On 16 August 2020, the Government of Egypt has issued Law No. 173 of 2020 by waiving the consideration for the delay, additional tax, interest, and similar non-criminal financial sanctions, and to renew the application of Law No. 79 of 2016 regarding the termination of tax disputes, after the approval of President Abdel Fattah El-Sisi. The Law is effective from 17 August 2020.
In relation to the tax or the fee due or due prior to the effective date of this law, provided that the taxpayer or taxpayer pays the original tax debt or fee in full, starting from the effective date of this law, according to the following: –
- 90% of the delay fee or additional tax will be waived if the payment is made within a date not exceeding the first 60 days from 17 August 2020;
- 70% of the delay fee or additional tax will be waived if payment is made within the 60 days following the period stipulated in Clause 1; and
- 50% of the delay fee or additional tax will be waived if payment is made within the 60 days following the period stipulated in Clause 2.
The law will come into effect for the Income Tax, Stamp Duty Tax, Value Added Tax (VAT)/Sales Tax, Customs, and Real Estate Tax.
Furthermore, the provisions and procedures stipulated in Law No. 79 of 2016 regarding the termination of tax disputes, amended by Laws No. 14 of 2018 and 174 of 2018 and renewed in force under Law No. 16 of 2020, are renewed until 31 December 2020.
