What is the discount system under tax calculation ?

is a system applied in accordance with the provision of Article 59 of Law 91 of 2005

This is a sum deducted by the seller or service performer by no more than 5%. The ratios are determined in accordance with the decision of the Minister of Finance .

This ratio is deducted from any payment of more than Pound300 for (purchase , supply , contracting or service to any person in the private sector , or paid by commission or brokerage) .

This tax is paid by the buyer or service recipients on a quarterly basis no later than the end of April/October/January , via Form 41 through the website of the Egyptian tax portal .

This amount is deducted from the tax account from the tax they are owed by year-end income tax .

Deductible Obligors :

• Specific obligators , exclusively under article 59 of Act No. 91 of 2005 , are obliged to deduct when paying more than 300 pounds to persons in the private sector (subject to taxation of business and industrial revenues) and also obliged to deduct when paying more than 100 pounds to non-commercial professionals under article 70 of Act No. 91 of 2005
• Specific entities (establishments and destinations) designated by Ministerial Decree No. 535 of 2005 on article 59 , paragraph 2 , must have two conditions in which the entity may be required :
  First condition : Increase the business number from income list to 250,000EGP Second condition : Engaging in one of the following activities : Contracting , Supply , Export Offices , Commercial Agents , Travel Agencies , Facilities and Tourism Offices , Tourism Transport Facilities , Television Production Facilities , Theatre and Radio , Industrial Facilities .

The discount ratio is 1% for contracting and procurement , 3% for services , 5% for the agency and brokerage , and 2% for all discounts , grants and commissions awarded by petroleum companies , telecommunications companies , sanitary tools , electrical appliances , clothing , food goods , cleaners , and paper industries .