“Taxes” explains a simplified method for calculating tax transactions on projects

Fayez Al-Dabaani, head of the Tax Authority, confirmed the Authority’s keenness to provide all facilities to taxpayers.

He pointed out that Article Three of the Income Tax Law promulgated by Law No. 30 of 2023 provides unprecedented facilities to establishments and companies, in the event of a dispute with the Tax Office over taxes that are not final and due before 6/16/2023, and are pending before any of the internal committees or appeal committees or Before the dispute settlement committees, he said that in this case the financier can deal with simplified tax procedures and benefit from the provisions of Article Three of Law No. 30 of 2023, provided that the annual turnover does not exceed 10 million pounds.

How to calculate tax transactions on your project

Al-Dabaaani explained that the simplified tax treatment in light of the provisions of Article Three of Law No. 30 of 2023 is as follows:

- If the turnover is less than 250 thousand pounds, the tax due annually is 1,000 pounds.

- If the turnover is from 250 thousand pounds to less than 500 thousand pounds, the tax due annually is 2500 pounds.

- If the turnover ranges from 500 thousand pounds to less than one million pounds, the tax due annually is 5,000 pounds.

- If the turnover ranges from one million pounds to less than 2 million pounds, the tax due annually is 0.5% of the turnover.

- If the turnover ranges from 2 million pounds to less than 3 million pounds, the tax due annually is 0.75% of the turnover.

- If the turnover ranges from 3 million to 10 million pounds, the tax due annually is 1% of the turnover.

Ending the conflict within the department

He said that the Tax Authority issued Executive Instructions No. 95 of 2023 regarding the mechanisms for implementing Article Three of Law No. 30 of 2023, in order to unify the foundations for applying this article at all levels of appeal and ending the dispute within the Authority.

Pointing out that the instructions included that the municipalities, internal committees, and appeals committees, as well as the dispute settlement and anti-tax evasion committees, must apply the text of Article Three of Law No. 30 of 2023 automatically and not suspend its application on a request submitted by the taxpayer, with the taxpayer having the right to demand that he be held accountable in accordance with Law No. 91 of 2005. And its amendments.

Calculating the taxpayer's annual turnover after excluding the salary tax base

The head of the Tax Authority added that, according to Executive Instructions No. 95 of 2023 regarding the mechanisms for implementing Article Three of Law No. 30 of 2023, the scope of application of this article includes all bowls except the real estate transactions bowl, as it includes the commercial, industrial, and professional activity bowl and the real estate wealth bowl, and that The taxpayer's annual turnover must be calculated after excluding the salary tax base and the like, and the tax is calculated accordingly.