacting
The Executive Regulations of the Unified Tax Procedures Law promulgated by Law No. 206 of 2020, appended to this Decree, shall enter into force.
Article 2 — Enacting
For the purposes of applying Article 3 of the enacting provisions of Law No. 206 of 2020 promulgating the Unified Tax Procedures Law, a taxpayer filing an annual income tax return shall be required to remit the tax due as shown in that return after deducting the following:
(1) Advance payments previously made by the taxpayer.
(2) The return on advance payments, excluding fractions of months and pounds, calculated in accordance with the following formula:
Payment amount × the credit and discount rate announced by the Central Bank of Egypt on 1 January of the preceding year × (the period from the date of payment to the end of the tax period ÷ 12 months).
Article 3 — Enacting
Articles (2, 3/second paragraph, 6, 7, 8, 9) of the Executive Regulations of the Stamp Tax Law issued by Ministerial Decree No. 525 of 2006 are hereby repealed.
Articles (22, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99, 102, 103, 104, 105, 106, 107, 108, 112, 115, 116, 118, 120, 121, 122, 123, 124, 126 bis, 126 bis (1), 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144, 145, 146) of the Executive Regulations of the Income Tax Law issued by Ministerial Decree No. 991 of 2005 are hereby repealed.
Articles (13, 14, 15, 16/17 final paragraph, 23, 24/39 first paragraph, 44, 57, 58, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 73, 74) of the Executive Regulations of the Value Added Tax Law issued by Ministerial Decree No. 66 of 2017 are hereby repealed.
Article 4 — Enacting
Articles 99 bis (1), 99 bis (2), 99 bis (3), and 99 bis (4) of the Executive Regulations of the Income Tax Law issued by Ministerial Decree No. 991 of 2005 shall remain in force until the Minister of Finance or his delegated representative issues a decree declaring the completion of the electronic invoicing system.
Article 5 — Enacting
This Decree shall be published in the Egyptian Official Gazette and shall take effect on the day following the date of its publication.
PART ONE: GENERAL PROVISIONS
Chapter One: Definitions
Article 1
For the purposes of applying the provisions of these Regulations, the following terms and expressions shall have the meanings set out beside each:
Minister: the Minister of Finance.
Authority Head: the Head of the Egyptian Tax Authority.
Law: the Unified Tax Procedures Law promulgated by Law No. 206 of 2020.
Authority: the Egyptian Tax Authority.
District: the district within whose jurisdiction the competent tax office falls.
Competent Tax Office: the tax office within whose jurisdiction the taxpayer’s or obligor’s principal place of business is located, or which issued the tax card or registration certificate. Where a taxpayer or obligor has multiple establishments and branches, the competent tax office shall be the one having jurisdiction over the principal place of business as shown in the commercial register. The Authority Head may, by a decision issued by him, designate a specific competent tax office for particular activities, taxpayers, or obligors.
Electronic Receipt: the electronic document issued by a seller of goods or a service provider to the consumer or beneficiary, in accordance with the controls and provisions set out in these Regulations.
Service Provider: the legal entity holding a licence to operate the electronic system, whose principal role is to act as an intermediary in receiving electronic invoices from their source and transmitting them to the Authority after verifying their compliance with the statutory formal requirements.
Coding System: a system used to classify goods and services whereby a distinctive code is assigned to each good or service for use in issuing electronic invoices or receipts. The type of coding shall be determined by a decision of the Authority Head.
Related Person: any person connected to a taxpayer by a relationship that directly or indirectly affects the determination of the tax base, whether through management, control, or ownership. Generally, two persons are considered related where the relationship between them is such that one or both of them may act in accordance with the directions, requests, suggestions, or wishes of the other or of a third party.
The following persons shall be treated as related persons:
(1) Spouses, ascendants, and descendants, as well as relationships among them.
(2) A partnership and its general and limited partners.
(3) A joint-stock company and any person who directly or indirectly holds at least fifty per cent (50%) of the voting or management rights, profit distribution rights, or share capital rights in that company.
(4) Two or more companies in which another person holds or controls at least fifty per cent (50%) of the voting or management rights, profit distribution rights, or share capital rights in both companies.
When applying items (2), (3), or (4) of the preceding paragraph, ownership or control attributed to a person by a related person may not be attributed to another related person.
Two persons shall not be considered related merely because one of them is an employee or agent of the other, or because both are employees or agents of a third party, unless that relationship directly or indirectly affects the determination of the tax base.
Chapter Two: Notifications, Announcements, and Payment
Article 2
Notifications and announcements made by taxpayers, obligors, or third parties in application of the provisions of tax laws through the Egyptian Tax Authority’s electronic portal shall be deemed equivalent to submission to the competent tax office or authority.
Payment made through non-cash payment instruments shall likewise be deemed equivalent to payment to the competent tax office or authority.
Chapter Three: Language
Article 3
For the purposes of applying Article 2 of the Law, the Authority may accept data, information, records, and documents relating to tax in any language. The Authority may require that specified data, information, records, and documents relating to tax be translated into Arabic by an accredited office or body. The Authority Head shall publish a list of the names and addresses of offices and bodies accredited to provide certified translations, provided that such offices and bodies are duly licensed by the relevant authorities.
PART TWO: RIGHTS AND OBLIGATIONS OF TAXPAYERS, OBLIGORS, AND OTHERS, AND THE ORGANISATION OF TAX ADMINISTRATION
Chapter One: Rights of Taxpayers and Obligors
Article 4
Awareness of the provisions of tax law and of the rights it guarantees to taxpayers, obligors, and other interested parties shall be disseminated through all available media — print, audio, and visual, electronic and otherwise — including in particular the websites of the Ministry of Finance and the Authority, social media platforms, informational booklets, and other means.
Article 5
Taxpayers, obligors, and other interested parties shall be entitled to obtain, free of charge, tax forms and printed materials, as well as circulars, instructions, and operational manuals issued by the Authority and available at its offices or on its electronic portal.
