On 3 March 2020, Egypt has issued Law 16 on tax disputes resolution in the official gazette. The Law has amended the previous Law 79 of 2016 and extended the provision of tax dispute settlement until 30 June 2020.
The Law added a new paragraph to article no.110 of the Income Tax Law. The provisions of the paragraph are:
- If the tax authority has modified the tax return of the taxpayer after the first 3 years have passed from the date of the expiry of the period specified for its presentation, the late payment interest may not be charged from that date until the date of the tax assessment notification. Late penalties shall be re-calculated from the date of the taxpayer’s notification until the date the dispute is resolved, and
- The taxpayer is exempted from paying 30% of the delay in exchange for the unpaid tax that is due according to the agreement that is conducted with the Authority before the decision of the Appeal Committee; provided that the taxpayer pays the tax owed it.
