Customs & Taxation Committee
New tax regulations demystified
The Customs & Taxation Committee met on October 23 with guest speaker Ashraf El Araby, head of the Taxation Authority, to discuss the topic of “New tax legislation and regulations.”
Rather than giving a prepared speech, El Araby fielded questions from attendees regarding the new tax law. Most of the inquiries were about the proposed value added tax (VAT), the real estate tax, the regulations for corporate tax inspection and how to settle disputes between taxpayers and the Taxation Authority.
El Araby discussed the proposed VAT, which is to be submitted before parliament for approval. He pointed out that banking services, including ATM services, would not be charged under the proposed tax.
He then discussed the sales tax’s impact on imported goods, clarifying that the decision to charge this tax was made in the courts, though different courts in different judicial districts have made contradictory decisions. He added that those declared exempt by the courts that have already paid the tax have a right to recover this payment from the Tax Authority.
El Araby also spoke about the real estate tax, noting that it is one of the oldest taxes and that it has been amended several times. The latest amendment stipulates that apartment owners must continue paying taxes on unoccupied properties, not just flats earning rent. This amendment is an attempt to increase the number of apartments on the market, thus providing additional options to those without real estate assets, and expand the government’s tax base.
He then commented on companies still in the tax exemption period that want to expand, saying that those firms must first consult the investment authority in order to determine their tax situation.
Other issues were raised, such the inclusion of capital goods in the scope of the incoming value added tax.
Top
|
