- On November 17, 2024, the Egyptian Tax Authority (ETA) issued Instruction No. 78 of 2024.
- This new instruction cancels previous Instructions No. 5 and 6 of 2019.
- The prior instructions imposed a 14% Value Added Tax (VAT) on amounts transferred from foreign companies to their agents, representatives, and branches in Egypt.
- The new instruction is effective immediately from its issuance date.
- Any VAT or scheduled tax collected before this instruction must still be remitted to the ETA on time.
- The update indicates a significant change in the VAT treatment of exported services, potentially allowing for a 0% VAT rate.
- This change aims to reduce the tax burden on exported services and improve the business environment in Egypt.
Source: deloitte.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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