Article 6
A taxpayer or obligor, or his legal representative, may inspect his tax file upon submitting a written request to the competent tax office. The tax office shall afford him access within a maximum of three working days from the date of submission of the request. Completion of the inspection shall be recorded on the request submitted by the interested party. The heirs of a deceased taxpayer or the transferee of an establishment shall have the right of inspection in accordance with the applicable legal rules.
Article 7
The right of inspection referred to in the preceding Article shall extend to registration data, inspection and discussion reports, operational records, the audit memorandum, notifications, and forms relating to the assessment and collection of tax, including the notice of demand for payment and attachment records.
A taxpayer, obligor, or legal representative, or other interested parties, may request photocopies of the documents referred to in the preceding paragraph.
Article 8
The Authority shall be obliged to respond in writing — by any conventional or electronic means — to every enquiry submitted by a taxpayer, obligor, or other party regarding his tax status or position.
Article 9
The Authority shall maintain the confidentiality of taxpayers’ and obligors’ tax and technical information and shall not disclose any data to or permit access by third parties except within the limits and circumstances set out in Article 6 of the Law.
Article 10
No field tax inspection may be conducted except in the presence of the taxpayer or obligor, or his legal representative, after notification of the inspection date in accordance with Article 41 of the Law.
If the taxpayer, obligor, or his legal representative fails to appear despite having been notified of the inspection date, the Authority shall be entitled to proceed with its work.
The cases referred to in the second paragraph of Article 41 of the Law are excepted from this requirement.
Chapter Two: Obligations of Taxpayers, Obligors, and Others
Article 11
For the purposes of applying Article 8 of the Law, notifications shall clearly state the name of the licence or practice certificate applicant and all related data, using Form No. (1 — Census).
Article 12
Notification of the competent tax office of the use of a property or part thereof for carrying out a taxable activity pursuant to Article 9 of the Law shall be made on Form No. (1 — Census) within thirty days of the commencement of such use.
The notification shall contain in particular the following information:
(1) The name of the owner or beneficiary of the property.
(2) The address of the property.
(3) The area of the property.
(4) The purpose for which the property has been leased, where applicable.
(5) The name of the operator, address of his place of residence, and his national identity number.
Article 13
For the purposes of applying Article 10 of the Law, proof of payment of the tax due on passenger or freight vehicles owned by any private-sector entity shall be submitted to traffic departments using Form No. (7/5 — Inspection).
Article 14
For the purposes of applying Article 12 of the Law, non-resident legal entities conducting business through a permanent establishment shall be subject to the provisions of Articles 12 and 13 of the Law.
All legal entities — including companies operating under the free zone system and permanent establishments of non-resident legal entities — shall be required to submit a report or notification on a country-by-country basis, as applicable, in accordance with the guidelines issued by the Minister.
The term ‘commercial and financial transactions’ for the purposes of the first paragraph of Article 12 of the Law means all transactions conducted by the taxpayer with related persons, including but not limited to:
Purchase and sale of goods and services of all types.
Purchase and sale of assets.
Reimbursement of expenses.
Royalties.
Loans of all kinds and designations, including credit facilities.
Purchase and sale of securities.
Purchase, sale, or assignment of contracts.
Purchase and sale of intangible assets.
In the event that a taxpayer fails to submit the documentation referred to in the first paragraph of Article 12 of the Law relating to his commercial and financial transactions, the Authority shall be entitled to establish transfer pricing rules that it deems appropriate for each case based on the information available to it. The taxpayer may challenge and object to the Authority’s decision, in which case the burden of proof shall rest upon the taxpayer in accordance with Article 40 of the Law.
The exemption threshold referred to in the fourth paragraph of Article 12 of the Law shall be calculated on the basis of the aggregate value of transactions with related persons — on both the revenue and expense sides — during the taxpayer’s financial year, and not on the net value of those transactions.
Article 15
Each related person shall be required to submit the master file even where its principal place of business is in a country that does not require the submission of such file pursuant to Article 12 of the Law, in which case the maximum deadline for submitting the master file shall be the same as the deadline for submitting the local file.
The prescribed deadline for submitting the master file shall be determined as follows:
Where the parent company is resident outside Egypt: the deadline for submitting the master file shall follow the deadline for submitting the master file in the country of the parent company’s residence.
Where the parent company is resident in Egypt: the deadline for submitting the master file shall be the same as the deadline for submitting the local file.
Article 16
For the purposes of applying Article 13 of the Law, the taxpayer shall remit to the Authority an amount equal to one per cent (1%) of the value of transactions not disclosed in his annual income tax return. This amount shall be collected regardless of whether the taxpayer subsequently discloses those transactions in the local file or master file.
Article 17
Where a taxpayer exceeds the statutory deadline for submitting the master file, local file, or country-by-country report or notification, the Authority shall demand payment of an amount in respect of non-compliance with the first paragraph of Article 12 of the Law, using Form No. (3 — Payment).
Article 18
For the purposes of applying the preceding Articles, the amounts payable to the Authority in respect of non-compliance with the first paragraph of Article 12 of the Law shall be calculated on the aggregate value of transactions between related persons with respect to items (2), (3), and (4) of the final paragraph of Article 13 of the Law, and on the aggregate value of transactions with related persons that have not been declared in the case of non-disclosure with respect to item (1) of the same final paragraph, in accordance with the rates specified in Article 13 of the Law.
Article 19
The guidelines issued by the Minister shall constitute the governing framework for the data, sections, information, and rules that must be included in the master file, local file, and country-by-country report or notification. A master file, local file, or country-by-country report or notification submitted without the required data, sections, information, and rules shall have no technical or legal effect.
Article 20
Payment of the amounts due pursuant to Article 13 of the Law shall not preclude the imposition of any other fines or penalties prescribed under the Law or applicable tax legislation.
