Egypt adopts a package of measures to confront economic challenges.. full details
• Allocating 130 billion pounds to deal with the repercussions of global economic challenges and mitigating their effects on citizens
• A new financial package for social protection and improving wages with the April salary
• Provision of 2.7 billion pounds to include 450 thousand new families for beneficiaries of "Solidarity and Dignity"
• Allocating 190.5 billion EGP to the National Authority for Social Insurance to disburse the pension increase by 13% with a minimum of 120 EGP starting from the beginning of April
• Increasing the tax exemption limit by 25% from 24 to 30 thousand EGP.. To relieve citizens
• Increasing the periodic allowance for civil service contacts to be 8% from The
job wage
is a minimum of 100 pounds per month, starting from the next month
• Increasing the additional monthly incentive for addressees and non-citizens in the civil service in cut-off financial categories as of next month
• 175 pounds for the sixth degree, 225 pounds for the third degree, 275 pounds for the second degree, 325 pounds for the first degree, and 400 pounds for the excellent degree
• Provision of 36 billion pounds for the disbursement of the periodic increment for civil service attendees and the bonus
Specifying the customs dollar at a value of 16 pounds for basic commodities and production requirements by the end of next month
• The state’s public treasury bears the value of the real estate tax due on the industrial sectors for a period of 3 years, at a value of 3.75
billion
EGP
• Renewal of the law on ending tax disputes and the provisions and procedures established until December 31 next year
• Amendments to the draft income tax law to revitalize the Egyptian Stock Exchange
• Exempting investment funds and vessels invested in the stock market from tax
• Establishing a mechanism that allows deduction of tax on distributions within the compound tax structures to encourage investments in Egypt
• Amending the tax treatment of investment funds to encourage institutional investment
• Exempting investment funds In debt instruments, investment funds in stocks listed on the stock exchange, and venture capital funds and companies
• Advantages of simplified accounting for individual and institutional investors to achieve tax justice
• Profits achieved during the tax suspension period are not subject to
• Giving investors an additional set of tax incentives to support the capital market and increase the demand for trading companies in the stock market
• Exempting a percentage of the realized profit for shareholders equivalent to the credit and discount rate issued by the Central Bank at the beginning of each calendar year
• Deducting 50% of the value of the capital gains realized at the initial offering on the stock exchange for a period of two years from the date of issuance of the law
• Not considering the exchange of shares between Restricted companies and non-restricted companies as a tax-creating fact to encourage the increase in the structures of companies listed in the stock exchange
• Companies benefit from the simplified tax treatment
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Egyptian Finance Minister Mohamed Maait announced that, in implementation of presidential directives, a package of financial and social protection measures worth 130 billion pounds has been prepared to deal with the repercussions of global economic challenges, and mitigate their effects on citizens, noting that 2.7 billion pounds will be arranged to include 450 A thousand new families for “Solidarity and Dignity” beneficiaries, allocating 190.5 billion pounds to the National Social Insurance Authority to disburse the annual increase in the value of pensions by 13% with a minimum of 120 pounds, starting from the first of next April, and increasing the tax exemption limit by 25% from 24 to 30 Thousand pounds.
The minister added that, starting from next April’s salary, the periodic bonus will be paid to those who are addressed by the provisions of the Civil Service Law, which has been increased to 8% of the job wage, with a minimum of 100 pounds per month, and without a maximum, and state workers who are not addressed by the provisions of the Service Law will be granted. Civilians, a special bonus of 15% of the basic wage or its equivalent in the comprehensive reward for each of them, with a minimum of EGP 100 per month, and no maximum.
The minister indicated that, starting from next April’s salary, the additional monthly incentive will be increased for employees who are addressed by the provisions of the Civil Service Law and workers not addressed by it, in cut-off financial categories of 175 pounds for occupants of the sixth, fifth and fourth degrees, 225 pounds for third-degree occupants, and 275 pounds for occupants of the degree The second, 325 pounds for first-class occupants, 350 pounds for general manager rank holders, 375 pounds for high-grade occupants, and 400 pounds for excellent-class occupants or the equivalent of each, and whoever is appointed after this date benefits, and this incentive is considered part of the complementary wage or wage Variable, so the minimum increase for the periodic bonus and additional incentive is 300 pounds per month.
The minister explained that 36 billion pounds will be arranged to disburse the periodic bonus to those who are addressed by the provisions of the Civil Service Law at 8% of the job wage, with a minimum of 100 pounds per month, and without a maximum, and to grant state workers who are not addressed by the provisions of the Civil Service Law, a special bonus of 15% of The basic wage, and the additional incentive for all of them, as of next month, as part of the financial allocations for wages in the budget for the next fiscal year, amounting to 400 billion pounds.
The minister indicated that the customs dollar was set at a value of 16 pounds for basic commodities and production requirements at the end of next month, pointing out that the state’s public treasury bears the value of the real estate tax due on the industrial sectors for a period of three years, at a value of 3.75 billion pounds.
The minister emphasized that the amendments to the draft income tax law include reforms related to revitalizing the Egyptian Stock Exchange, according to what was agreed upon with investors and the stock exchange to support and encourage investment in it.
To encourage investments in Egypt;
Provided that it is not used to avoid tax, and the tax treatment of investment funds has been modified, to encourage institutional investment, which supports the economy and emerging companies, while putting in place controls that ensure the safety of implementation;
In accordance with international applications, the exemption of investment funds in debt instruments, investment funds in stocks listed in the stock exchange, and venture capital funds and companies, and that policyholders are subject to 5% for natural persons and 15% for legal persons, and charitable funds are completely exempted, and a “transparent entity was established for taxation.” » To invest individuals in the Egyptian Stock Exchange through specialists;
Which creates a good investment environment to support the Egyptian economy.
The minister added that the amendments include advantages for simplified accounting for individual and institutional investors, and for the purposes of achieving tax justice, the articles of the law were amended to ensure that profits achieved during the tax suspension period are not subject to taxation, and to give investors a set of additional tax incentives to support the capital market and increase the demand for trading, as well as listing companies in The stock exchange, and exempting a percentage of the realized profit for shareholders equivalent to the credit and discount rate issued by the Central Bank at the beginning of each Gregorian year, and deducting 50% of the value of the capital gains achieved at the initial offering on the stock exchange for a period of two years from the date of issuance of the law, which is reduced to 25 After that, and in the case of an increase in capital through initial offerings, this sale will not be considered as a tax-generating event on capital gains, and the exchange of shares between listed companies and non-listed companies will not be considered as a tax-generating event to encourage the increase in the structures of companies listed in the stock exchange.
The minister indicated that the renewal of the law on ending tax disputes and the provisions and procedures in force in this regard until December 31, 2022, to speed up their completion and reduce the burden on the tax authority within the framework of working on its automation and development, and providing an incentive for people to request electronic invoices and receipts, while obligating the business community. With electronic invoices from 2023, as well as the inclusion of the simplified tax treatment in the income tax law, which will benefit all businesses.
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