dr. hussien shehata

Complied By

Prof. of AccountingAl-Azhar University

بسم الله الرحمن بسم الله الرحمن الرحيمالرحيم

In the Name of Allah,In the Name of Allah, The Most Merciful,The The Most Merciful,The

Most CompassionateMost Compassionate

ContentsContents- Chapter One : Essentials of Tax - Chapter One : Essentials of Tax -Chapter Two : Essentials of -Chapter Two : Essentials of Tax Accounting Tax Accounting

-Chapter Three: Tax on Incomes from-Chapter Three: Tax on Incomes from Salaries and Like PaymentsSalaries and Like Payments- Chapter Four : Tax on Incomes fromChapter Four : Tax on Incomes from- Non-Professions. Non-Professions.

Contents- cont.Contents- cont. - Chapter Five : Tax on Incomes from Real - Chapter Five : Tax on Incomes from Real Estate PropertiesEstate Properties - Chapter Six : Cases Studies.- Chapter Six : Cases Studies.

- Chapter Seven : Tax Accounting Glossary - Chapter Seven : Tax Accounting Glossary and and

Concepts.Concepts.- Chapter Eight : Examination Models .- Chapter Eight : Examination Models .

Chapter OneChapter One

Essentials of Tax Essentials of Tax and Tax Systemsand Tax Systems

Tax DefinitionTax Definition

Tax can be defined as an amount Tax can be defined as an amount of fund deducted from Individuals, of fund deducted from Individuals,

Institutions and Like Corporations , Institutions and Like Corporations , which is transferred to Public which is transferred to Public Treasury to finance Public Treasury to finance Public Expenditures and Public Projectors Expenditures and Public Projectors for Social and Economical Welfarefor Social and Economical Welfare

Tax ConceptsTax Concepts The main concepts of Tax can beThe main concepts of Tax can be summarized as follows :summarized as follows :

(1)- Tax is a sacrifice paid to the (1)- Tax is a sacrifice paid to the Government without Government without

return or benefit. return or benefit. (2) (2) –– Tax is compulsory by the Law. Tax is compulsory by the Law.

(3) (3) –– The main Base of Tax are The main Base of Tax are : : Revenues , Incomes , Revenues , Incomes ,

Earnings Earnings Wealth Wealth of of Individuals andIndividuals and

Institutions Institutions

((4) 4) –– Tax is calculated according a set of Tax is calculated according a set of principles (Rules) which govern Its principles (Rules) which govern Its

determination , measurement determination , measurement and Disclose.and Disclose.

(5) (5) –– The main objective of Tax The main objective of Tax is to share in Social is to share in Social

and and Economical welfare.Economical welfare.

Tax ObjectivesTax Objectives 11–– Financing public expenditures and Financing public expenditures and

projects such as:projects such as: EducationEducation

health health security security

and other and other Public services and Public services and

benefits benefits

22 - Sharing in social welfare- Sharing in social welfare for people whom under the standard for people whom under the standard well-living well-living

3 3 ––Sharing in Economical GrowthSharing in Economical Growth

4 -Fair distribution of income and4 -Fair distribution of income and

wealth between peoples wealth between peoples

5-It is a tool to help government5-It is a tool to help government in designing some policies in designing some policies such as :such as :

-social well and benefits policies -social well and benefits policies -Avoiding inflation policies -Avoiding inflation policies –– Investment policies Investment policies –– Deficit in public treasury policieDeficit in public treasury policie

Characteristics of Ideal Characteristics of Ideal TaxTax They are as follows :They are as follows :

&-Equity between peoples .&-Equity between peoples .

&-Taxpayers Ability .&-Taxpayers Ability . &-Convenience to apply.&-Convenience to apply. &-Certainty and Awareness to&-Certainty and Awareness to Taxpayers.Taxpayers.

&-Flexibility to change according to &-Flexibility to change according to changes in social and economical changes in social and economical environments. environments.

&-Efficient Administration .&-Efficient Administration .

&-Commitment to Good Ethics.&-Commitment to Good Ethics.

&-Commitment to Religious Rules .&-Commitment to Religious Rules .

