ATLA

Tax shall be charged on goods and services including goods and services listed in the table attached hereto, whether local or imported, in all stages of transactions, unless otherwise specified by a special provision.
An amount of 40 piasters of tax collection imposed on serial (First:1/B/3) of Table (1) attached herein shall be allocated to General Authority for Health Insurance and minister of Finance shall define in agreement with Minister of Health such rules governing payment of such amount to General Authority of Health Insurance by virtue of a decree issued by Minister of Finance.(5)(*)

(5) Paragraph (2) of Article (2) was added by Law No. (3) of 2017 - Official Gazette - Edition (2 bis B) issued on January 15, 2017.
(*) Law No. (2) of 2018 was promulgated to issue "Universal Health Insurance System" and Article 40 thereof, item 9 reads as follows:-
Ninth: Other sources:
The following amounts shall be collected according to this law to finance such system:
- 75 piasters of value of pack of cigarettes in local market whether local or foreign production providing increase of such value by 25 piasters every three years to reach 150 piasters.
- (10%) of value of every sold unit of tobacco derivatives other than cigarettes.
- one pound to be collected upon passage of every vehicle on such high ways that are subject to such fare collection system.
- 20 pounds for every year upon issuance or renewal of driving licenses.
- 50 pounds for every year upon issuance or renewal of car licenses of litre capacity of less than 1.6 litre.
- 150 piasters for every year upon issuance or renewal of car licenses of litre capacity of 1.6 litre or less than 2 litre.
- 300 pounds for every year upon issuance or renewal of car by licenses of litre capacity of 2litres or more.
- An amount ranging from 1000 to 1500 pounds upon contracting with such system for medical clinics and centers, pharmacies and pharmaceutical companies according to rules set by The Executive Regulations of this law.
- 1000 pounds per bed upon issuance of licenses of hospitals and medical centers.
- Solidarity contribution at 0.0025% (2.5 x1000) of total annual revenues of sole-proprietorship and companies regardless of nature or legal status thereof, as well as public economic entities. Such contributions shall not be deemed part of deductible costs in application of provisions of Income Tax Law and shall be collected according to controls and procedures set forth by The Executive Regulations thereof.

Standard VAT rate on goods and services shall be (13%) for fiscal year 2016/2017, and shall be (14%) as of the beginning of fiscal year 2017/2018, provided that a percentage of (1%) of tax shall be allocated to expenditure on social justice programs. As an exception from the above, tax rate on machines and equipment used in manufacturing a commodity or provision of a service shall be 5% except for buses and passenger cars.
Such goods and services exported under the terms and conditions stipulated by the Executive Regulations shall be zero-rated.

Taxable persons shall collect and pay VAT to ETA according to deadlines specified herein.

Upon selling a commodity and/or providing a service by taxable persons in all stages of transactions, tax shall be charged as per the provisions stipulated herein regardless of the method of selling of goods or rendering of services as well as dealing in such including online means.
Imported goods shall be taxed, regardless of the purpose of import including personal consumption or special use, in the customs release stage upon the ascertainment of customs duty point. Tax shall also be charged upon Customs release throughout all transaction stages of the goods in Egypt. Rules related to special customs regimes shall be applied on imported goods unless otherwise stipulated by virtue of a special provision herein.
Imported services shall be taxed upon rendering such services to service recipients in Egypt regardless of service rendering method. Tax shall not be due on transient goods, provided that such goods are transported under control of Customs Authority in accordance with the rules stipulated in the customs law.
Using, benefiting from, disposing of a commodity or a service by taxable persons for personal consumption or special use in any legal manner shall be deemed as a sale.

Goods and services exported abroad by free zones, cities and markets shall be zero-rated.
Goods and services supplied to such projects for carrying out related authorized business operations within the free zones, cities and markets except for passenger cars shall be zero-rated.

Without prejudice to the provisions of the second paragraph of Article (6) herein, VAT shall be chargeable on taxable goods or services in accordance with the provisions hereto for local consumption inside the free zones, cities and markets.
Importation for the sake of trading within free zone including a whole city shall be deemed as local consumption.
Importation made for commercial purposes within free zones that represent an entire city shall be deemed local consumption.
Tax is also due on imported taxable commodities or services in accordance with the provisions thereof from free zones, cities and markets to the local market inside the country.
Services and commodities manufactured in projects of free zones and cities shall be treated as imported from abroad when withdrawn for local consumption or use.
The Executive Regulations shall specify the limitations and rules governing the provisions of this article and Article (6) herein.

In case of suspension and/or liquidation of a business related to a taxable commodity or service, VAT shall be chargeable on commodities in the possession of registrants at the time of disposal unless the successor of the registrant is or shall be registered in accordance with the present law.

Without prejudice to the penalties stipulated herein, smuggled goods sales and sales made contrary to rules stipulated by laws shall be subject to tax rates effective on the date of crime or offense. In case the date is impossible to define, such sales shall be subject to the effective tax rates at the time of seizure or detection of the offense.

1. The value to be declared in the tax return that shall be taken as a basis of VAT assessment for taxable goods sold and services provided, even imported, shall be the amount actually paid or payable in any form of payment in accordance with the natural course of events.
2. In accordance with the provisions of the first paragraph of this article, the value to be declared in the tax return shall include the following:
a) Amounts collected from the purchaser or the service recipient under any name as long as such amounts are related to commodity sale or service provision; and
b) All incidental expenses, such as the costs of commission, packaging, sorting, transportation, insurance, charged by the seller on the purchaser and/ or importer.
3. Upon sale of a local or imported commodity or service between related persons, the value of sale shall not be less than the price applied between non-related persons as per market forces and transaction conditions.
4. In case of sales by bartering, the commodity value taken as a basis for VAT assessment shall be the sale price according to market forces and transaction conditions.
5. Value to be declared in the tax return for goods and services used for special usage shall be determined based on the total cost. Value of goods and services used for personal consumption shall be determined according to market forces and transaction conditions.
6. The value for installment sales taken as a basis of VAT assessment shall include the installment sale interest that exceeds the credit and discount rate declared by the Central Bank of Egypt (CBE) on the selling date. The Executive Regulations shall specify the rules and procedures of installment sale.
7. According to item (8) of this Article, value of imported goods shall be estimated upon the Customs release based on the value taken as a basis for Customs duty assessment including services relevant to the imported commodity in addition to Customs duty and any other taxes or duties levied, provided that the value to be declared upon sale in the local market shall not be less than value deemed a basis for tax assessment upon Customs release, unless there are commercial reasons justifying such reduced value. The Executive Regulations shall specify the reasons deemed commercial.
8. Tax base for goods and services imported from free zones and cities shall be the total value of the goods inclusive of the value of foreign and local components along with Customs duties and any other taxes or duties collected thereon.
9. The value taken as a basis for Tax assessment on sale of platinum, golden, silver and precious stoned jewelry shall be the value of manufacturing. The tax base for imported jewelry upon customs release shall be the value of manufacturing specified by the Customs Authority in addition to customs duty and other taxes and chargeable duties. Executive Regulations shall specify the stones deemed precious as well as the rules for calculating manufacturing value.
10. The value taken as a basis for tax assessment on sales of goods and services listed in Table attached hereto shall be as follows:
First: Sales of local goods and services:
The tax base shall be the value actually paid or payable in any form of payment in accordance with the natural course of events, in addition to the Table Tax.
Second: Imported goods and services:
a) Imported Goods: the tax base shall be the value taken as a basis for Customs duties assessment in addition to the Customs duties and any other levied taxes and duties as well as the Table Tax.
b) Imported Services: the tax base shall be the value actually paid or payable in any form of payment in accordance with the natural course of events in addition to Table Tax.

11. The value taken as a basis for tax assessment on new goods purchased by the registrant and re- sold after local use for at least two (2) years shall be 30% of the sale value without applying the provisions of discount stipulated in Article (22) herein upon sale.
12. The Minister of Finance may, in agreement with the Minister concerned, issue price lists of some goods and services, or establish accounting standards for the assessment of Tax.

The value of VAT shall be added to the price of goods or services including officially price- imposed and profit-fixed goods and services.
Prices of contracts concluded by two or more taxable parties, or among parties one of whom is a taxable person and which are prevailing at the time of charging VAT and Table Tax, or when amending tax brackets with the same amount or amending the tax burden shall be amended.
The Executive Regulations shall specify the rules for applying the second paragraph of this Article.

Repealed(6)

(6) Article (12) was repealed by Law No. (206) of 2020 - Official Gazette - Edition (42 bis C) issued on October 19, 2020; and it used to read as follows:
ARTICLE (12)
Registrants shall issue a tax invoice upon sale of goods or services subject to VAT specifying the buyer's name and seller's registration number, if registered. The Executive Regulations shall specify the rules and procedures that ensure regular issuance, control and auditing of invoices.
The Minister of Finance may introduce a simplified system for VAT and Table Tax assessment for enterprises unable to issue tax invoices on each and every sale.
The Minister of Finance or the person so authorized may, in some cases, oblige the registrant not to issue any invoices of goods or services taxable to VAT or Table Tax, unless the invoices are approved by ETA.

