The Ministry of Finance continues its efforts to integrate the informal economic sector, collect taxes due

The Egyptian government has stepped up efforts to integrate the informal economic sector into the formal economy, in a way that helps to increase tax revenues, achieving tax justice in the local market, according to Finance Minister Mohamed Maait.

Maait stressed the importance of tax digitization projects to increase the efficiency of tax collection, reduce tax evasion and monitor the volume of business transactions between businesses and between businesses and consumers, through the projects. electronic invoice ”and“ electronic receipt ”, then strengthen the governance of the general revenue system of the State.

He added that the electronic platform of unified tax procedures contributes to strengthening the governance of the tax system, through which the tax administration is electronically linked to 74 government agencies. This can strengthen efforts to fight tax evasion and stimulate investment. He stressed that the government continues to limit online outlets to monitor tax evaders and take the necessary legal action against them.

He explained that in September 2021, the unified electronic tax platform will be launched in 10 districts of Cairo, so that tax services can be made available to taxpayers electronically using the unified tax registration number.

Reda Abdelkader, head of the Egyptian tax administration, said all business activity is subject to taxes. This also includes online activities. He pointed out that companies that sell goods or services online are required to register with the tax authorities to avoid the crime of tax evasion. In addition, companies that enter e-commerce and have reached the registration limit of EGP 500,000 are required to register for value added tax. This also includes suppliers of professional services and other services subject to table tax, regardless of the volume of their sales.

He pointed out that not submitting monthly returns is considered tax evasion, which is a crime. The penalty for this crime is imprisonment for three to five years. He noted that with regard to income tax, e-merchants can choose between applying Law 91 of 2005, submitting an annual report on net profit, accompanied by the payment of taxes, or enjoying the benefits of Law 152 of 2020 if they are owners. medium, small and micro enterprises. They would be required to pay the final tax on annual transactions based on the volume of business.