Taxes Classification.Taxes Classification.

- - Direct TaxesDirect Taxes : : which are which are imposed directly on individuals, Who imposed directly on individuals, Who bear its burden and cannot transfer it bear its burden and cannot transfer it to others , such asto others , such as : :

- Tax on income, - Tax on income, -Tax on revenues, -Tax on revenues, - Tax on wealth, - Tax on wealth, - Tax on capital ,- Tax on capital ,

2- Indirect Taxes :which are 2- Indirect Taxes :which are imposed indirectly on imposed indirectly on Individuals Individuals such as :such as :

- Tax on production- Tax on production - Tax on sales - Tax on sales

There are other classification of There are other classification of Taxes such as :Taxes such as :

- Tax on wealth - Tax on wealth - Tax on income- Tax on income - Tax on consumption - Tax on consumption And so onAnd so on

Tax System Tax System DefinitionDefinition

Tax system is defined as a Tax system is defined as a plan or a framework consists plan or a framework consists of a set of components of a set of components operate together to calculate operate together to calculate Due Tax on individuals and Due Tax on individuals and institutions according to Tax institutions according to Tax Laws and Rules .Laws and Rules .

Tax System Tax System ComponentsComponentsThe main Components of a Tax System The main Components of a Tax System

are as follow : are as follow : - Taxpayers ,- Taxpayers , - Tax Laws and Tax Instructions- Tax Laws and Tax Instructions - Tax Governmental Units ,- Tax Governmental Units , - Tax Justice Units ,- Tax Justice Units , - International Tax Rules - International Tax Rules and Tariffs and Tariffs

Egyptian Tax System.Egyptian Tax System. The Egyptian Tax System Framework The Egyptian Tax System Framework consists of the following Taxes :consists of the following Taxes :=Unified Tax on Individuals Income =Unified Tax on Individuals Income =Corporation Incomes Tax ,=Corporation Incomes Tax ,=Real Estate Properties Tax ,=Real Estate Properties Tax ,=Sales Tax ,=Sales Tax ,=Stamps Tax , =Stamps Tax , =Customs Duties=Customs Duties

=Tax on transfer of Properties ,=Tax on transfer of Properties ,= Other Taxes . = Other Taxes .

We will concentrate only We will concentrate only onon

The Unified Tax System on The Unified Tax System on Individuals IncomesIndividuals Incomes

Egyptian Unified Tax on Egyptian Unified Tax on Individuals Incomes Individuals Incomes

It consists of the following Taxes :It consists of the following Taxes : - Tax on Salaries and Like Payments- Tax on Salaries and Like Payments- Tax on Income from Non-Commercial - Tax on Income from Non-Commercial

Professions , Professions , - Tax on Income from Real Estate - Tax on Income from Real Estate

Property Property - Tax on Income from Commercial and - Tax on Income from Commercial and

Industrial Business , Industrial Business ,

End of chapter oneEnd of chapter one

Chapter TwoChapter Two

Essentials OfEssentials Of Tax AccountingTax Accounting

Tax Accounting Definition. Tax Accounting Definition. It is defined as a It is defined as a

science and an art science and an art concerning with calculating concerning with calculating Tax and generating Tax and generating Information to Taxpayers , to Information to Taxpayers , to Tax Authorities Units and to Tax Authorities Units and to whom it may concern for whom it may concern for making decisionsmaking decisions

Tax Accounting ObjectivesTax Accounting Objectives The main objectives of Tax The main objectives of Tax

Accounting System is to generate Tax Accounting System is to generate Tax Information concerning with the Information concerning with the following items :following items :

- Taxable Revenues ,- Taxable Revenues ,- Taxable Deductions and Allowances - Taxable Deductions and Allowances - Tax Base Tax Base - Tax Rate , - Tax Rate , - Tax Statement and Annual Report,- Tax Statement and Annual Report,- Tax Adjustments to Annual Report.- Tax Adjustments to Annual Report.

