New Financial Rules due to COVID-19

Written By - Hatem Ahmed Sayed, Senior Associate
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Law No. 24 of 2020 issued by the Egypt’s President Abdel Fattah El Sisi on 07/05/2020 stated that the Council of Ministers may undertake the following:

  • Postpone the payment of all or part of the real estate due tax for a period of three months as maximum. This period can be renewed for a similar period and this shall apply on all or some of the licensed real estate used in the economic sectors that have been affected by the Coronavirus (Covid-19) pandemic.
  • Extend the deadlines for submitting the tax returns due during Coronavirus (Covid-19) pandemic or extending the deadlines for paying all or part of the tax due in accordance with the provisions of, both, the Income Tax Law or the Value Added Taxes, for a period not exceeding three months that may be renewed for a similar period. Such shall apply to the financiers or registered in the economic, production, or service sectors which are affected by the Coronavirus (Covid-19) pandemic. Such shall not cause delay fines or additional tax depending on the circumstances. Such periods of the extension are not included in the calculation of the prescribed tax period.
  • Administrative services’ fees and chargers to be paid on installments over three months as maximum without interest. This might be renewed for a similar period to all or some of the licensed real estate used in the economic, production, or service sectors which are affected by the Coronavirus (Covid-19) pandemic.
  • Postpone payment or installment of all or some of the social insurance contributions due, including the worker’s share and the enterprise’s share without calculating additional amounts for a period not exceeding three renewable for a further period similar to those of the economic, productive or service sectors affected by the consequences of the Coronavirus’s new pandemic. Companies that would like to benefit from that shall not terminate all or part of its employees of all kinds or decrease their basic salaries as a result of these circumstances.

 

If you are interested to know more about the above New Financial Rules issued due to the Coronavirus (COVID-19) pandemic, please send us on lucy@levarilaw.com