Article 21
The responsible officials of the authorities referred to in Article 14 of the Law shall notify the General Directorate for Census and Returns at the Authority — with respect to Cairo Governorate — or the tax district — with respect to governorates having a single tax district — or the First Tax District — with respect to the remaining governorates — or by any of the electronic means designated by the Authority, within a maximum period ending at the close of the month following the month in which the printing, publication, or advertising licence was issued. Such notification shall be made using Form No. (1 — Census).
Chapter Three: Organisation of Tax Administration
Article 22
The Authority’s representatives at the authorities and companies referred to in Article 18 of the Law shall monitor compliance by those authorities and companies with the provisions of the Law and applicable tax legislation. Where a violation is discovered, the representative shall document it in an operational report containing in particular:
(1) The name of the representative.
(2) The name of the authority or company.
(3) The date on which the violation was discovered.
(4) A description of the violation.
(5) The financial impact of the violation.
(6) The period during which the violation occurred.
The representative shall refer the operational report to his supervising directorate for the necessary action, including notifying the authority or company of the violation and demanding the amounts due, using Form No. (11 — Inspection) as appropriate to the type of violation.
Article 23
Where any of the circumstances listed in Article 21 of the Law that prohibit an Authority employee from participating in or conducting any tax proceeding are present, that employee shall disclose the matter in writing to his direct superior; failure to do so shall render the employee liable to disciplinary action.
Article 23 bis
For the purposes of applying Article 24 of the Law, the Authority shall conduct periodic surveys of employees whose service has ended for any reason, recording their particulars and the positions they held and their employers prior to separation in a dedicated register that is updated periodically, then published and circulated to all units of the Authority through all available means of publication. This is to prohibit them — whether acting in person or through an agent — from participating in any of the tax files in which they previously participated in the inspection, review, or any tax assessment proceeding, or in which they had a direct or indirect connection with any taxpayer, registered person, or obligor, for a period of five years from the date their service ended. Violators shall bear disciplinary liability.
Employees of the Authority referred to in the first paragraph of this Article shall, upon each interaction, disclose in writing to the Authority whether any of the circumstances listed in Article 24 of the Law are present; failure to do so shall result in the Authority refusing to deal with them in that matter.
PART THREE: TAX REGISTRATION
Chapter One: Registration
Article 24
For the purposes of applying Article 25 of the Law, every taxpayer or obligor shall apply to the competent tax office for registration — manually or by any electronic means having legal evidentiary weight — using Form No. (1 — Registration) for natural persons and Form No. (2 — Registration) for legal entities.
Registration may be effected electronically in accordance with the electronic systems determined by a Ministerial Decree.
The registration application shall state the names and addresses of branches and their activities, and shall be accompanied by copies of the following documents, as appropriate to the nature of each activity (originals to be presented for review):
(1) National identity card / passport.
(2) Tax card (for joint-stock companies / partnerships / natural persons).
(3) Partnership agreement or establishment decision for other entities.
(4) Commercial register.
(5) Lease / ownership contract.
(6) Import / export card.
(7) Power of attorney from the interested party, where an agent is acting.
(8) Proof of syndicate registration and professional practice licence number, in the case of providers of professional and consultancy services.
Where the registration application is incomplete, the competent tax office shall notify the taxpayer or obligor using Form No. (1/8 — Registration) to furnish the outstanding information within fifteen days of the date of notification.
Where the taxpayer or obligor fails to submit the registration application, the competent tax office shall register him based on the data and information available to it and shall notify him of his registration using Form No. (10 — Registration).
The obligation to submit a registration application in respect of legal entities shall rest upon the legal representative of the legal entity, its manager, its delegated board member, or the person responsible for management, as applicable.
The competent tax office shall record and number registration applications in a dedicated register in sequential order by date of receipt.
Chapter Two: Tax Card
Article 25
For the purposes of applying Article 27 of the Law, the competent tax office shall issue a tax card to every taxpayer engaged in commercial, industrial, craft, non-commercial, or professional activities within five working days of the date on which the application for the card is submitted with all required data and documents. The application for the tax card shall be made on Form No. (1 — Registration of Natural Persons) or Form No. (2 — Registration of Legal Entities), as applicable.
Article 26
The taxpayer’s tax card shall contain the following data:
(1) Tax registration number.
(2) The serial number of the card as entered in the tax card register.
(3) Code of the tax office.
(4) Name of the taxpayer.
(5) Address of the taxpayer.
(6) Activity of the taxpayer.
(7) Address of the business activity (trade name).
(8) Social insurance number.
(9) Commercial register number or professional practice licence number, as applicable.
(10) Company register number or any other relevant register number, as appropriate to the nature of the activity.
(11) Address of the principal place of business, branches, and warehouses.
(12) Date of commencement of each activity.
(13) Legal form.
(14) Return data [return year — return date — authorised signature of the tax office — details of the person responsible for electronic invoicing].
(15) Details of tax exemptions.
(16) Indication of whether the taxpayer is subject to the advance payments system.
(17) Date of issue and date of expiry.
A taxpayer may obtain a data certificate containing the information referred to in the first paragraph of this Article upon request.
Article 27
Registration certificates for obligors shall be issued on Form No. (3) and must be approved by the head of the tax office and stamped with the State emblem seal.
Following issuance, the certificate shall be sent to the obligor together with a notification of registration form prepared for that purpose. Where the registered obligor has other branches, a registration certificate shall be issued for each branch on Form No. (3).
A registered obligor shall be required to display the registration certificate or branch registration certificate in a prominent location visible to the public at the principal place of business and branches.
The registration certificate shall bear its date of issuance and date of expiry.
Article 28
Notification by the taxpayer or obligor to the competent tax office of any changes to data previously submitted at registration shall be made on Form No. (6 — Registration).
Article 29
The validity of a tax card or registration certificate shall be five years from the date of its issuance. A taxpayer or obligor may apply for renewal using Form No. (5 — Registration). In the event of loss or damage, a replacement may be requested using Form No. (4 — Registration).