Tax Accounting Tax Accounting PrinciplesPrinciples Tax Accounting Principles Tax Accounting Principles

are as follows :are as follows :

- - Tax PeriodTax Period: it means that the : it means that the Tax Statement is prepared about Tax Statement is prepared about a certain period which is called : a certain period which is called : Tax Interval Period. Tax Interval Period.

–– Objectivity : it means that Objectivity : it means that Tax must be based onTax must be based on

verifiable evidence as verifiable evidence as possible, judgmental possible, judgmental measures and standards.measures and standards.

–– Objectivity : it means that Objectivity : it means that Tax Due must be based onTax Due must be based on

verifiable evidence as verifiable evidence as possiblepossible’’ judgmental judgmental measures and standards.measures and standards.

–– ConsistencyConsistency between between periods for the same entity : periods for the same entity : it means that , the enterprise it means that , the enterprise must apply the same must apply the same accounting principles , accounting principles , policies and methods for policies and methods for measuring Due Tax to make measuring Due Tax to make comparison meaningful .comparison meaningful .

–– Monetary ValuesMonetary Values : it : it refers to using money as a refers to using money as a unit of measure of Due Tax unit of measure of Due Tax ignoring Changes in its ignoring Changes in its general purchasing power .general purchasing power .

- - Continuity or Continuity or going Concern going Concern: :

it means that everyit means that every enterprise should be viewed enterprise should be viewed

as remaining in operations for as remaining in operations for measuring Due Tax.measuring Due Tax.

Disclosure Disclosure : it means : it means that Tax Statements that Tax Statements should disclose which is should disclose which is necessary to make Due Tax necessary to make Due Tax clear and not misleading .clear and not misleading .

Tax Accounting ValuesTax Accounting Values

In addition to the previous In addition to the previous principles ,there are other Valuesprinciples ,there are other Values

such as : such as : - Ethical Values ,- Ethical Values , - Behavioral Values ,- Behavioral Values , - Religious Values- Religious Values . .

Tax Accounting Tax Accounting Procedures.Procedures. They are as FollowThey are as Follow : :

1-Collecting data about Individuals business Transactions.

2-Recording data in Books and Records

3-Classifying data.

4-Analyzing data according to Tax Laws..

5- Preparing the Financial 5- Preparing the Financial

Statements according Statements according to Tax Laws. to Tax Laws.

6- Preparing the Annual Tax 6- Preparing the Annual Tax Statement according to Tax Statement according to Tax Laws Laws and Instructions. and Instructions.

7- Preparing the Annual Tax 7- Preparing the Annual Tax Declaration ( Tax Report ). Declaration ( Tax Report ).

Tax Accounting Information Tax Accounting Information Users.Users.

They are as followThey are as follow : : - Taxpayers - Taxpayers - Individuals- Individuals- Institutions- Institutions- Corporations - Corporations - Establishments - Establishments - C. Accountants - C. Accountants and Othersand Others

Tax Authorities UsersTax Authorities Users Tax Authorities Users are as followTax Authorities Users are as follow : : Tax Inspector ,Tax Inspector ,Tax Investigator ,Tax Investigator ,Tax Auditor ,Tax Auditor ,Tax Competent ,Tax Competent ,Tax Interior Committee , Tax Interior Committee , Tax Appeal Committee ,Tax Appeal Committee ,Tax Court Council ,Tax Court Council ,Governmental Units Governmental Units Other Taxation EstablishmentsOther Taxation Establishments

* Tax Calculating * Tax Calculating ElementsElements

Tax calculation Elements are:Tax calculation Elements are: Taxable Revenues or Incomes,Taxable Revenues or Incomes,Taxable Deductions ,Taxable Deductions ,Taxable Allowances ,Taxable Allowances ,Tax Rate,Tax Rate,Tax Due ,Tax Due ,Pre-paid Tax,Pre-paid Tax,Tax Due to be paidTax Due to be paid

Tax Calculation Tax Calculation EquationsEquations

Tax Calculation EquationsTax Calculation Equations areare : :

1 - Net Taxable Revenue = Tax Base =1 - Net Taxable Revenue = Tax Base = Total Taxable Revenues Less Total Taxable Revenues Less ( Taxable Deductions)( Taxable Deductions) ( Taxable Allowances )( Taxable Allowances )2-Tax Due= Net Taxable Revenue ( Tax Base) 2-Tax Due= Net Taxable Revenue ( Tax Base) ×× Tax RateTax Rate3- Tax Due to be Paid= Tax Due Less 3- Tax Due to be Paid= Tax Due Less

Pre-paid Tax. Pre-paid Tax.

