CORONA TAX EXECUTIVE REGULATIONS IN EGYPT
On August 13th,2020, the Government of Egypt issued Law No.170 for the year 2020. Below are the main points issued in the Executive Regulations.
The Law requires companies to deduct 1% from all its employees ‘new salaries for 12 months from August 13, 2020 whether employed in the private or public sector except for those with a monthly income of 2,000 EGP or less (total monthly income not based on a monthly salary). Pensioners will see 0.5% less in their monthly paid out pensions for the same 12 months.
All proceeds will be contributed to the ‘Epidemics & Natural Disasters’ bank account at the Central Bank Of Egypt to help support the effort of protecting the nation from the pandemic.
1% is to deducted from all net salaries for a period of 12 months & 0.5% from all pensions paid out to pensioners. The period of 12 months can reduce or increased by Egyptian Prime Minister.
A decision by the Egyptian Prime Minister may fully or partially exempt those who are economically affected.
This Law does not apply to employees with a net salary of 2,000 EGP or less nor does it apply to pensioners who receive 2,000 EGP or less.
Employers & the Social Insurance Authorities are responsible of deducting the amounts and remitting them to the bank account specified by the Ministry Of Finance (to be known once the Executive Regulations are published).
The Egyptian Prime Minister shall issue the Executive Regulations of the law in the coming days which outline the detailed process in the regards to the implementation of the law.