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Egypt: Tax developments in response to COVID-19

General Information

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.

Date accurate as of: 18 November 2020

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.