PART FOUR: TAX RETURNS
Article 30
The return referred to in item (a) of Article 31 of the Law shall be submitted on Forms No. (10, 111 — Reverse Charge) within the month following the end of each tax period, together with payment of the tax and table tax, or either one as applicable, by one of the non-cash payment instruments prescribed by law. The obligor shall be required to attach, to the electronic return submitted through the Authority’s electronic portal, data relating to tax invoices for sales and purchases during the tax period; an electronic return unaccompanied by such data shall not be accepted.
Article 31
[As amended by Ministerial Decree No. 20 of 2023, effective 12 January 2023]
The quarterly payroll tax return referred to in item (b) of Article 31 of the Law shall be submitted on Form No. (4 — Payroll) through the Authority’s electronic portal or any other electronic channel designated by the Minister of Finance. The employer shall register and obtain a confidential password, and shall bear full responsibility for what is submitted.
The employer shall submit proof of payment of the tax due as shown in the return, by one of the prescribed payment instruments and within the statutory deadlines.
The employer shall disclose in the return all required data, including in particular:
(1) The number of employees and their complete details.
(2) The aggregate salaries and similar payments disbursed during the preceding three months.
(3) The monthly amounts withheld on account of tax, calculated through the unified salary and wages tax calculation system pursuant to decrees issued by the Minister of Finance specifying the entities required to join the system, as well as the amounts paid for the period referred to in item (2), together with copies of payment receipts.
(4) Changes in the number of employees, whether increases or decreases.
The annual settlement return shall be submitted on Forms No. (6, 7, 8, and 9 — Settlements), as applicable.
Article 32
Every natural person shall be required to submit the annual income tax return referred to in item (c) of Article 31 of the Law to the competent tax office before 1 April of each year, on Form No. (27).
Every taxpayer that is a legal entity shall be required to submit its tax return to the competent tax office before 1 May of each year, or within the four months following the end of its financial year, on Form No. (28).
State-owned banks, public sector companies and units, public business sector companies, and public legal entities engaged in taxable activities may submit a final return within thirty days of the date on which their general assembly approves their accounts, on Form No. (29), together with payment of any balance of tax due as shown in that return.
Article 33
For the purposes of the final paragraph of Article 31 of the Law, certification of a return by a certified public accountant registered in the general register of accountants and auditors pursuant to Law No. 133 of 1951, or by the Central Auditing Organisation as applicable, shall constitute a declaration that the net taxable profit or loss as stated in the return has been prepared in accordance with the provisions of applicable tax law.
The return shall be signed by a certified public accountant registered in the register of accountants and auditors in the case of joint-stock companies and co-operative associations regardless of their turnover, and in the case of natural persons and partnerships where the turnover of any of them exceeds two million Egyptian pounds per annum.
PART FIVE: TAX CONTROL
Chapter One: Tax Evidence
Article 34
[As amended by Ministerial Decree No. 309 of 2023, effective 6 July 2023]
For the purposes of applying Article 35 of the Law, companies and other legal and natural entities engaged in the sale of goods or the provision of services — whether producers, traders, distributors, service providers, exporters, importers, or distribution agents — shall comply with the following requirements and standards for the electronic invoicing system:
(1) Obtaining an electronic signature certificate.
(2) Using the unified coding system for goods and services, the type of which shall be determined by a decision of the Authority Head.
(3) Contracting with a service provider, or submitting invoices through the Authority acting as a service provider, in cases specified by a decision of the Authority Head.
(4) Providing the data required to register the person responsible for managing the tax invoice system (name — capacity — national identity number — email address — telephone number).
(5) Carrying out the necessary steps for integration and interconnection with the electronic invoicing system, in the case of taxpayers who have an ERP system (invoice issuance system).
The electronic invoicing system shall be applied in phases, as determined by the Minister upon the recommendation of the Authority Head.
The Authority shall issue a certificate confirming that taxpayers or registered persons bound to issue electronic invoices or receipts, as applicable, are in compliance, using Form No. (3) appended to this Decree. The taxpayer or registered person to whom the certificate is issued shall be required to display it in a prominent location visible to the public at the principal place of business and branches.
Article 35
The following technical specifications and standards shall apply to the electronic invoicing system:
(1) The invoice source must hold a valid electronic signature.
(2) The unified coding system for goods and services, as determined by a decision of the Authority Head, must be used.
(3) Invoices must be transmitted in real time to the electronic system through the service provider or the Authority for the purpose of verifying the validity of the invoice and the electronic signature of the invoice source.
(4) The invoice must contain the essential fields and data, as determined by a decision of the Authority Head.
(5) The Authority shall issue a unique reference number for each electronic invoice stored in the Authority’s system.
(6) Once the Authority has approved a received electronic invoice and assigned it a unique reference number, the invoice source shall be notified that the invoice has been received, verified, and accepted.
Article 36
The following standards shall apply to the security of electronic invoices:
(1) A person authorised to manage dealings with the electronic invoicing system shall be designated, with relevant personal data provided (name — capacity — national identity number — email address — telephone number). The authorised person shall be entitled to add other users to the system and grant them specific permissions within the scope of those permissions.
(2) The system access password shall be maintained and protected against loss or theft.
(3) Administration of homepage data — limited to changing email addresses and telephone numbers and designating notification receipt channels — shall be restricted to the system administrator.
(4) The right to issue, review, and cancel electronic invoices shall be restricted to the persons authorised to manage the system.
(5) Each invoice shall be electronically signed in accordance with the applicable technical and legal requirements for electronic signatures.
(6) The private cryptographic keys associated with the electronic signature certificate shall be protected against compromise upon receipt.
(7) The cryptographic keys used for integration between the taxpayer’s or obligor’s electronic system and the electronic invoicing system shall be protected.