Repealed(7)

(7) Article (13) was repealed Law No. (206) of 2020 - Official Gazette - Edition (42 bis C) issued on October 19, 2020; and it used to read as follows:
ARTICLE (13)
Registrants shall keep regular accounting books and records to manually or electronically record all transactions simultaneously, and shall keep such books, records and documents as well as copies of invoices for five years as of the end of the relevant fiscal year in which the entries were made in these books and records.
The Executive Regulations shall specify the limitations, rules and procedures as well as records and books the registrant shall manually and electronically keep, in addition to data to be recorded therein and documents to be kept.

*(8)
ETA has the right to assess tax for such tax period in which no tax return was not filed by registrant stating basis on which such assessment was built.

(8) Article (14) was repealed by Law No. (206) of 2020 - Official Gazette - Edition (42 bis C) issued on October 19, 2020; and then was added by law No. 3 of 2022 - Official Gazette - Edition (3 bis E) issued on January 26, 2022 .

*(9)
In case ETA amends such tax return after the first three years as of the elapse of the specified filing period, ETA may not charge the additional tax for the period following the elapsed three (3) years and until the registrant is notified of such amendment.

(9) Article (15, except paragraph 2) was repealed by Law No. (206) of 2020 - Official Gazette - Edition (42 bis C) issued on October 19, 2020; and it used to read as follows:
(Article 15 except paragraph 2)
In case the amount of tax due to be declared is different from the declared tax amount in the tax return for any tax period, ETA shall amend such tax return within five (5) years as of the elapse of the period specified for filing the tax return on such tax period according to Article (14) herein.
ETA shall notify the registrant of such amendment as well as the bases upon which the amendment was made using the form prepared for this purpose via certified mail or through any electronic means as per the Law of Electronic Signature or through any other written means by virtue of which ascertained knowledge is established.
The person concerned may, in all cases, appeal the assessment of ETA in accordance with the procedures stipulated herein.

*(10)
Every natural or judicial person who sells a taxable commodity or provides a taxable service, and whose total sales of taxable and exempt goods and services during the preceding 12 months as of date of enforcement of this law reach or exceed 500,000 Egyptian Pounds, shall apply to ETA to register their names and data on the form specified for such purpose within thirty (30) days as of the date his total sales reached registration threshold. Any person whose sales reach registration threshold after the enforcement date of the law in any fiscal year or part thereof shall apply for registration as mentioned herein. Natural persons who do not sell goods or provide services are not obliged to register in case their sales reached the abovementioned threshold.
Importer of a taxable commodity or service for the purpose of trading, exporters or distribution agents shall apply to ETA for registration regardless of their transaction volume..
The abovementioned registration threshold may be amended by virtue of a Ministerial decree.

(10) 3rd and 4th paragraphs od Article (16) were repealed by Law No. (206) of 2020 - Official Gazette - Edition (42 bis C) issued on October 19, 2020; and it used to read as follows:
(Article 16, 3rd and 4th paragraphs)
ETA shall notify the taxable person within the fourteen (14) days following the date of the registration request. Such person shall be subject to the provisions stipulated herein as of registration date.
In case the taxable person fails to apply for registration, such person shall be deemed registered by the force of law and shall be subject to the provisions of said law as of date the amount of their sales and services reach the registration threshold without prejudice to provisions of Article (68) herein.

*(11)
Every non-resident person who is not registered in ETA and sells taxable goods or provides taxable services to a non-registered person inside the country and who does not practice business through a permanent establishment in Egypt, shall apply for registration according to such simplified supplier registration system set forth in the Executive Regulations.
Legal persons who are not selling taxable goods or providing taxable services but are liable to assess tax on imported services according to paragraph (2) of article (23) hereof ,shall file an application to ETA for registration for the purposes of reverse charge system.
Provisions of this article hall apply to services for six months as of date of enforcement of simplified supplier registration system stipulated for in first paragraph of this article and shall apply to goods for a period of time not exceeding 2 years as of date of enforcement of such system.

(11) Article (17) was replaced by Law No. (3) of 2020 - Official Gazette - Edition (3 bis E) issued on January 26, 2022 .

The natural or juridical person who does not reach the registration threshold may apply to ETA to register their names and data in accordance with the terms, conditions and procedures specified by the Executive Regulations. Upon registration, such persons shall be deemed registrants governed by this law.

Repealed(12)

(12) Article (19) was repealed by Law No. (206) of 2020 - Official Gazette - Edition (42 bis C) issued on October 19, 2020; and it used to read as follows:
Article (19)
ETA shall keep a log in which the data of registration applications are recorded after reviewing and verifying such information and giving every registrant a certificate of registration.
The executive regulation shall specify the terms and conditions as well as rules and procedures on the registration certificates and the data included therein.

Repealed(13)

(13) Article (20) was repealed by Law No. (206) of 2020 - Official Gazette - Edition (42 bis C) issued on October 19, 2020; and it used to read as follows:
Article (20)
Every registrant shall in writing notify ETA of any changes made to the data previously presented in the registration application within twenty- one (21) days of such changes.

