Rasha Abdel Aal, Head of the Egyptian Tax Authority (ETA), has announced that the 8th phase of the automated tax system for calculating wages and salaries tax for companies and individual establishments has been officially launched. This step is part of an ongoing effort by the Ministry of Finance and the ETA to enhance Egypt's digital tax transformation. The new system, introduced under Ministerial Decision No. 386 of 2023, applies to all companies and individual establishments with a salary obligation, effective from Sunday, December 15, 2024. Abdel Aal emphasized that the system is designed to create clear, simplified processes for registration, which companies and individual establishments must follow. To register, entities need to visit the relevant tax offices and provide the necessary documentation, including a recent commercial register extract (no older than three months) and a copy of the national ID of the managing partner or establishment owner. This will enable them to receive the necessary registration codes. The Head of the ETA also highlighted the importance of submitting accurate monthly reports detailing employee data. This is a mandatory requirement for all companies and establishments. Companies are required to submit an Excel sheet containing the full name, national ID number, mobile phone number, social insurance details, and salary information for each employee. The data must also include the insurance number, total salary, and a copy of each employee's national ID. The new system is designed to help taxpayers accurately calculate their due taxes, while also automatically generating quarterly declarations and annual settlements. Abdel Aal noted that this system will foster greater discipline, transparency, and trust between taxpayers and the Tax Authority. It also enhances compliance by making the tax process more efficient and accessible. The ETA will closely monitor the monthly declarations to ensure adherence to the new rules. Abdel Aal urged companies and establishments to fully cooperate with the tax offices and to contact the Authority for any clarifications or support. "Our goal is to make this transition as smooth as possible while ensuring accurate and timely submissions," she added. This initiative reflects the government's ongoing efforts to digitize tax procedures, improve service delivery, and create a more transparent and efficient tax system.