Article 37
For the issuance of a licence to a service provider to operate the electronic invoicing system pursuant to the final paragraph of Article 35 of the Law, the following controls, conditions, and procedures shall be satisfied:
First — Controls and conditions for granting a licence:
(1) The licence applicant must be an Egyptian joint-stock company (wholly Egyptian-owned).
(2) Payment of the licence fee, as determined by a Ministerial Decree.
(3) Compliance with the technological operational requirements pre-specified by the Authority.
(4) The legal representative of the company must not have previously been convicted of a tax evasion offence.
(5) Management, control over, and protection of the digital seals issued to it, on the basis of which it is licensed to perform its functions.
Second — Procedures for granting a licence:
(1) Submission of an application to the Authority for a licence to act as a service provider.
(2) Submission of a Service Level Agreement (SLA) in accordance with the applicable technical requirements and international standards.
(3) Submission of a financial guarantee, the value of which shall be determined by a Ministerial Decree.
(4) Submission to the Authority of a financial position report for the company covering the financial year preceding the submission of the licence application.
(5) Submission of a registration application to the Authority as a service provider, or addition of this activity to the existing tax card if already registered with the Authority.
Approval of the licence shall be issued by a Ministerial Decree upon the recommendation of the Authority Head. The data of companies approved as service providers shall be published on the Authority’s electronic portal.
Article 38
A licensed service provider shall be obliged to:
(1) Ensure that invoices received from taxpayers or obligors are transmitted to the Authority within the time period specified by the Authority Head from the time of their receipt.
(2) Notify the Authority of any updates to its data should any change occur.
(3) Obtain the Authority’s approval with respect to any technological changes made after the licence is granted.
(4) Submit a monthly report on its operations, including — by way of example — the number of invoices received from taxpayers or obligors and the number of invoices transmitted to the Authority for the same period.
(5) Submit to a bi-annual review of its service performance level.
(6) Maintain confidentiality and not disclose any data or information that comes to its knowledge in its capacity as a service provider, and submit a written undertaking to that effect.
Article 39
A service provider licence shall be valid for three years from the date of its issuance. Should the service provider wish to renew its licence for a further period, it shall submit an application to the Authority at least three months before the expiry of the licence, provided that the financial guarantee remains valid and all required licence conditions are satisfied. The Authority shall process the renewal application within the three-month period referred to.
Should the service provider not wish to renew its licence, it shall submit an application to the Authority at least three months before the expiry of the licence.
Should the service provider wish to terminate the licence before its expiry, it shall submit an application to the Authority at least three months before the intended termination date and pay fifteen per cent (15%) of the value of the financial guarantee determined by the relevant Ministerial Decree.
Article 40
The Authority may revoke a service provider’s licence in the following circumstances:
(1) The service provider acts beyond the rights derived from the licence, or assigns or transfers those rights in whole or in part without the Authority’s approval.
(2) Failure to fulfil its obligations.
(3) A bankruptcy order is issued against it.
(4) The service provider obstructs the Authority or other authorised bodies from conducting verification and ensuring compliance with the service provider’s obligations.
(5) Receipt of three or more warnings during a single review period.
(6) Repeated failure to verify the presence of certain data when reviewing invoices, including the presence of the digital seal of the invoice source or its non-attribution to it.
Revocation of the licence shall be effected by a Ministerial Decree upon the recommendation of the Authority Head, specifying the date of revocation.
The service provider shall have the right to lodge a complaint against the revocation decision within thirty days of being notified of it. The Authority shall rule on the complaint within thirty days, failing which it shall be deemed rejected. In the event of revocation, the service provider shall be required to refund any amounts due to the taxpayer or obligor where it has not rendered the contracted service.
In the event of revocation, the service provider may not apply for a new licence until one year has elapsed since the revocation and the grounds for revocation have been remedied.
In all circumstances, the Authority shall publish a prompt notice on its electronic portal announcing the termination of the licence.
Article 41
Upon non-renewal of the licence or revocation of the licence by the Authority, the service provider shall comply with the following procedures:
(1) Publish a prompt notice on its website at least thirty days before the expiry of its licence announcing that it will cease providing the service as of the day following the expiry of the licence.
(2) Send an email to all taxpayers and obligors contracted with it for the service, containing the aforementioned notice, and ensure receipt thereof by the taxpayers.
(3) Upload client files and a copy of the email notification, as well as a copy of the delivery confirmation sent by clients, to the Authority’s portal.
(4) Refrain from contracting with new taxpayers or obligors.
(5) Comply with the security and confidentiality procedures for taxpayers’ and obligors’ information.
The Authority shall return the financial guarantee once the licence termination procedures have been completed.
Article 42
[As amended by Ministerial Decree No. 188 of 2023, effective 10 April 2023]
In addition to the data specified in Article 37 of the Law, electronic invoices or electronic receipts shall contain the following data:
(1) The code of the goods or services covered by the invoice, in accordance with the unified coding system as determined by the Authority Head.
(2) The exchange rate at Central Bank of Egypt rates, where an invoice is issued in foreign currency.
(3) Identification of the purchaser (company / natural person / foreign national, etc.) at the time of issuance of the invoice or receipt.
(4) The company’s activity code and the branch code of the invoice or receipt source.
(5) The national identity number of the purchaser or beneficiary, or the passport number for foreign nationals who are unregistered persons, where the value of the invoice or receipt exceeds an amount determined by the Authority Head.
(6) The UUID unique identifier.
(7) The quantity sold.
(8) The type of tax, taxes, or levies, if any.
(9) QR Code.
Electronic receipts shall contain, in addition to the data specified in the preceding paragraph, the following data:
(1) The serial number of the point-of-sale device.
(2) The method of payment.
(3) The reference identification number in the case of return receipts and credit/debit notes.
(4) The payment / subscriber number in the case of utility receipts.
Professional receipts shall contain the following data:
(1) The name of the service provider and tax registration number.
