EGYPT Law and Practice Contributed by: Mohamed Hashish, Heba El Abd, Farida Rezk, Omar Aboul-Ella, Mariam Rabie and Mohamed Selim, Soliman, Hashish & Partners
• enabling the ETA’s employees to perform their duties with regard to the procedures of review, examination, completion and control; • notifying the ETA of any changes in the activ - ity or establishment within the specified legal period; • determining the responsible person(s) dealing with the ETA, whether the individual con - cerned or a legal representative thereof; • calculating the tax correctly in accordance with the laws and regulations; • paying tax in the manner and within the time limit specified; and • including the unified tax registration number in all correspondence and dealings with the ETA or third parties. Further, legal persons who sell a commodity or provide a service shall register all their pur - chases and sales of goods and services on the electronic system, in a manner that ensures that the ETA can track the movement of transactions permanently, and determine the size, value, par - ties involved, and other matters necessary for assessing and collecting the prescribed tax. 5.8 Tariffs Customs and tariffs in Egypt are governed by Law No 207 of 2020 (the “Customs Law”) and Decree No. 218 of 2022 issued by the President of Egypt and amended by Presidential Decree No 67 of 2023 (the ”Customs Tariff Decree”). Under the Customs Law, a customs tariff is defined as a table formulated based on the description and classification of goods. It sets forth the application rates of customs duty lev - ied on such goods, in addition to the general interpretative rules governing the application of these duties. Simultaneously, the Customs and Tariff Decree sets out the rules, categories, and schedules of the customs tariff, as well as any amendments or cancellations.
According to the Customs Tariff Decree, goods temporarily exported for repair are taxed upon re-import at 10% of the total repair cost, includ - ing transport and insurance. Additionally, goods exported for completion of manufacture are taxed upon re-import at the rate applicable to the final product, calculated on the cost of the finishing work plus transport and insurance. With regard to the tourism sector, hotel and tour - ism establishments may import equipment and machinery (excluding private passenger cars) at a reduced 20% customs duty or the applicable import tax, whichever is lower, under conditions defined by the Minister of Finance. According to the Customs Tariff Decree, the following goods benefit from reduced customs duty rates: • infant formula manufacturers: 2% of the value or the applicable import tax, whichever is lower, on raw materials and inputs; • Arab Petroleum Pipelines Company: 2% of the value or the applicable import tax, whichever is lower, on imports for projects, including machinery and transport (excluding passenger cars); • Arab Organization for Industrialization compa - nies: 5% of the value or the applicable import tax, whichever is lower, on components for overhauling locomotive turbine engines; • electric/clean energy vehicle infrastructure: 2% of the value or the applicable import tax, whichever is lower, on: (a) EV or natural gas refuelling station equip - ment; (b) EV/gas conversion kits; (c) environmental monitoring equipment; and (d) renewable energy components (wind/ solar);
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