Main objectives of Paris Agreement are:
· Preventing exploitation of international agreements in evading taxes.
· Highly effectuating settlement techniques of international tax disputes.
· Boosting investment environment and safeguarding the State Public Treasury's revenues due from foreign companies
· Reviewing as many as 35 out of 58 bilateral agreements signed by Egypt in order to prevent double taxation.
- OECD hails Egypt's efforts in upgrading taxation sector.
- An OECD delegation to arrive to Cairo after vacation of the Lesser Bairam (Eid-ul-Fitr) to discuss means of developing international taxation sector.
Mr. Amr Almonayer, Vice Minister of Finance for Tax Policies, announced that Egypt signed its first international multilateral agreement that aims to put an end to tax evasion worldwide in a way that guaranteeseach country receiving its fair tax revenues from cross-border economic transactions and activities.
The agreement was signed by a representative for Egypt at the premises of the Organization of Economic Cooperation and Development (OECD) in Paris in the attendance of finance and foreign ministers together with government officials of 67 countries, said Mr. Almonayer.
Meanwhile, Egypt and Kuwait are the only two Arab countries engaged in Paris Agreement together with many major European countriesand also besides India, China, Japan, South Africa and Indonesia, notes Mr. Almonayer.
The said agreement shall allow the reviewing of 35 out of 58 bilateral agreement signed by Egypt with other countries to prevent double taxation, which in turn will give momentum to the Egyptian economy as well as safeguard the State's tax revenues, Mr. Almonayer indicates.
He further adds that the amendments to be enforced upon the signing of the agreement shall be simultaneously applicable in all other agreements, without the need of the usual long negotiations used to be conducted in the past.
In a joint meeting held between Mr. Almonayer and Mr. Pascal Saint-Amans, Head of the International Cooperation and Tax Competition Division at the OECD, after the signing of the agreement, the latter hailed Egypt efforts in this respect as well as in regaining its position in the international arena, stressing OECD's willingness to provide Egypt with all the required technical support and expertise related to the application of the new agreement.
Thanks to painstaking efforts of the Ministry of Finance's teamwork, headed by Ms. Mai Abou Ghali, 1st Senior Assistant to Vice Minister of Finance for Tax Policies, and also to continuous coordination with OECD, Egypt managed to meet the slated date of signing the agreement.
It is worthy to note that OECD presented an anti-tax evasion work plan worldwide. Topping its priorities was the conclusion of an international agreement in this effect which was consequently adopted by the G20 in its meetings in September 2013.
Ms. Mai Abou Ghali highlighted that signing the multilateral agreement was indeed a significant step in Egypt's international tax reform plan and a means to establish fair tax policies for both taxpayers and Tax Authority.
She added that the OECD's report issued in September 2014 and approved by the G20, tackling the development of multilateral techniques for amending bilateral tax agreements, underlined the need to halt manipulative practices of some international companies in taxation issues. It was noted that these companies made advantage of the applicable bilateral agreements to evade taxes or to unfairly paywhichever taxes are lesser in the two signing countries of the agreement.
Ms. Abou Ghali noted that an OECD delegation is scheduled to pay a visit to Egypt after the vacation of the Lesser Bairam (Eid-ul-Fitr) to investigate means of developing the Egyptian international tax sector as well as to support the government with the necessary technical expertise in this respect.