The Commissioner of ETA may deregister any registrant in some cases in accordance with terms and conditions stipulated in the Executive Regulations.

In accordance with limits, terms and conditions specified by the Executive Regulations, the registrant may, upon calculating the tax, deduct the tax previously paid or charged on their returned sales and inputs as well as goods sold by same registrant out of the tax due on their sales of such goods, at all phases of distribution.
The provision of the first paragraph of this article shall apply to the following:
1. Sales of goods and services provided to organizations stipulated in Clause (VIII) and Article (23) of this law.
2. Sales of goods and services funded by grants exempted by law.
3. The deduction shall be within the limit of the due tax. The non-deductible amount shall be carried over to the consequent tax period until the full deduction is made.
The above mentioned deduction referred to in the first paragraph of this article does not apply to the following:
1. Table Tax on goods and services, whether taxable as they are or as inputs of taxable goods and services, unless otherwise provided by a special provision herein.
2. Input tax included in the cost.
3. Exempted goods and services.
4. Cases registered under simplified supplier registration system set forth in paragraph (1) of Article 17 hereof. (14)

(14) 4th paragraph of Article (17) was replaced by Law No. (3) of 2020 - Official Gazette - Edition (3 bis E) issued on January 26, 2022.

The following shall be exempted, observing reciprocity principle according to the data of the ministry of foreign affairs:
1. Items bought or imported for personal use for members of foreign non-honorary diplomatic and consular corps who are appointed and incorporated in the lists issued by Ministry of Foreign Affairs, as well as items bought or imported for personal use for spouses and minor children of such personnel.
2. Items bought or imported by non-honorary embassies, commissions, and consulates for official use except for food, spiritual drinks and tobacco.
Number of vehicles exempted according to items (1) and (2) shall be defined by one (1) car for personal uses, and five (5) vehicles for embassy or commission official use, and two (2) vehicles for consulates use. Moreover, Minister of Finance in agreement with the Minister of Foreign affairs may increase such numbers.
3. Items imported for personal use, provided such are inspected, including personal effects, furniture, household, appliances and one (1) used vehicle for every foreign employee working for diplomatic and consular missions who do not enjoy exemptions stipulated in item (1) above, provided that such items shall be imported within six (6) months as of the arrival of the said person who shall benefit from this exemption. Besides, the Minister of Finance in agreement with the Minister of Foreign affairs may extend this term of time.
The aforementioned exemptions shall be granted ,after approval of exemption request by head of the diplomatic and consular missions, as the case may be, and pursuant to the ratification of the Ministry of Foreign Affairs.

Exempt items as per the provisions of Article (23) herein, are prohibited to be used for purposes other than the purposes specified for exemptions within the five (5) years following the exemption before notifying ETA and paying due tax based on the condition and value of such items as well as the tax rate applicable on payment date, unless otherwise stipulated in respect of reciprocal principle.
The Executive Regulations shall define rules and procedures governing same.

Items imported for personal use of some dignitaries may be exempted by virtue of a decree issued by the Minister of Finance and in agreement with the Minister of Foreign Affairs for the sake of international courtesy.

The following items shall be exempted from tax according to the limitations, terms and conditions stipulated in the Executive Regulations:
1. Samples used for analysis purposes by government laboratories.
2. Personal effects and items imported degraded of any commercial use such as decorations, medals as well as sports and academic prizes.
3. Supplies imported from abroad, with no compensation for damage or loss in consignments previously supplied or rejected and for which full tax was collected provided that Customs Authority verifies such instances.
4. Personal luggage of passengers coming from abroad.
5. Items on which tax was previously paid and exported abroad then re-imported as they are, provided that the Customs Authority verifies this.

*(15)
Some goods may be exempted from tax, by virtue of a decree issued by the Minister of Finance in agreement with the competent Minister in the following two cases:
1. Grants, donations, and presents given to state administrative bodies or local administration units.
2. Imports for academic, educational and cultural purposes by academic, educational and scientific research institutes.

(15) Article (27) was replaced by Law No. (3) of 2020 - Official Gazette - Edition (3 bis E) issued on January 26, 2022.

Each and every goods, equipment ,machinery and services relevant to this law and necessary for the purposes of armament for national defense and security as well as material and supplies required for production and parts used in manufacturing thereof.

