Egypt Sales Tax changes

Egypt has issued a number of improvements to its Sales Tax regime. This is ahead of plans to introduce a VAT implementation Bill in the next month.

The Sales Tax changes include:

• New allowances for the deduction of input Sales Tax incurred along the production chain
• Launch of a ‘Sales Tax Lottery’, whereby a weekly cash-prize will be given based on full compliant invoices prepared by tax payers
• Withdrawal of a number of essential products from the Sales Tax levy
• The introduction of a withholding requirement on certain Sales Tax payments to reduce tax fraud and under disclosure
• Increase in the tax registration threshold to Egyptian Pound 500,000 per annum
• Simplification of the number of Sales Tax rates

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