(2) The national identity number of the service provider.
(3) The address of the principal place of business / branch.
(4) Syndicate registration number.
(5) Name and national identity number of the beneficiary.
(6) Date of service provision.
(7) Type of service rendered.
(8) Amount due.
(9) Table tax due.
(10) Service code number.
Article 43
When issuing an electronic invoice, the following requirements shall be observed:
(1) Use the electronic format approved by the Authority for invoices (debit notes / credit notes).
(2) Comply with the unified codes for goods, services, and activities approved by the Authority.
(3) Record the branch code of the invoice source.
(4) Include the registration number of the purchaser if the purchaser is a taxpayer or obligor, or the purchaser’s national identity number pursuant to item (5) of the first paragraph of this Article.
(5) The taxpayer or obligor shall use the electronic signature certificate to sign its invoices electronically and transmit them to the service provider or the Authority — where acting as service provider — immediately upon their preparation, within the time period determined by the Authority Head.
(6) Deliver electronic invoices in a visible and readable form in cases where the purchaser is not registered in the electronic invoicing system; the purchaser shall be entitled to request a printed copy from the invoice source.
The purchaser may reject an invoice within the period specified by the Authority Head from the date of its issuance. The seller may likewise cancel an invoice within the period specified by the Authority Head from the date of its issuance, with the purchaser’s consent. All the foregoing requirements apply equally to debit notes and credit notes.
Article 44
No electronic payment order shall be issued to any supplier, contractor, or service provider — by companies or other legal and natural entities referred to in Article 34 of these Regulations — unless that party is registered in the electronic invoicing system established at the Egyptian Tax Authority.
The Minister shall determine the rules and controls necessary to achieve integration and interconnection between the Ministry of Finance’s electronic payment and collection system and the electronic invoicing system referred to in the preceding paragraph. The Minister shall also determine, following submission to the Prime Minister, the date of commencement of the application of this Article.
Article 45
For the purposes of applying Article 38 of the Law, every taxpayer shall maintain the books and records provided for in the Commercial Code promulgated by Law No. 17 of 1999, or regular manual or electronic accounting records and books in which all transactions are recorded on an ongoing basis, including:
(1) General journal: in which all transactions of the taxpayer are recorded on an ongoing basis.
(2) General ledger.
(3) Subsidiary journals and ledgers: determined according to the nature, type, scale, and activity of the establishment.
(4) Inventory book: in which the items, assets, and liabilities of the establishment are recorded based on a physical count at the end of the financial year.
(5) Stock book: maintained by taxpayers whose activity is exclusively wholesale trade.
(6) Exports book: containing details of export consignments, including the export certificate number, date of export, port of export, and destination.
In all cases, the books maintained by the establishment shall be complete, accurate, and regular in form, and shall enable the determination of net taxable profit based on the results of all types of operations in accordance with Article 27 of the Law.
(7) Original source documents, including contracts, purchase invoices, credit/debit notes, receipts, and correspondence received from third parties, together with copies of sales invoices, credit/debit notes, receipts, and correspondence issued by the establishment in support of all its transactions.
Article 46
By way of exception to the books referred to in the preceding Article, every taxpayer who is a natural person engaged in a professional or craft activity shall be required to maintain the following books:
(1) Revenue book: in which all revenues received by the taxpayer during the year are recorded.
(2) Expenses book: in which all costs and expenses incurred in carrying out the activity during the year are recorded.
(3) Receipts book: comprising an original and a copy, stamped with the seal of the taxpayer’s tax office. The original shall be delivered to the client and the copy presented to the competent tax office upon request.
In all cases, where the taxpayer uses computer systems, the data files used shall be accepted in lieu of the aforementioned books, provided they satisfy the controls specified by a decree of the Minister or his delegated representative.
Article 47
Data printouts from cash register machines (‘cash register rolls’) relating to the amount of tax shall be accepted where the taxpayer or obligor uses cash registers or electronic point-of-sale devices.
The Authority Head shall issue the rules and procedures that ensure their regularity and facilitate their monitoring and review.
Article 48
For the purposes of applying Article 39 of the Law, the competent tax office shall record by means of an approved memorandum, accompanied by supporting documents, the grounds for correcting, amending, or disregarding a return, or for amending an assessment in accordance with the provisions of applicable tax law.
The taxpayer or obligor shall be notified of the correction, amendment, or disregarding of the return or the amendment of the assessment, together with a statement of the grounds therefor.
Chapter Two: Tax Inspection
Article 49
Subject to the provisions of Article 41 of the Law, notification to the taxpayer or obligor of the date, location, and estimated duration of the inspection shall be given using Form No. (4 — Inspection) by registered post with acknowledgement of receipt, by any electronic means having legal evidentiary weight, or by any written means by which notice can be confirmed, at least ten days in advance.
The competent tax office may request data and copies of documents and records, including client and supplier lists, from the taxpayer or obligor using Form No. (3/4 — Inspection).
The taxpayer or obligor shall be required to provide such data and documents to the tax office within fifteen days of the date of the request. The taxpayer or obligor may request an extension of that period for an equal further period using Form No. (1/4 — Inspection).
The competent tax office shall notify the taxpayer or obligor of the Authority Head’s approval of — or refusal to extend — the period using Form No. (2/4 — Inspection), stating the grounds in the event of refusal.
Chapter Three: Notification of Assessment
Article 50
[As amended by Ministerial Decree No. 42 of 2023, effective 25 January 2023]
The Authority shall amend a return submitted by a taxpayer or obligor if it determines that the tax amount that should have been declared differs from what appears in that return for any tax period.
Where a taxpayer or obligor fails to submit a return, or where any of the grounds for disregarding a return are present, the Authority shall be entitled to assess the tax on the basis of the data and information available to it.
In all cases, the competent tax office shall notify the taxpayer or obligor of the amendment to or assessment of tax using Forms No. (19 — Income Tax, 19 — Stamp Tax, 14 — Value Added Tax, 15 — Value Added Tax), as applicable.
