In same context, Ministry of Finance announces:
· Submitting tax returns, online or in paper forms, is optional for natural persons, and shall be obligatory by 2020.
· Electronic Infrastructure for installing the new electronic tax return submittal system has been completed nationwide.
· Egyptian Tax Authority confirms informing senior accountants and taxpayers with the new electronic tax return system.
As of Monday 1st of October 2018, the Egyptian Tax Authority (ETA) and all its affiliate tax directorates shall start to apply an online submittal system for tax returns. This shall be binding for taxpayers registered at the Authority through its website: "http://www.incometax.gov.eg"
Ministry of Finance has stated in a statement recently issued that an agreement has been entered into between ETA and a technological company specialized in electronic systems. The said company shall be assigned the task of preparing online electronic tax return forms to save income or VAT taxpayers’ efforts of going to premises of ETA or its tax offices. Such measure comes within the Ministry of Finance's keenness to facilitate tax payment and avoid crowdedness at tax directorates.
Necessary electronic infrastructure arrangements required for installing the new tax return submittal system has been completed nationwide, the statement notes. After successfully starting its experimental stage last July, the new electronic system requires taxpayers to fill in tax returns for income tax or VAT; and it includes forms for tax deduction and collection under relevant tax accounts as well as forms for dividends registration.
With respect to income tax returns for legal persons (enterprises), minister of finance's decision no. 221/2018 mandates that enterprises shall fill in their tax returns electronically; whereas it remains optional for natural persons to submit tax returns electronically or by hand in the usual paper forms. Nevertheless, electronic tax return submittal shall be similarly binding to natural persons by 2020.
The statement also stresses that VAT returns are monthly registered, and in case of late submittal, a fine shall be levied under relevant law. System of tax collection under the account of taxes is electronically available as of 1st of October, 2018 for all taxpayers dealing with such system.
Taxpayers shall log onto ETA website "http://www.incometax.gov.eg" to fill in their tax returns, which are activated by ETA system according to intent of taxpayers. Namely, a taxpayer is required to specify a secret password for his/her own account, which is deemed - upon logging with such password onto ETA website - an acknowledgement of the authenticity of information stated in his/her tax returns and an irrevocable electronic signature with no judicial recourse. Taxpayers are required to keep their login passwords confidential to avoid any liability.
After filling in electronic tax returns, taxpayers shall pay their respective taxes through electronic payment means or at any bank of their selection, and shall register number of the electronic transaction on their tax returns. Unless taxpayers pay their due taxes as per their tax returns, the new electronic system will not approve any of the submitted tax returns, illustrates the statement.
ETA has confirmed that senior accountants and taxpayers are informed with electronic tax return submittal system which has been successfully experimented, with all measures adopted for its successful, organized and accurate go-ahead.