The Clap
The IMF report from yesterday’s meeting included some of the most important tax measures that the government could take, and these are the most important points:
- Cancellation of income tax exemptions for companies operating in free zones
- Generalization of the value added tax (VAT) to be applied to all products, excluding essential food products
- General real estate tax reforms
- Increasing license renewal fees for vehicles to be 1% of the vehicle value
So What
Companies operating in free zones are required to export 50% of their products, and to encourage this, the government will exempt them from taxes.
Now What
The Minister of Finance said that there is a new tax policy document that will be worked on and will be announced by President Abdel Fattah El-Sisi in the near future, and it will be fixed for the next 5 years.
To read the full report, click here.