Where the Authority establishes the existence of revenues in respect of which the taxpayer or obligor has not previously been assessed, it shall assess and notify the taxpayer or obligor of the amendment using Forms No. (19 bis — Income, 19 bis — Stamp, 15 — Value Added Tax), as applicable.
Notifications using the aforementioned forms shall be effected by registered post with acknowledgement of receipt, by any electronic means having legal evidentiary weight, or by delivery of the form at the place of business or at the tax office under a report signed by the taxpayer, obligor, or his representative.
Article 51
The limitation period referred to in the first paragraph of Article 44 of the Law shall be interrupted by notification of the tax assessment particulars, by demanding that the taxpayer or obligor remit the tax, or by referral to the appeal committees.
The limitation period shall also be interrupted by any of the grounds set out in the Civil Code, including judicial demand even where the action is brought before an incompetent court, notice, attachment, a creditor’s proof of claim in insolvency or distribution proceedings, any act taken by the Authority to assert its right in the course of any proceedings, or by an express or implied admission by the taxpayer or obligor.
PART SIX: COLLECTION
Chapter One: Payment of Tax
Article 52
[As amended by Ministerial Decree No. 42 of 2023, effective 25 January 2023]
For the purposes of applying Article 45 of the Law, collection of unpaid tax, late payment charges, additional tax, and other amounts shall be made pursuant to enforceable demands using Form No. (3 — Payment).
Article 52 bis
[As amended by Ministerial Decree No. 538 of 2023, effective 8 December 2023]
Where payment for goods or services is made in foreign currency, value added tax thereon shall be paid in the same currency, after deducting the tax paid on purchases from the tax collected in foreign currency.
Article 53
For the purposes of applying Article 46 of the Law, when levying enforcement attachment, the enforcement attachment order shall be issued by the competent authority using Form No. (1 — Compulsory Collection), after the tax has become due and payable. The enforcement attachment (attachment report) shall be effected using Forms No. (4 — Compulsory Collection), (3/3 — Compulsory Collection), and (5 — Compulsory Collection), according to the type of attachment, in all cases following service of a demand on the taxpayer or obligor by registered post with acknowledgement of receipt using Form No. (1/2 — Compulsory Collection), unless there is a risk of the tax debt being rendered unenforceable.
Article 54
The following controls shall be observed when taking administrative attachment proceedings to collect overdue tax debt, late payment charges, additional tax, and other amounts due from the taxpayer or obligor up to the date of the attachment order:
First — With respect to attachment of moveable property:
(a) Proceed to attach the moveable property at the locations where it is found.
(b) The moveable property subject to attachment shall be valued at a fair value commensurate with its market value at the date of attachment.
(c) Attachment shall be limited to moveable property of sufficient value to satisfy the overdue tax debt, late payment charges, additional tax, and other amounts up to the date of the attachment order.
(d) Goods forming part of the taxpayer’s or obligor’s trade inventory or other items that would impede the conduct of the taxpayer’s or obligor’s business shall not be attached unless the value of furniture, fittings, and equipment that may lawfully be attached is insufficient to satisfy the overdue tax debt, late payment charges, additional tax, and other amounts up to the date of the attachment order.
Second — With respect to attachment of debts owed to the debtor by third parties:
(a) Take the necessary steps to identify the banks or dealing parties in whose hands there are amounts owed to the tax debtor in respect of the tax debt, late payment charges, additional tax, and other amounts due up to the date of the attachment order.
(b) Take the prescribed steps to require banks and dealing parties to submit a declaration of what is owed, and to compel them to do so in the event of refusal by way of an action for compulsion.
(c) Attachment shall be limited to amounts held by those banks and dealing parties that have admitted the existence of a debt owed to the debtor, to an amount sufficient to satisfy the overdue tax debt, late payment charges, additional tax, and other amounts due up to the date of the attachment order.
Article 55
When levying precautionary attachment proceedings pursuant to Article 47 of the Law, the competent tax office shall exercise due diligence in estimating the tax debt and other amounts at risk of being lost, as projected from the available documents, that are expected to be due from the taxpayer or obligor against whom attachment is sought. The value of the attached assets shall not exceed one and a half times the tax debt and other amounts.
Chapter Two: Set-Off and Discharge of Liability
Article 56
Set-off shall occur by operation of law pursuant to Article 50 of the Law where the following two conditions are met:
(1) The amounts due to the taxpayer or obligor are final and free from any dispute.
(2) The amounts due to the Authority are payable and due.
Set-off shall be applied in the following order:
(1) Set-off between amounts due to the taxpayer or obligor from the Authority against amounts payable by the taxpayer or obligor in accordance with applicable tax law.
(2) Set-off between amounts due to the taxpayer or obligor from the Authority against other amounts payable by the taxpayer or obligor in accordance with any law applied by the revenue agencies of the Ministry of Finance.
Article 57
For the purposes of applying the third paragraph of Article 50 of the Law, a taxpayer, obligor, or his legal representative may request the Authority to issue a certificate confirming that his liability in respect of tax and other amounts due is discharged, using Form No. (1 — Taxpayer Accounts). The Authority shall issue the certificate within forty days of the date of the request, using Form No. (3 — Taxpayer Accounts).
Chapter Three: Waiver of Tax
Article 58
For the purposes of the final paragraph of Article 51 of the Law, when taking enforcement proceedings against the taxpayer’s or obligor’s assets, or assets that have passed to the heirs, care shall be taken to ensure that sufficient assets remain, after enforcement, to generate income of not less than the value of the zero-rated bracket under applicable income tax law. This shall be calculated on the basis of the credit and discount rate announced by the Central Bank of Egypt at the date of enforcement.