Tax Statement Tax Statement FormForm

Tax StatementTax Statement for Al-Rebatt Company (JSEC)for Al-Rebatt Company (JSEC) For the year For the year …….. ended .. ended

Taxpayer Name :Taxpayer Name :Tax File No :Tax File No :Tax Card No :Tax Card No :

Tax StatementTax StatementTaxable Revenues 200 000Taxable Revenues 200 000Less : Taxable Deduction 50000 Less : Taxable Deduction 50000 Less; Taxable Allowances: 20000Less; Taxable Allowances: 20000 Less : Family Allowance 10000Less : Family Allowance 10000 ------- 80000------- 80000 --------- --------- Net Tax Base 120000Net Tax Base 120000 Revenue Tax Rate 20 %Revenue Tax Rate 20 %Tax Due= 120 000 × 20% =24 000Tax Due= 120 000 × 20% =24 000Less : Prepaid Tax = 10 000Less : Prepaid Tax = 10 000Net Tax Due = 14 000Net Tax Due = 14 000

End of chapter TwoEnd of chapter Two

Chapter ThreeChapter Three

Tax on Salaries and Tax on Salaries and Like PaymentsLike Payments

Definition of Tax on Definition of Tax on Salaries.Salaries. It is a direct Tax imposed on It is a direct Tax imposed on

Incomes from Salaries , Wages , Incomes from Salaries , Wages , Remunerations , Annuities Remunerations , Annuities ………………

..and Like Payments , paid to any ..and Like Payments , paid to any person residing in Egypt orperson residing in Egypt or

Abroad for work rendered in Abroad for work rendered in Egypt .Egypt .

Characteristics of Tax Characteristics of Tax on Salaries.on Salaries.

The main Characteristics of The main Characteristics of this Tax are :this Tax are :

1=It is a direct Tax imposed1=It is a direct Tax imposed on real persons incomes , on real persons incomes , for work rendered in for work rendered in Egypt . Egypt .

2=It is imposed on Egyptian 2=It is imposed on Egyptian Residents from Incomes Residents from Incomes derived from derived from Egypt ,and on Egypt ,and on Non- Non- Egyptian Residents Egyptian Residents from Incomes derived from from Incomes derived from Egypt .Egypt .

3=These Incomes should be 3=These Incomes should be reality available for the reality available for the beneficiary ( The Receiverbeneficiary ( The Receiver ) )

4=The Tax Rate is4=The Tax Rate is Progressive , Progressive , means It is an means It is an increasing increasing percentage as value of the Tax percentage as value of the Tax Base Base rises .rises .

5=This Tax considers 5=This Tax considers family Allowances and family Allowances and personal Charges .personal Charges .

Determination of Determination of Taxable Incomes of Taxable Incomes of

SalariesSalaries

This Tax is imposed on This Tax is imposed on the following Incomes :the following Incomes :

1- Salaries , Wages , 1- Salaries , Wages , Remunerations, Compensations Remunerations, Compensations Bonuses , Annuities , and Like Bonuses , Annuities , and Like Payments paid by Private Payments paid by Private Sector to any person residing Sector to any person residing in Egypt or Abroad for services in Egypt or Abroad for services rendered in Egypt .rendered in Egypt .

2- Salaries , Wages , 2- Salaries , Wages , Remunerations, Compensations Remunerations, Compensations Bonuses , Annuities , and Like Bonuses , Annuities , and Like Payments paid by Private Payments paid by Private Sector to any person residing Sector to any person residing in Egypt or Abroad for services in Egypt or Abroad for services rendered in Egypt .rendered in Egypt .

3- 3- Salaries , , Salaries , , Remunerations and Like Remunerations and Like Payments paid to Payments paid to Presidents and Members of Presidents and Members of Directors of Public Sector Directors of Public Sector Corporations.Corporations.