*(16)
Payment of tax due on machinery and equipment imported from abroad or bought from local markets for factories and production units for use in manufacturing, shall be suspended for one year as of date of release or purchasing from local markets as the case may be. Such period of time may be extended for one more period or periods of time no later than a maximum of one year based on justifiable reasons accepted by ETA. If proved to ETA that such machinery and equipment are used in manufacturing during such period of time , same shall be exempted from such tax due referred to. In such case , disposal of such machinery and equipment shall be banned if used for purposes other than those for which they were exempted for such five years following exemption before notifying ETA and payment of tax due according to status , value, and thereof as well as tax rate applicable on date of payment.
Upon elapse of such period of time referred to in paragraph (1) of this article without use of such machinery and equipment in industrial production, tax shall be payable as of date of customs release of such machinery and equipment or purchase of such from local market as the case may be until date of payment.
Executive Regulations shall define rules and procedures regulating this.

(16) Article (28 bis) was added by Law No. (3) of 2020 - Official Gazette - Edition (3 bis E) issued on January 26, 2022.

Without prejudice to the provision of Clause (VIII), other tax exemptions stipulated in other laws or decrees shall not apply to this tax unless this exemption is explicitly stipulated.

*(17)
VAT shall be refunded, according to the conditions and procedures and within the limits specified by the Executive Regulations, within forty-five (45) days as of the date of submitting the application supported by documents in the following cases:
1. Tax previously paid or charged on exported goods or services whether in same condition or included in other goods or services but not exceeding the credit balance, provided that the value of exports shall be supplied to a bank subject to the supervision of the Central Bank of Egypt (CBE) and according to rules provided by the Central Bank of Egypt (CBE) or according to any of the payment methods or other settlements stipulated by the Executive Regulations, provided that the value of exports shall not be less than the value of their inputs.
2. Tax collected by mistake.
3. Credit balance which lasted for more than six (6) successive tax periods.
4. Tax previously paid on machines and equipment used in the production of a taxable commodity or in providing a taxable service upon filing of the first tax return except for buses or passenger cars, unless the usage of such is the licensed activity of the enterprise.
5. Tax paid by non- resident registrant according to simplified supplier registration system to nationally do business.
In all cases, a report signed by an auditor registered in the Accountants and Auditors Table shall be submitted with other documents supporting the right of the taxable person to tax deduction or refund unless tax was proved to be electronically paid to ETA.

(17) Article (30) was replaced by Law No. (3) of 2020 - Official Gazette - Edition (3 bis E) issued on January 26, 2022.

*(18)
Foreign visitors upon departure from Egypt have the right ,no later than three months ,to refund tax previously paid to registered seller as to taxable purchases provided that amount of each and every invoice is not less than EGP 1500 and that purchases are in his possession or in any other means upon departure from Egypt. Executive Regulations shall set rules governing application of such article.

(18) Article (30 bis) was added by Law No. (3) of 2020 - Official Gazette - Edition (3 bis E) issued on January 26, 2022.

*(19)
Ministries, government entities and agencies, municipal units and public agencies and other public legal persons shall directly remit table tax due to ETA within ten days as of date of tax being payable. Such entities and agencies shall directly remit 20% of VAT due to ETA within same period of time previously referred to as part of total amount of tax withheld thereby. ETA may not request taxable persons to collect amounts previously been remitted and all this shall be set forth in Executive Regulations.
Tax on imported goods shall be paid upon release by Customs Authority according to procedures set for payment of customs duties. Such goods may not be finally released before full payment of tax due unless it was proved that non- resident registrant has collected tax on imported goods being released by Customs.
Without prejudice to provisions of Article (28bis ) herein, Commissioner or whoever duly delegated by him may, for three months, temporarily release consignments imported for production process or doing business based on guarantees that Customs Authority finds suitable until concerned person submits required documents to Authority to verify qualification to exemption within such stated period of time or payment of tax due and additional tax assessed as of date of consignment release.

(19) Article (31) was replaced by Law No. (3) of 2020 - Official Gazette - Edition (3 bis E) issued on January 26, 2022.

*(20)
In case a non-resident who is not registered in ETA sells a service in Egypt to a registered person, governmental organization, public or economic agency or any other agency where such services are not essential for doing their business operations, the beneficiary of such service shall calculate and pay the due tax to ETA within thirty (30) days as of selling date, unless such non-resident is registered in the streamlined supplier registration system.
Legal persons subject to reverse charge system referred to in second item of article ( 17) herein and import services shall assess tax due on such services and pay such tax to ETA within 30 days as of date of supplying such service unless such non-resident non registrant person is registered in the streamlined supplier registration system.

(20) Article (32) was replaced by Law No. (3) of 2020 - Official Gazette - Edition (3 bis E) issued on January 26, 2022.

Issuance of invoice by service provider is the tax incidence according to the provisions stipulated herein concerning services of a continuous nature. The Executive Regulations shall define such services.