PART SEVEN: TAX APPEAL PROCEDURES
Chapter One: Methods of Service
Article 59
The term ‘elected domicile’ for the purposes of the second paragraph of Article 54 of the Law means the place designated by the taxpayer or obligor for service of tax forms, such as the office of a lawyer or accountant.
In cases where service of notice on the taxpayer or obligor is returned endorsed to indicate that the establishment does not exist or that the address of the taxpayer or obligor cannot be identified, the competent tax official or the competent appeal committee member holding judicial police powers shall conduct the necessary enquiries. If the enquiries reveal the existence of the establishment or the address of the taxpayer or obligor, re-service shall be made by delivering the notice to him. If the enquiries fail to identify the establishment or the address, service shall be effected on the taxpayer or obligor in the presence of the Public Prosecution.
The head of the competent appeal committee may request that the competent tax office conduct the aforementioned enquiries through one of its tax officials holding judicial police powers. In such case, the enquiries shall be conducted promptly and the committee head shall be provided with a copy of the enquiry report indicating its findings.
Chapter Two: Time Limit for Filing an Appeal
Article 60
For the purposes of applying Article 55 of the Law, a taxpayer or obligor may appeal against the tax assessment forms within thirty days of the date on which he is notified of those forms.
Where acknowledgement of receipt is received confirming that the taxpayer or obligor has received the notification of the tax assessment forms without an appeal having been filed within the aforementioned period, the tax assessment by the Authority shall become final.
The date of the attachment order served on the taxpayer or obligor shall be the date on which he becomes aware of the attachment.
PART EIGHT: TAX APPEAL STAGES
Chapter One: Administrative Stages of Appeal Review
Article 61
An appeal filed by a taxpayer or obligor against a tax assessment shall be submitted by a petition, in an original and three copies, to the competent tax office. One copy shall be delivered to the taxpayer or obligor endorsed by the tax office with the date of receipt, or through the Authority’s electronic system pursuant to the relevant Ministerial Decree. The tax office shall record the appeal details and a summary of the points of contention in a dedicated register, and shall refer the matter to the competent internal committee.
The internal committee shall notify the taxpayer or obligor of the date of the session fixed to hear the appeal by registered post with acknowledgement of receipt using Form No. (2 — Appeal), by any electronic means having legal evidentiary weight, or by delivery of the notification form at the place of business or the tax office under a report signed by the taxpayer, obligor, or his representative.
Where the internal committee refers the appeal to the appeal committee, it shall notify the taxpayer or obligor of the referral by registered post with acknowledgement of receipt using Form No. (3/4 — Appeal), by any electronic means having legal evidentiary weight, or by delivery of the form at the place of business or the tax office under a report signed by the taxpayer, obligor, or his representative.
Article 62
Notification of the outcome of the examination of the application or the objection to salary and wage tax deductions referred to in Article 57 of the Law shall be given using Form No. (38 — Payroll).
Article 63
Re-notification of the taxpayer or obligor or his representative to appear before the internal committee for the hearing of the objection to the tax assessment filed by him pursuant to Article 59 of the Law shall be given using Form No. (2/3 — Appeal).
Article 64
For the purposes of applying Article 62 of the Law, the appeal committee shall have jurisdiction to decide on points of disagreement relating to the Authority’s tax assessment and the taxpayer’s or obligor’s claims in respect thereof. Notification by the appeal committee to both the appellant and the competent tax office of the date of the session fixed for the hearing shall be given using Form No. (5 — Appeal). The taxpayer or obligor may confine himself to sending memoranda and documents to the appeal committee through the competent tax office. The committee may, in the event of the taxpayer’s or obligor’s non-attendance or failure to submit any memoranda or documents, rule on the appeal on the basis of the papers and documents before it.
Article 65
For the purposes of applying Article 64 of the Law, notification to both the Authority and the taxpayer or obligor of the appeal committee’s decision shall be given by registered post with acknowledgement of receipt or by any electronic means having legal evidentiary weight, using Form No. (1/8 — Appeal). The competent tax office shall, upon being notified of the appeal committee’s decision, study the decision to consider whether it should be challenged before the competent court.
The competent tax office shall calculate the aggregate income tax due from the taxpayer if the taxpayer has other income elements that were not brought before the appeal committee, in addition to the tax determined by the committee on the elements that were brought before it.
Chapter Two: Settlement Petition in Appeal
Article 66
A petition to settle the points of contention in the appeal pursuant to Article 66 of the Law shall be submitted by the taxpayer or obligor or his representative on Form No. (6 — Appeal), and shall be accompanied by a statement from the appeal committee confirming that the appeal has not been reserved for decision.
The competent tax office shall immediately notify the appeal committee of this petition, using Form No. (1/6 — Appeal), for the purpose of staying the hearing of the appeal before it.
Should the parties reach a settlement, the appeal committee shall be notified thereof using Form No. (3/6 — Appeal), and the committee shall record the settlement in a report signed by both parties. That report shall constitute an enforceable instrument.
Where either or both parties are unable to appear before the appeal committee to sign the aforementioned report, they may confine themselves to sending the original settlement accompanied by Form No. (2/6 — Appeal) bearing their signatures. The appeal committee shall record this in its decision.
Notification of failure to reach agreement, or the lapse of the time limits prescribed in Article 66 of the Law without the dispute being settled, shall result in the hearing of the appeal being resumed in the state in which it stood before the stay.
Article 67
The committee for review of final assessments shall, within fifteen days of receiving the interested party’s request, request the tax file of the taxpayer or obligor from the competent tax office. The tax office shall submit the file to the committee within a maximum of fifteen days of the date of receipt of the committee’s request. Upon receipt of the file, the committee shall study the taxpayer’s petition and the submitted documents in light of the documents in the tax file, and shall issue its decision within a maximum of sixty days of the date of receipt of the file. The decision shall not take effect until approved by the Authority Head.
The interested party shall be notified of the decision by registered post with acknowledgement of receipt or by any electronic means having legal evidentiary weight.
— END OF DECREE —