4- Salaries , , Remunerations 4- Salaries , , Remunerations and Like Payments paid to and Like Payments paid to Presidents and Members of Presidents and Members of Board of Directors other than Board of Directors other than Stockholders in Public Sector Stockholders in Public Sector Corporations this Payments is Corporations this Payments is made for Administrative Work.made for Administrative Work.

5- Amount paid to Foreign 5- Amount paid to Foreign Experts working for any Experts working for any agency ,quarter ,or authority agency ,quarter ,or authority for services rendered in for services rendered in Egypt providing the period Egypt providing the period of their employment does not of their employment does not exceed 183 days per yearexceed 183 days per year

6- Cash Benefits that are 6- Cash Benefits that are Taxable Taxable such as :such as :

- Nature of work Allowance . - Nature of work Allowance . - Representation or Reception - Representation or Reception

Allowance . Allowance .- Production Incentives .- Production Incentives .

Cash Benefits not Cash Benefits not TaxableTaxable Cash Benefits that are not Cash Benefits that are not

Taxable : such as Taxable : such as - Special Raises,- Special Raises, - Travel Allowances ,- Travel Allowances , - Transportation Allowances - Transportation Allowances - Housing Allowances- Housing Allowances - Clothing Allowances - Clothing Allowances - - ………….and Like ..and Like .

Taxable Fringe Taxable Fringe BenefitsBenefits Fringe Benefits to be taxed Fringe Benefits to be taxed

must be granted for Free or must be granted for Free or against charges that do not against charges that do not cover the cost paid by the cover the cost paid by the employer . employer .

If the Fringe Benefits, If the Fringe Benefits, because of the nature of the because of the nature of the

workwork’’ they are not taxed . they are not taxed .

Deductible Amounts from Deductible Amounts from Taxable Incomes of Salaries .Taxable Incomes of Salaries .

( 1 ) ( 1 ) –– Social insurance subscriptions Social insurance subscriptions and saving Premiums and saving Premiums

( 2 ) ( 2 ) –– Subscriptions in Subscriptions in special special insurance funds. insurance funds. ( 3 ) ( 3 ) –– Life insurance premiums . Life insurance premiums .( 4 ) ( 4 ) –– Life annuity revenues . Life annuity revenues .( 5 ) ( 5 ) –– Proportional stamp Tax . Proportional stamp Tax .( 6 ) ( 6 ) –– Family allowance . Family allowance .

Family Allowance of Family Allowance of Tax Salaries.Tax Salaries.

The Family Allowance The Family Allowance is deducted from the is deducted from the Taxable Incomes is L.E. Taxable Incomes is L.E. 5000 per year5000 per year

Regardless to the social Regardless to the social state of the Taxpayer.state of the Taxpayer.

Tax Rate on Salaries.Tax Rate on Salaries. = More than L.E. 5000 up to 20000 = More than L.E. 5000 up to 20000

Tax Rate 10%Tax Rate 10% = More than L.E.20000 up to 40000 = More than L.E.20000 up to 40000

Tax Rate 15%Tax Rate 15% = Above L.E. 40000 = Above L.E. 40000

Tax Rate 20%Tax Rate 20%

Foreign Experts Incomes Foreign Experts Incomes Tax RateTax Rate

Foreign ExpertsForeign Experts whom are whom are subject to Tax on Salaries and subject to Tax on Salaries and other Like Payments :The Rate other Like Payments :The Rate of Tax is 10%of Tax is 10%

on the total amount they on the total amount they receive without any receive without any Deductions or Family Allowance.Deductions or Family Allowance.

Calculating Procedures of Calculating Procedures of Tax Tax

On Salaries . On Salaries .( 1 ) ( 1 ) –– Determine the Total Determine the Total monthly Income andmonthly Income and

Convert it intoConvert it into annual annual Income by Income by Multiplying it by 12 ,Multiplying it by 12 ,

( 2 ) ( 2 ) –– Deduct Exemptions Deduct Exemptions and Allowances from and Allowances from the total Incomes to reachthe total Incomes to reach to the Tax Base,to the Tax Base, and distribute it into slidesand distribute it into slides

( 3 ) ( 3 ) –– Determine the Tax Rate for Determine the Tax Rate for each amount ( slide ) , each amount ( slide ) ,

( 4 ) ( 4 ) –– Calculate the Due Tax on Calculate the Due Tax on the Tax Base by the Tax Base by MultiplyingMultiplying

each amount by each rate .each amount by each rate .

