The Latest Decisions Adopted in 2023
Digitalization is ETA's Focus
The Egyptian Tax Authority (ETA) exerted a great effort to apply digitalization for tax. It seeks to provide e-tax services to citizens without imposing additional burdens or commissions. It also paid attention to raising the efficiency of ETA’s employees, introducing them to use digitalization in their business, and developing the necessary infrastructure needed for mechanization. In line with its efforts, it has issued several decisions and develop many systems to improve digitalization in the authority.
ETA’s Latest Electronic Systems
A System for Standardizing the Principles and Standards for Calculating Wage and Salary Tax
How this System developed?
E-Tax, a technology and tax solutions company owned by the Ministry of Finance and e-finance, has signed a contract with the Egyptian Tax Authority (ETA) to launch the first government system that aims at unifying the criteria for calculating wages and salaries tax.
The System’s Objectives
This system is part of the government and the Ministry of Finance (MoF)’s strategy to apply automation and digitalization of tax systems. It aims at strengthening the integration between the tax, social insurance, and universal health insurance authorities to ensure accurate deductions for government wages, simplifying procedures related to salary tax, facilitating tax compliance, empowering government employees across various sectors to access detailed information about their salaries, and achieving fairness and transparency between all parties: employees, business owners, the Egyptian Tax Authority (ETA), social insurance and universal health insurance authorities.
The System’s Phases
This system is divided into eight phases:
| Phases | Decision | No. of Companies to Adopt the System | Date of Application |
| 1st Phase | No. 137 of 2023 | 16 | March 15, 2023 |
| 2nd Phase divided into 2 sub-phases | No. 175 of 2023 | 1st phase: 100 2nd phase: 200 | 1st phase: May 15, 2023 2nd phase: June 15, 2023 |
| 3rd Phase | No. 251 of 2023 | 327 | August 15, 2023 |
| 4th Phase divided into 3 sub-phases | No. 386 of 2023 | 1st phase: 500 2nd phase: 1000 3rd phase: Funded companies at the 1st large taxpayer center. | 1st phase: October 15, 2023 2nd phase: December 15, 2023 3rd phase: February 15, 2024 |
| 5th Phase | No. 386 of 2023 | Funded companies at the 2nd large taxpayer center. | April 15, 2024 |
| 6th Phase | No. 386 of 2023 | Funded companies at the rest of the tax centers and joint-stock and investment companies tax authorities in Cairo, Alexandria, and South Valley. | July 15, 2024 |
| 7th phase | No. 386 of 2023 | Funded companies at the tax authorities belonging to the fourth Cairo region and all integrated tax offices | October 15, 2024 |
| 8th phase | No. 386 of 2023 | Funded companies at the rest of the Egyptian Tax Authority’s offices | December 15, 2024 |
Incentive Program (Your Bill, Your Protection, Your Prize)
What is the Incentive Program (Your Bill, Your Protection, Your Prize)?
The incentive program under the rubric (Your bill, Your protection, Your prize) is an electronic system launched by the Ministry of Finance (MoF) and the Egyptian Tax Authority (ETA). It is the first program of its kind to make the citizen a basic partner for the success of the electronic taxes.
The Program’s Objectives
The incentive program is one of ETA’s moves towards digitalization. It aims to create a new tax culture that urges citizens to ask for a receipt or invoice from shops and stores. It also gives incentives and benefits to citizens when they receive a receipt or invoice while purchasing a commodity or obtaining a service. This came within framework of Egypt’s plan to achieve tax justice, curb tax evasion, and merge the non-official economy in the formal system. It is also a tool for a clear economic vision.
How to Register E-Invoice on the Portal?
In order to register e-invoice on the portal, follow these steps:
- The seller sends a free text message from the number registered on the system, containing the citizen’s phone number and the invoice value to 9119.
- The system sends a text message from ETA Rewards to the citizen containing the purchase transaction’s details.
- The citizen sends a confirmation code to 9119.
- The citizen receives a text message that includes his discount code, its validity date, and a link containing the gift dealers’ names to obtain the discount.
ETA’s Latest Decision on This Program
ETA issued a decree no. 515 of 2023 stipulating that those who issued e-invoice are obliged to register on the online portal for the incentive program under the rubric “your bill, your protection, your prize” to control the collection of Value Added Tax (VAT), starting From October 2023.
It is clear that ETA is moving towards digitalization and adopting a strategy and course of action to convert all tax services into a digital format by automating all procedures and providing services through a digital system without human interference. This came in accordance with Egypt’s vision for 2030 to speed up and simplify the process for citizens through digitalization and to improve its ranking in international competitiveness indices.
Best Tax Services With AHG Chartered Accountants
AHG Chartered Accountants provides creative tax services to many individuals and businesses, including tax compliance audit, corporate tax, salaries tax, VAT services, income tax, excise tax, estate, gift & inheritance tax, tax implementation and effect, tax studies, and tax disputes resolution. Our professional AHG team has a strong understanding of the tax laws in Egypt and will give you the best tax advice and services you need. If you want to know more about our service, click here.