Repealed(21)

(21) Article (34) was repealed by Law No. (206) of 2020 - Official Gazette - Edition (42 bis C) issued on October 19, 2020; and it used to read as follows:
(Article 34)
Collecting tax and any other due amounts according to the provisions specified herein shall follow the provisions of law No. (308) of the year 1955 on administrative seizure as well as the provisions and procedures stipulated herein.
The provisions of the first paragraph of this article are applicable to companies and enterprises regardless of legal system thereof.

Repealed(22)

(22) Article (35) was repealed by Law No. (206) of 2020 - Official Gazette - Edition (42 bis C) issued on October 19, 2020; and it used to read as follows:
(Article 35)
Offset shall be made by force of law of the entitlements of registrant and due liabilities by any tax law applied by ETA or any other revenue authority affiliated to the Ministry of Finance.

Without prejudice to any special provision prescribed herein, it is prohibited to dispose of any goods exempted from VAT or Table Tax, or to use such goods in purpose other than the purposes for which such goods are exempted within five (5) years following the exemption except after notifying ETA and paying the due tax according to the value of goods and applicable tax rate at the date of disposal.
Prohibition stipulated in the first paragraph of this article shall apply to machines and equipment for which tax is previously refunded in accordance with item (4) of article (30) herein.
Due tax must not, in all cases, exceed the amount of the tax previously exempted or refunded.

ETA may, when necessary, take samples of some goods to be analyzed and may consult any experts deemed necessary.
The person concerned may ask for repeating the analysis on his own expense. The Minister of Finance shall issue decree determining the methods and procedures of taking such samples.

Executive Regulations shall determine the amounts charged by ETA as prices of printed materials, banderole stamps, special marks as well as stamping, analysis expenses and other services provided by ETA officers as well as labor fees for working overtime at times other than the official working hours for the sake of persons concerned.
Such amounts are not included under any exemption or refund of VAT or Table Tax stipulated herein.

Without prejudice to the provisions of the Customs Law, ETA may dispose of the seizures and smuggling tools as well as means of transportation confiscated in accordance with the rules specified by the Executive Regulations.
ETA may, by a judicial order and before issuance of a ruling, dispose of the seizures subject to damage, decrease or loss and has, after consulting the competent technical authorities, the right to destroy prohibited goods or harmful goods that threaten public health or goods that may jeopardize the security and safety of citizens.

Repealed(23)

(23) Article (48) was repealed by Law No. (206) of 2020 - Official Gazette - Edition (42 bis C) issued on October 19, 2020; and it used to read as follows:
(Article 48)
ETA may, in all cases, assess VAT or Table Tax and/or amend the tax return filed by registrants only based on in-hand available data or documents within five (5) years as of the elapse of the period legally specified for filing the return on such tax period. Such period shall be six (6) years in case the registrant commits tax evasion.
The period shall be interrupted by any form of prescription intervals stipulated in the Civil Law, or through notifying the registrant of the tax assessment and payment, or by referral to appeal committees.

Taxable imported goods unreleased from Customs shall be subject to the provisions of violations and evasions set forth in Customs Law.

*(24)
Taxable person shall pay an amount equivalent to (1%) of amount of tax and table tax due not less than one thousand pounds and does exceed ten thousand pounds in addition to tax,table tax and additional tax due in case of violation of provisions ,procedures,and systems set forth herein and without considering such violation as any such act of evasion stipulated for herein.
The following cases shall be deemed violations hereof:
1- A deficit or surplus in goods deposited in free zones and markets in violation of provisions of Customs Law.
2- Failing,on date set to notify ETA of such changes that may be introduced to data listed in the registration application.
3- Violation of provisions ,procedures or systems set forth herein.
Amount of fine shall be doubled in case committing such act within three years.

(24) Article (50) was repealed Law No. (206) of 2020 - Official Gazette - Edition (42 bis C) issued on October 19, 2020 ; and then added by Law No. (3) of 2022 - official Gazette - Edition (3 bis E) issued on January 15, 2022.

Repealed(25)

(25) Article (51) was repealed by Law No. (206) of 2020 - Official Gazette - Edition (42 bis C) issued on October 19, 2020; and it used to read as follows:
(Article 51)
VAT, Table Tax, additional tax and any other amounts due to ETA, by virtue of the present law, has the priority over all other debts or money, except for the judicial expenses, of tax debtors or taxable persons who are assigned by force of law to collect and remit tax to ETA.

Executive Regulations shall define the required control systems over the registrant books and records as well as IT systems and electronic sale machines used by registrants for selling goods, providing services or importing service taxable to VAT or Table Tax in order to verify compliance of registrants to calculate such taxes as per the present law.
The Minister or the person so authorized may decide the procedural provisions and rules required to apply the provision of the present law according to the business operations of some registrants.