( 5 ) ( 5 ) –– The Taxes calculated The Taxes calculated above is for one year above is for one year

Shall be divided by 12Shall be divided by 12 toto reach the reach the monthly \ monthly \ Due Tax .Due Tax .

End of the ProceduresEnd of the Procedures

Tax StatementTax Statementon Salaries and Like on Salaries and Like

PaymentsPayments$- Taxable Incomes$- Taxable Incomes Basic Annual SalaryBasic Annual Salary × ××× × ××× Variables wagesVariables wages…….. ×××× ×××× Total IncomesTotal Incomes --------- 100000--------- 100000$- Deductions$- Deductions Social insuranceSocial insurance ×××× ×××× Allowances , Incentives Allowances , Incentives …….. ×× ×× Social Security Premiums Social Security Premiums …………. . Total Deductions --------- 80 000 Total Deductions --------- 80 000 $ Net Income before Family Allowance 20000 $ Net Income before Family Allowance 20000 $ - Less Family Allowance 5000$ - Less Family Allowance 5000 $ - Taxable Income ( Tax Base ) 15000 $ - Taxable Income ( Tax Base ) 15000 $- Tax Rate 10%$- Tax Rate 10%$ - Due Tax = 15000 ×10% = 1500$ - Due Tax = 15000 ×10% = 1500

End of Chapter ThreeEnd of Chapter Three

Chapter FourChapter Four

Tax on Incomes from Non -Tax on Incomes from Non -Commercial Professions Commercial Professions

Definition of Tax ofDefinition of Tax of Incomes from Incomes from Non-Non-

Commercial Professions Commercial Professions..

It is a direct Tax on It is a direct Tax on Incomes generated from Incomes generated from Non- Commercial Non- Commercial Activities Professions Activities Professions which the Labor is the which the Labor is the principle element .principle element .

* Characteristics* Characteristics -It is a direct Tax .-It is a direct Tax . -It is applied for Incomes from -It is applied for Incomes from

independent Non- Commercial independent Non- Commercial Professions.Professions.

-It is imposed on Incomes -It is imposed on Incomes realized in Egypt by Egyptian realized in Egypt by Egyptian Citizens or Foreigners.Citizens or Foreigners.

- Incomes realized outside Egypt - Incomes realized outside Egypt are not Taxable.are not Taxable.

Conditions and Conditions and TermsTerms ( 1 ) ( 1 ) –– Practicing the Profession Practicing the Profession

Independently . Independently . ( 2 ) - The Labor is the main Element ( 2 ) - The Labor is the main Element

In practicing the Profession . In practicing the Profession . ( 3 ) - Practicing the Profession ( 3 ) - Practicing the Profession

Traditionally Continually Traditionally Continually

( 4 ) - Practicing the Profession in ( 4 ) - Practicing the Profession in Egypt . Egypt .

Determination of Taxable Determination of Taxable Incomes from professionsIncomes from professions This Tax shall apply to the This Tax shall apply to the

following following Incomes :Incomes : (1 - ) Incomes from practicing

The profession Independently .

( 2 ) - Incomes from capital ( 2 ) - Incomes from capital profits from selling Assets profits from selling Assets using using in practicing in the in practicing in the profession profession

( 3 ) - Incomes from Consultations ( 3 ) - Incomes from Consultations and Expertise and the and Expertise and the Like. Like.

( 4 ) - Incomes from transferring( 4 ) - Incomes from transferring Skills to others .Skills to others .

( 5 ) - Incomes from ( 5 ) - Incomes from Professional Training.Professional Training.

