Procedures for release a tax lein in 2024

Per Executive Instructions No. (10) of 2024 issued by the Head of the Tax Authority and further to Executive Instructions No. (21) and (28) of 2023 concerning the mechanisms for lifting the seizures, The Tax Authority decided to extend the implementation of Executive Instructions No. (28) of 2023, and this is to facilitate for the Financiers, and in keeping with the recent facilities provided by the Egyptian Tax Authority and to build trust between the Financiers and the Egyptian Tax Authority.

It is noteworthy that the Egyptian Tax Authority had previously issued instructions regarding the mechanism for lifting the seizure on Financiers and Registrants; Which stipulates that the Taxpayer who has a tax seizure, whether it is a movable or an attachment of the debtor’s property from a third party by the Tax Authority, may raise the seizure in the following cases:

First: Cases of Raising tax seizure

The First Case: If the Financier or Registrant commits to paying 1% of the subject to seizure.

A – If the indebtedness is based on the linkage for non-challenging the statutory date on the notification forms with the elements of the tax linkage, due to non-compliance with (Formal Conditions), such as (Form 19 Income Taxes – Form 15 Value-Added Taxes).

B- If the indebtedness is based on the linkage for non-appeal based on the notice against the prosecution (as a result of the return of tax forms as an indicator that has not been evidenced, unknown or isolated) or an announcement on the signboard as a result of the return of the tax forms as a closed indicator provided that the door to appeal is opened once again for the Financier or Registrant.

The Second Case: The Authority will lift the seizure if the financier pays 5% of the value of the seized indebtedness, provided that this seizure occurred according to the following:

1- The indebtedness must be performed upon the decision of an internal committee.

2-An Appeals Committee.

3- A Court Judgement.

4- Tax Dispute Settlement Committee.

5- A Decision of the Committee to reconsider the final linkage.

It is agreed that the remaining 95% of the outstanding debt will be paid in installments over a period of no less than two years, to ensure that the financiers do not bear additional burdens associated with delays.

Second: Deadline for Benefiting from the Decision to Lift Tax Seizure

By the aforementioned decision, financiers have been allowed to benefit from the mechanisms of lifting tax seizure until December 31, 2024.

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