Taxes: The system for unifying the foundations and standards for calculating the tax on wages and salaries is moving quickly to the electronic system

Dr. Fayez Al-Dabaani, head of the Egyptian Tax Authority, said that the system for unifying the foundations and standards for calculating the tax on wages and salaries is taking rapid and steady steps towards moving from the paper system to the electronic system when calculating the tax on wages and salaries, and dealing with taxpayers in accordance with the latest systems applied globally, and that There is a new thought and cultural shift taking place in the tax administration currently in order to make it easier for financiers, and to consolidate confidence among all parties of the tax community by achieving transparency between the various parties (employees, business owners, the Egyptian Tax Authority, social insurance, health insurance) through the application Uniform rules and standards when calculating taxes on wages and salaries.

Dr. Fayez Al-Dabaani explained that the taxpayer’s failure to commit to listing his company on the system’s actual environment at the time specified in accordance with the binding decision means that he will not be able to pay the amounts withheld from the salary tax account and the like, as well as submit the quarterly form (form 4 salaries), and then The annual settlement, and he stressed that the taxpayer’s failure to submit salary tax returns and the like within the legal deadline exposes him to the penalties prescribed in accordance with the provisions of the Unified Tax Procedures Law No. 206 of 2020 and raises the company’s risk level to a high level, which negatively affects the technical support and procedural facilitations that it provides. Provided by the Egyptian Tax Authority to compliant companies.

For his part, “Sherif Shawky, Partner and Head of the Tax Sector at Price Waterhouse PWC,” said, “The Egyptian Tax Authority is a fundamental and major partner in developing the tax community, and we extend our sincere thanks to it for providing all the required facilities and support, and spreading tax awareness, explaining that the system for unifying the foundations and standards for calculating taxes On wages and salaries, it ensures the confidentiality of salary data, and works to establish the rules of tax justice by unifying the foundations on which an important item of expenditure is built.

This came during the symposium held by Price Waterhouse PWC in cooperation with the Egyptian Tax Authority, in which “an explanation of the system for unifying the foundations and standards for calculating the tax on wages and salaries, how to apply it and the problems resulting from the application, and clarifying the appropriate solutions to them,” was discussed, in the presence of Mohamed Al-Jarhi is the project manager for the system for unifying the foundations and standards for calculating the tax on wages and salaries at the Tax Policies Unit at the Ministry of Finance, Abdel Rahman Younis is the director of the department at the General Administration of Research, and Mohamed Moselhi is the director of payroll tax examination affairs at the Center for Major Financiers, and on the part of Price Waterhouse PWC, Sherif Shawqi is a partner and president. The tax sector, a number of partners in the company, and 80 members of the tax community.

The lecturers explained during the symposium that the goal of the system for unifying the foundations and standards for calculating the tax on wages and salaries is to make it easier for the taxpayer to calculate the monthly salaries tax with ease, and that it works to maximize tax compliance without increasing new burdens on the taxpayer.

They explained the entry methods into the system, which are represented in 3 methods: the manual entry method in the case of a company with the number of employees not exceeding fifty employees, the entry method by downloading an Excel sheet from the system for unifying standards for calculating the wage and salary tax, preparing it and then uploading it to the system, and the method of entering the system. It is automated through integration between the company’s system and the system for unifying standards for calculating the tax on wages and salaries, noting that the types of forms in the system are two types, one for the public business sector and government agencies and the other for the private sector.

The lecturers reported that the contractual status of the employee is limited to 4 cases, which are an Egyptian with a contract, a foreigner with a contract, an Egyptian without a contract, and a foreigner without a contract. They explained the types of disbursements, whether basic disbursements or additional disbursements, and how to deal with them tax-wise. The types of tax transactions were also explained on the unification system. The criteria for calculating wages and salaries are permanent workers, workers charged with a 10% lump sum tax, seconded or loaned workers, people with special needs, people with chronic diseases in accordance with Minister of Health Resolution No. 259, economic zones with a 5% lump sum tax, and people of determination in the economic zones.

The lecturers explained that the employee’s name must be written in Arabic and must consist of 4 syllables, and in the event that the employee is a foreigner, two syllables are sufficient. They also pointed out the importance of entering the employee’s national number correctly, and pointed out that the employee’s phone number is important for obtaining the employee’s data in a correct manner from the phone. Employee portal. They also answered attendees’ questions about the system, how to implement it, and solved problems resulting from the application.

It is worth noting that you can contact the Tax Authority to respond to inquiries and questions through the hotline 16395, and you can also contact the Media Unit in the Office of the Head of the Tax Authority to coordinate holding tax awareness seminars that it provides online daily through the following email:
[email protected]
Funders can also follow the department’s official website at the following link
https://www.eta.gov.eg/
As well as following all the department’s social media sites through:
The official YouTube channel of the Tax Authority
https://www.youtube.com/@tax_egypt
The official page of the department on Facebook:
https://www.facebook.com/tax.egypt
The department’s official Twitter page:
https://twitter.com/tax_egypt
The official page of the department on Instagram:
https://www.instagram.com/tax_egypt
The official page of the clinic on LinkedIn
https://www.linkedin.com/in/tax-egypt
The official page of the department on Telegram
https://t.me/egypt_tax

To report cases of tax evasion, call the hotline 16189 from nine in the morning until four in the afternoon, except on Fridays and Saturdays.