Egypt has allowed companies and individuals to pay their income taxes electronically, following a decree by President Abdel Fattah al-Sisi, according to a Finance Ministry statement.
Finance Minister Hany Kadry Dimian said in a statement on Wednesday that the decree provides a legal basis for an electronic payment system and allows for better management of the public debt service. “It helps decision-makers better manage the flow of tax revenues to the Treasury accounts at the Central Bank,” he said.
He said public and private sector corporations, which account for a large proportion of the tax revenues, pay in checks. “Electronic payment would shorten collection time,” he said explaining that it takes two weeks to collect a check, “whereas electronic payment is immediate.”
“The new system would later be applied to the sales tax as well,” he said, adding that electronic payment also eliminates risks, such as bounced checks or counting errors. “I asked the chairman of the Tax Authority to amend the bylaws to incorporate the new system.”
He said the new bylaws allow taxpayers a grace period to begin electronic payment.
Osama Tawakol of the Tax Authority said only a few taxpayers have started using electronic payment, while the rest still prefer checks. “This will change with time until electronic payment becomes obligatory.” he said.
