300 companies.. Committed to the system of unifying the bases of calculating the payroll tax

Dr. Mohamed Maait, Minister of Finance, issued a decision to oblige a number of entities/companies to the second phase of the system for unifying the foundations and criteria for calculating wages and salaries tax.

First sub-stage

According to Minister of Finance Decision No. 175 of 2023, the second stage is divided into two sub-stages, the first sub-stage starts from May 15, 2023 by obligating 100 entities / companies according to the list announced on the website of the Tax Authority.

Second sub-stage

The second sub-stage starts from June 15, 2023, obligating 200 entities/companies according to the list also announced on the Egyptian Tax Authority website.

Reda Abdel Qader, Assistant Minister of Finance for the Egyptian Tax Authority Affairs, said that the application of the system of unifying the bases and criteria for calculating the wages and salaries tax comes from the strategy of the government and the Ministry of Finance for the mechanization and digital transformation of the tax system, as well as with the aim of facilitating the procedures for the payroll tax and strengthening tax compliance.

He added that the system also aims to enable all state employees within the various sectors to view their salary items and the amount of tax due according to the applicable rules.

Unifying the bases for calculating wages tax

Mukhtar Tawfiq, head of the Tax Authority, explained that according to the Minister of Finance’s decision No. (175) for the year 2023, non-entities/companies mentioned in the lists attached to the decision may request the application of a system to unify the bases and criteria for calculating the wages and salaries tax.