Repealed(26)

(26) Article (53) was repealed by Law No. (206) of 2020 - Official Gazette - Edition (42 bis C) issued on October 19, 2020; and it used to read as follows:
(Article 53)
The Minister may establish one or more systems that enable ETA to electronically receive tax returns, copies or data of tax invoices issued by or for the registrant. The registrant shall present the invoice copies or data and receipts of cash register machines to ETA upon request according to such system.
The Minister or the person so authorized may oblige all or some enterprises to use cash register machines that declare the amount of sales or supplies and the due tax thereof.

Any transaction the main purpose(s) thereof is to avoid compliance, deferral, or reducing the burden of VAT and Table Tax shall not be taken into consideration. In the application of this article, the following shall be deemed tax avoidance:
1. transactions among related enterprises in terms of selling goods and services subject to VAT or Table Tax, where the objective thereof is to avoid reaching the legally set registration threshold for one or more of such enterprises.
2. Setting up or division of enterprises or breaking down transactions thereof for tax purposes.
In case the transaction is deemed as tax avoidance, ETA has the right to oblige the taxable person to register or pay the tax based on the actual value according to market conditions and transaction forces. That is without prejudice to the right of taxable persons to prove that the transaction is carried out for purposes other than tax avoidance.
One committee or more shall be formed and chaired by the Commissioner of ETA or the person so authorized in addition to members from ETA staff who at least assume the position of a general manager. The committee shall be responsible for considering avoidance cases and committee decisions shall be binding to tax office concerned.

All Repealed(27)

(27) Chapter III of Section (4) except for Article (62) were repealed by Law No. (206) of 2020 - Official Gazette - Edition (42 bis C) issued on October 19, 2020; and such articles used to read as follows:
Article (55)
The notification sent via a certified mail or through any electronic means for which in pursuance of the Law of Electronic Signature no. 15 of the year 2004 shall be determined by a Ministerial decree that shall be legally authentic and shall have the same effect as the notification using legal methods including notifying such person subjected to seizure procedures with a copy of the seizure report.
The notification shall be legally valid whether the registrant received the notification from the tax office or the appeal committee concerned or in the registrant enterprise premises or chosen domicile.
In case the enterprise is closed or the registrant is unavailable where it is difficult to be notified using one of the aforementioned notification methods or in case the registrant refuses to receive the notification, an ETA officer authorized to practice judicial seizure shall write a report on the incidence that shall be posted on the announcement board of the relevant tax office or appeal committee, as the case may be, as well as on the premises of the registrant enterprise.
In case the notification is sent back indicating that the enterprise does not exist or that the registrant address could not be found, the registrant shall be notified before the public prosecution after carrying out the necessary investigations.
The announcement made as well as the notification given as previously explained before the public prosecution shall be deemed a decisive procedure to avoid the statute of limitation.
In cases prescribed in the third and fourth paragraphs of this article, the registrant may appeal tax assessment decision taken by ETA or appeal committee decision, as the case may be, within sixty (60) days as of the date of seizure, otherwise the decision of tax assessment made by ETA or appeal committee decision shall be final.
ARTICLE (56)
In case of tax amendment or assessment by ETA, the registrant shall be notified via certified mail or through any electronic means as per the Law of Electronic Signature or through any other written means in virtue of which ascertained knowledge of such amendment or assessment is established.
Registrants may appeal such amendment or assessment within thirty (30) days as of date of notification of such tax amendment and/or assessment.
The appeal document of such tax amendment or assessment submitted by the registrant to the tax office shall be of three copies, one of which stamped with the submission date shall be delivered back to the registrant. The tax office records the appeal data and summary of any contained disputes in a special log.
ETA shall review the appeals through internal committees, whose formation, premises and jurisdiction are determined by a decision of the Commissioner of ETA, within sixty (60) days as of the submission date of appeal.
In case disputes are settled, the tax shall be final.
In case disputes are not settled, the tax office shall notify the registrant of such result, and shall refer the disputes to the appeal committee concerned within thirty (30) days as of the date of dispute resolution, provided that the tax office notifies the registrant of such referral via certified mail. Upon the elapse of the thirty-day period and in case the tax office did not refer the dispute to the appeal committee concerned, the registrant may present the matter in writing or via certified mail directly to the committee chairman within fifteen (15) days as of the elapse of the previously stipulated period. The committee chairman shall, within fifteen (15) days as of the date of presenting the case or receiving the certified mail, set a date for a session to consider the dispute and give orders to study the registrant file.
The procedures stipulated in this article may be carried out via any electronic means determined by the Minister.
Tax amendment or assessment by ETA shall be deemed final in case an appeal is not submitted during the aforementioned periods.
Executive Regulations shall govern the rules of the formation of internal committees and work procedures thereof and validate the agreements concluded before such committees.

