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Egyptian Tax Authority implements 2nd phase of payroll tax system, promoting transparency, compliance

The Tax Authority has published the "Steps for System Integration" on its official website.

By: Mohamed Zain

Tue, May. 16, 2023

Mokhtar Tawfik, the Head of the Egyptian Tax Authority, announced the simultaneous implementation of the second phase of the unified framework and calculation standards for payroll and wage taxes. As part of this initial sub-phase, 100 entities/companies are now required to adopt the system effective from May 15, 2023.

To facilitate the integration process, the Tax Authority has published the "Steps for System Integration" on its official website, providing comprehensive guidance. Interested parties can access these steps and download the accompanying file by visiting the following: [Link].

Tawfik urges the obligated entities in the second phase (sub-phase one) to upload the "Steps for System Integration" through the Tax Authority's website. He emphasizes the importance of adhering to these steps from the mandated date of implementation.

The unified framework and calculation standards for payroll and wage taxes aim to streamline tax procedures, enhance tax compliance, and provide transparency for all government employees across various sectors. This system allows employees to access their salary details and the corresponding tax amounts based on the applicable rules. Tawfik highlights that the system promotes transparency and accountability among all stakeholders involved.

According to Minister of Finance Decree No. 175 of 2023, the second phase of the system has mandated 100 entities/companies to adopt the unified framework and calculation standards for payroll and wage taxes from May 15, 2023 (as a sub-phase one). Additionally, 200 entities/companies will be required to implement the system from June 15, 2023 (as a sub-phase two).

Detailed information, including the mandatory provisions and explanatory guides for the system, as well as registration for seminars conducted by the Tax Authority, can be accessed through the "Guide for Dealing with the Payroll and Wage Tax Calculation Unification System" at the following: [Link].

It is worth noting that the Integrated Call Center is available for inquiries at 16395. To report tax evasion cases, please contact the hotline at 16189 from 9 AM to 4 PM, excluding Fridays and Saturdays.

In a positive development for Egypt's tax system, the Egyptian Tax Authority has taken significant steps to implement the second phase of the unified framework and calculation standards for payroll and wage taxes.

This milestone reinforces the country's commitment to modernizing its tax infrastructure and enhancing tax compliance among government entities and companies.

The integration of this system is expected to streamline tax procedures, promote transparency, and improve the efficiency of payroll and wage tax calculations. By facilitating access to salary details and tax obligations, the system empowers employees and ensures a fair and transparent tax environment.