Ministry of Finance Decree No. 115 of the Year 2023 = وزارة المالية قرار رقم 115 لسنة 2023

Abstract

Article 1: In applying the provisions of article (4/2) of the Executive Regulations of the Value-Added Tax Law, referred to, the Value Added tax rate shall be (5%) on machinery and equipment, including the production lines purchased from the local market or imported from abroad, for use in the activity of producing a commodity or rendering a service, according to the following rules and procedures: Article 2: If the machinery, equipment or production lines prescribed by the first article of this decree are imported for use in the industrial production, the payment of the value-added tax due thereon shall be suspended in accordance with the provisions and rules prescribed by Article (28-Bis) of the value-added tax Law referred to, and Article (34 bis) of its executive regulations. Article 3: The value-added tax due on the machinery, equipment and production lines, that are received disassembled or in separate shipments and which the competent customs is not able - upon receiving them - to verify whether they represent a machine or equipment or production line, shall be collected at the rate of (14%). In that case the tax shall be paid as a trust amount, provided that the necessary tax settlements shall be made after the installation and inspection, by a joint committee of the Egyptian Tax Authority and the Customs Authority, to verify that what was received disassembled or in separate shipments represent a machinery or equipment or production line, and submission of a letter by the competent technical entity (the General Authority for investment – the competent governmental entity - … etc.) stating that the content of invoices previously covered by the payment of tax at the rate of 14% as a trust represents a machinery, equipment, or production line that has been installed and used in the activity of industrial production or production of a commodity (other than industrial production), or rendering a service. The tax settlements shall be made according to the following: