Tax accounting Introduction to Tax accounting Income Taxes

Tax accounting

Introduction to Tax accounting -Income Taxes on Natural Persons-

Income Taxes in Egypt and its Historical Development: the Tax Law No. 91 of 2005 was issued in its package of economic policies and procedures aimed at moving the economy, Through structural changes in each of the customs systems, taxation systems and financial systems of the State, with a sustainable impact on various economic sectors.

• Law 91 of 2005 is based on a number of basic points, the most important of which are:

First: mitigate the family burden: 1 - Reduction of the tax rate as this rate was reduced by about half the prices applied before the issuance of this law. 2 - Raise the exemption limit to benefit all natural persons. 3 - Simplifying the procedures for tax on small projects. 4 - Exempt projects funded by the Social Fund for a period of five years from the date of activity. 5 - Giving salaries and wages reduced treatment by increasing the exemption limits so that all employees benefit from these reductions, and also increase the personal exemption. 6 - Establish a fair and effective sanctions system, where the penalty is determined in proportion to the size of the violation and its effect on the tax Commitment

Second: the expansion of the tax base: 1 - Tax amnesty so that enterprises operating in the informal sector are allowed to integrate into the formal economy. 2 - The settlement of disputes in order to create a modified tax society within the framework of the new system that has eliminated most of the previous disputes. 3 -Eliminating exemptions and exchanging them with incentives to reduce the tax and simplify the tax bracket.

Third: simplifying the procedures: 1. Adoption of the declaration as a tax basis. 2 -A unified form for objection and Appeal. 3 - The advance payment system allows the taxpayer to choose between deduction from source or payment under the account of tax according to his discretion until settlement at the end of the tax year. 4 - It is permissible to extend the date of the declaration and it is permissible to amend it when the taxpayer fails in error or omission.

Fourth : Confidence Support Cases : 1 - Establish a Supreme Tax Council to monitor tax performance and ensure the rights of taxpayers 2 - Setting up independent neutral appeals committees to establish justice in determining tax obligations. 3 - Clearly define the rights of taxpayers by indicating the extent of the authority tax administration. 4 - Identify cases in which the burden of proof falls on the tax authority, so as not to exhaust taxpayer by providing evidence that is not legally charged. 5 - Identify the cases in which the taxpayer has the burden of proof.