According to Mustafa Hassan, an Egyptian accountant and tax expert, the digital transformation in the tax sector has made the process of tax collection and filing much more efficient. The electronic system, which was introduced in 2018, has made it easier for taxpayers to file their tax returns and has significantly reduced tax evasion. Hassan noted that the system has gone through several stages, starting with large companies and then expanding to small and medium-sized enterprises.
The electronic system was first introduced through Law 91 of 2005, which aimed to monitor tax evaders and integrate the informal sector into the formal economy. However, the system faced several challenges due to its incomplete infrastructure. It wasn't until 2018, when the government introduced electronic invoices and receipts, that the system became more effective in preventing tax evasion. Hassan emphasized that the electronic system has made it much harder for individuals and companies to evade taxes.
The electronic system has been implemented in phases, starting with large companies that have the capacity to handle electronic invoices and receipts. Small and medium-sized enterprises followed, and eventually, all entities were required to use electronic invoices and receipts. Hassan explained that the system uses electronic invoices for transactions between companies and electronic receipts for transactions between companies and individuals.
Hassan noted that the initial introduction of the electronic system was challenging for both taxpayers and tax officials. However, as the system has evolved, it has become more user-friendly and efficient. Taxpayers can now file their tax returns online in a matter of minutes, eliminating the need for physical visits to tax offices.
The Egyptian tax law has also introduced specific provisions for non-commercial professions, such as artists, bloggers, lawyers, and doctors. These professions are subject to a specific tax equation, and taxpayers can file their tax returns through the electronic system. Additionally, the value-added tax (VAT) has encouraged taxpayers to file their tax returns, as it allows them to deduct the VAT from their tax liabilities.
The program "Economy and People" on Egyptian television has been discussing the impact of the electronic tax system on taxpayers and the economy. The program, presented by Muhammad al-Bitar and prepared by Heba Wajeh, explores the benefits and challenges of the electronic tax system. The program is part of the Egyptian Radio and Television Union's efforts to provide informative content on economic issues.
The introduction of the electronic tax system is part of Egypt's efforts to modernize its tax sector and improve tax compliance. The system has been designed to reduce tax evasion, increase tax revenues, and provide a more efficient and transparent tax filing process for taxpayers.
Key points
- The electronic tax system has significantly reduced tax evasion in Egypt.
- The system has been implemented in phases, starting with large companies and then expanding to small and medium-sized enterprises.
- The electronic system uses electronic invoices and receipts to prevent tax evasion and improve tax compliance.