ARTICLE (57)
Appeal committees shall be formed by virtue of a decree by the Minister or the person so authorized and be chaired by a chairman who is not from ETA staff. Each committee includes two ETA members selected by the Minister or the person so authorized, and two experts nominated by the syndicate of commercial professionals who are registered in the list of accountants and auditors for corporations in the public register of freelance profession of accounting and auditing.
The Minister or the person so authorized may appoint alternate members to ETA staff members in such committees in cities with only one committee. The original members shall be deemed backup members for other committees in cities with more than one committee. Secondment of such members instead of the committee original members who fail to attend the committee sessions shall be the jurisdiction of the chairman of the original committee or the oldest committee member upon the absence of the chairman.
Committee sessions shall not be legally concluded unless the chairman and at least three members attend. The secretary of the committee shall be an employee seconded by ETA.
Appeal committees shall be permanent and shall be reporting directly to the Minister. The formation of such committees, premises, jurisdiction and compensations for committee members shall be decided by the Minister or the person so authorized.
ARTICLE (58)
Appeal committees shall resolve all disagreements between registrants and ETA on disputes related to taxes stipulated herein.
The committee shall notify both the registrant and ETA of the appeal session at least ten (10) days prior to session date via certified mail. The committee may ask both the registrant and ETA to present all necessary data and documents. The registrant shall attend before the committee by himself or by a representative; otherwise the committee shall resolve the appeal as per the submitted documents.
The committee shall issue its decision taking into consideration ETA assessment and the registrant requests. The tax assessment shall be amended according to the committee decision. In case VAT has not been collected yet, tax shall be collected by virtue of such decision.
ARTICLE (59)
Sessions of appeal committees shall be confidential and shall take justifiable decisions with the majority of the attending members. In case of equal votes the committee decision shall be in favor of the chairman’s side of voters. Decisions shall be signed by the committee chairman and secretary within a period not exceeding fifteen (15) days as of the issuance of decisions.
The committee shall observe the general rules and principles of litigation procedures. Both the registrant and ETA shall be notified of the committee decision via certified mail. The tax shall be payable based on the decision of the appeal committee. Challenging the decision of the appeal committee before the administrative court will not prevent tax collection.
ARTICLE (60)
Both the registrant and ETA may challenge the decision of the appeal committee before the court concerned within sixty (60) days as of the announcement date of the decision.
ARTICLE (61)
The court may consider lawsuits brought by or against the registrant in a confidential session in which the court ruling shall be made promptly.

Arbitration provisions and procedures stipulated in the Customs Law shall be applied to imported goods and services under the control of the Customs Authority.

*(28)
For purposes of executing such work and by a virtue of a written permission from the Commissioner of ETA or any person so authorized, ETA employees shall inspect laboratories, plants, warehouses, shops and enterprises of business in taxable goods or services and in case of seizure, officials from other authorities may, if necessary, be utilized.

(28) 1st paragraph of article (63) was repealed by Law No. (206) of 2020 - Official Gazette - Edition (42 bis C) issued on October 19, 2020; and such articles used to read as follows:
(1st paragraph of article 63)
ETA employees whose positions are determined by virtue of a decree issued by Minister of Justice in agreement with the Minister of Finance shall have the powers of judicial officers in the application of the provision hereof and in implementing decisions thereof.

*(29)
ETA employees, who have the powers of judicial officers have the right to access and seize papers, documents, books, records and invoices regardless of type, related to the application of the provisions of this law, upon finding evidence proving violation of the provisions thereof.
Such employees may, by virtue of a written permission from the Commissioner of ETA or any person so authorized, take specific samples of goods for purposes of analysis or examination.

(29) Article (64) except 1st and 2nd paragraphs were repealed by Law No. (206) of 2020 - Official Gazette - Edition (42 bis C) issued on October 19, 2020; and such articles used to read as follows:
(Article 64 except 1st and 2nd paragraphs)
Every person who, in their professional capacity and/or jurisdiction, has the authority to assess, charge or collect taxes stipulated herein or to settle disputes related to such taxes, shall be obligated to observe the profession confidentiality.
ETA staff whose job is not directly related to assess, charge or collect taxes may not provide any data, or give access to any papers, statements, files or other types of data to third parties unless only in legally such data is authorized for provision to third parties.
ETA staff may not provide any data included in tax files unless upon a written request by the registrant or by virtue of a provision of any other law.
Giving information to successors of registrants referred to in Article (8) herein, or exchange of information and data among revenue authorities affiliated to the MOF in accordance with the organization made by a ministerial decree is not considered a disclosure of confidentiality.

In cases other than being caught red-handed, no investigation procedures may be triggered against ETA employees who have the capacity of judicial seizure during the course of or due to performing work unless such investigation procedures are taken by virtue of a written request from the Minister or any person so authorized.
In all cases no criminal action may be filed against such employees until obtaining such request.