Egypt: Decree issued for change in income tax and VAT regulations

The Ministry of Finance issued decree no. 188 of 2023 (9 Apr 2023) providing for a change in the regulations concerning:

• Income tax: Upon determining the taxable net financial and industrial profits of the taxpayers recorded in the e-invoice system, no documents other than the e-invoices will be counted with in evidencing the deductible costs and expenses, with effect from 1 July 2023. This will not apply to the paper invoices previously issued by the taxpayers.
• Value added tax (VAT): In all cases of tax withholding or refund prescribed by articles nos. 22 and 30 of the law, no documents other than the e-invoices will be counted with in withholding or refunding the tax, with effect from 1 July 2023, as regards those recorded in the e-invoice system. This will not apply to the paper invoices previously issued by the responsible persons.
• Unified law of tax procedures: In addition to the data prescribed by article-37 of the law, the e-invoice or e-receipt must contain the following:
  • Code of the commodity/service
  • Registration of the exchange rate at the rates announced by the Central Bank of Egypt, when the invoice is issued in foreign currency
  • Identification of the buyer (i.e., company, person, foreigner, etc.)
  • The national ID number of the buyer or beneficiary, or the passport number of foreigners, in case of unregistered persons, if the value of the invoice or receipt exceeds EGP 150,000
  • Type of tax(es) or duties, if any

Read a 2023 report prepared by the KPMG member firm in Egypt