Egypt: Tax developments in response to COVID-19

This page offers an overview of tax developments being reported globally by KPMG member firms in response to the Novel Coronavirus (COVID-19).

The content will be updated regularly. However, due to the fast-moving pace of change, it may not always reflect the most current developments in a given jurisdiction. Please refer to the date of accuracy and refer to the relevant links, under additional information, for original source information.

Several tax measures have been decided by the Egyptian government in order to mitigate the harmful effects of COVID-19 outbreak:

• Capital gains tax (“CGT”) on the capital gains realized by Egyptian and tax-residents from disposing of securities listed on the Egyptian Stock Exchange (“EGX”), will be put on hold until the 31st of December 2021. 
• Waiving the subscription fees to ETA’s web portal for individuals, for this year only, to encourage them to file their tax returns online.
• However, there has been no announcement of extended deadlines for filing corporate income tax returns. Corporate taxpayers, therefore, must file an extension request.
• The tax authority is also allowing taxpayers the option of remitting tax payments either electronically or through bank cheques.
• The taxpayers can pay through  the bank transfer. Otherwise through cash with limit EGP 500 and if more than 500 the taxpayers will pay administrative expenses 5% from the tax payment no later than EGP 7000.
• Suspension of the administrative attachment on all taxpayers who have payable taxes against payment of 10% out of their due taxes and send their tax files back to be settled via settlement of tax disputes committees. 
• Stamp tax imposed on the total proceeds realized by tax residents of Egypt from selling or buying listed securities on the EGX, has been reduced to be 0.05%. instead of 0.15% (law not issued).
• Stamp tax imposed on the total proceeds realized by non-tax residents from selling or buying listed securities on the EGX, has been reduced to be 0.125% instead of 0.15% (law not issued).

Suspension of Tax Audits

The suspension of administrative attachment has been announced for all taxpayers who have at least 10% payable taxes outstanding.

The COVID-19 outbreak is having major effects on the economy in Ethiopia. To mitigate the effects of the COVID-19 outbreak to the economy, the Government of Ethiopia has launched various measures including the measures below as regards fiscal policy:

• Accelerated processing of VAT refunds to help in the cash flow of the private sector to enable them better manage the effects of COVID-19 on their businesses
• Tax exemption on importation of products related to curbing the coronavirus outbreak 

Additional information regarding employment-related measures, economic stimulus measures and other meausers.