Ministry of Finance Decree No. 172 of the year 2015 Amending Some Provisions of the Executive Regulations of the Income Tax Law promulgated by the Minister of Finance – Decree No. 991 of the year 2005
Article (74):
In applying Article (56) of the Law, the share of a permanent establishment operating in Egypt in the administrative expenses, and in the control and supervision expenses borne by its head office abroad shall not be considered to be service charges.
When determining the profits of a permanent establishment, the amounts approved as administrative expenses and control and supervision expenses which are borne by its head office abroad shall not exceed (10%) of the net taxable profits of that permanent establishment; provided, however, that the expenses sustained within the said percentage shall not include any royalties, yields, commissions, or direct wages, and a certificate duly approved and certified by the head office’s auditor shall be provided.
Article (76):
Establishments, persons, and entities set out in the first paragraph of Article (56) of the Law, including companies, establishments and branches set up pursuant to the Law of the Economic Zones of Special Nature, as well as projects established under the free zone system, shall withhold the due tax at the rate determined in the said Article, and remit it on Form (11-Tax Withheld) to the Department of Collection of Tax Withheld at Source, an affiliate of the Central Administration of International Treaties, in the Tax Authority.
Article (82), first paragraph:
Apart from dividends paid by associations of capital, amounts withheld from any private sector person on account of the tax shall be remitted by the entities and establishments prescribed in Article (59) of the Law, as follows:
1- Amounts withheld shall be remitted on Form No. (41-Tax Withholding and Collection) accompanied by a check, or shall be remitted in cash, or via electronic means of payment as prescribed in the third paragraph of the present Article.
2- Amounts withheld shall be remitted to the Central Department for Gathering of Deduction and Collection Forms on account of the tax, no later than the end of April, July, October, and January of every year.
Article (89):
The amounts that have been deducted, credited, or collected, as the case may be, on account of the tax, as pursuant to Article (72) of the Law, shall be remitted on Form No. (41 – Tax Withholding, Credit, and Collection) or Form No. (41 – Tax Withholding and Collection), as the case may be, to the Central Department for Gathering of Deduction and Collection Forms on account of the tax, accompanied by a cheque, or shall be remitted thereto in cash, or via electronic means of payment as prescribed in these Executive Regulations, no later than the end of April, July, October, and January of every year. The aforementioned Form shall include the taxpayer’s data based on the tax card, and shall specify accurately the tax registration number/ tax file number/ the competent tax office/ and the nature of the transaction. The cheque’s particulars shall be completed with respect to the signatures, the drawee bank and the name and title of the signatory of the form designated for that purpose.
Article (110):
Entities required to apply the provisions of deduction and credit on account of the tax, shall remit the collected amounts no later than the end of April, July, October, and January of every year, based on the two records set out in Article (111) of these Executive Regulations.
The two records shall contain the following data for each tax period:
1- The name of the recipient of such amounts, his tax file number and the competent tax office;
2- The value of the amounts paid on account of the tax and the percentage of deduction credit, as the case may be; and
3- The serial number and date of the cheque by which such amounts have been remitted.
These entities shall make these records available for inspection by the General Department for Audit and Collection on account of the tax. A copy of these records shall be sent to the competent tax office.