( 6 ) - Any Incomes from ( 6 ) - Any Incomes from Professions not Professions not mentioned mentioned

In the Article No. (33 ) In the Article No. (33 )

All Costs and Expenses related All Costs and Expenses related with practicing the Professionswith practicing the Professions such :such :

Deductible and Allowances Deductible and Allowances of Taxable Incomes of Taxable Incomes fromProfessionsfromProfessions

-Wages & Salaries.-Wages & Salaries. -Stationery and Publications -Stationery and Publications ..

-Travel and Transport .-Travel and Transport .-Cares Expenses .-Cares Expenses .-Maintenance & Repairs .-Maintenance & Repairs .

-Subscriptions of practicing the -Subscriptions of practicing the profession. profession.

-Taxes except Tax on N0n- -Taxes except Tax on N0n- Commercial profession.Commercial profession.

-Governmental Fees .-Governmental Fees .-Social Insurance subscriptions.--Social Insurance subscriptions.--Life insurance premiums.--Life insurance premiums.-

--Gifts to Governmental Units in Gifts to Governmental Units in range of net annual income. range of net annual income.

- Gifts and Charities to Social - Gifts and Charities to Social Societies in range of 10% of net Societies in range of 10% of net annual Income .annual Income .

-Other Expenses according to the -Other Expenses according to the nature of the nature of the

-Profession and not mentioned-Profession and not mentioned in this Law .. in this Law ..

The Tax Legislator has Exempted from The Tax Legislator has Exempted from this Tax the following Incomes ; this Tax the following Incomes ;

( 1 ) - Educational Establishments under ( 1 ) - Educational Establishments under the supervision Of thethe supervision Of the Government.Government.

( 2 ) - Authoring and Translating ( 2 ) - Authoring and Translating books, Magazines, And so on, books, Magazines, And so on,

Exemptions From The TaxExemptions From The Tax

( 3 ) - Universities and Colleges ( 3 ) - Universities and Colleges and and Like Staff from Like Staff from there there Incomes Incomes from from Authoring Authoring Books Books and Publications .and Publications .

( 4 ) - Members of Art Union .( 4 ) - Members of Art Union .( 5 ) ( 5 ) –– Members of Profession Members of Profession

Trade Unions for three Trade Unions for three Years Years

Tax Rate on Incomes Tax Rate on Incomes from Non- Commercial from Non- Commercial Professions Professions = Family Allowance 5000= Family Allowance 5000 = More than L.E. 5000 up to = More than L.E. 5000 up to 20000 20000

Tax Rate 10% Tax Rate 10% = More than L.E.20000 up to 40000 = More than L.E.20000 up to 40000

Tax Rate 15% Tax Rate 15% = Above L.E. 40000 = Above L.E. 40000

Tax Rate 20%Tax Rate 20%

Calculating Procedures of Tax on Incomes Calculating Procedures of Tax on Incomes from Non-Commercial Professions from Non-Commercial Professions ( 1 ) ( 1 ) –– Determine the Total Annual Determine the Total Annual

ProfessionsProfessions Incomes ,Incomes ,

( 2 ) ( 2 ) –– Deduct : Costs, Expenses Deduct : Costs, Expenses and Allowances from the and Allowances from the total Incomes . total Incomes .

This is the This is the Tax Base, and distribute it Tax Base, and distribute it into slides ,into slides ,

( 3 ) ( 3 ) –– Determine the Tax Rate Determine the Tax Rate for for each amount . each amount .

( 4 ) ( 4 ) –– Calculate the Due Tax on Calculate the Due Tax on the Base by Multiplying \the Base by Multiplying \

each each amount by each amount by each Rate . Rate .

( 5 ) ( 5 ) –– The Tax calculated The Tax calculated above is the Due Tax, above is the Due Tax, deduct deduct from from it the it the pre-paid Tax pre-paid Tax during during the year to reach the year to reach to to tax should be paid .tax should be paid .

Tax Statement For Tax Statement For ProfessionsProfessions

Tax statementTax statementOn Incomes from Non-Commercial ProfessionsOn Incomes from Non-Commercial Professions

/ / // / /-------------------------------------------------------------------------------------------------------------------------------------------------------- Items of Tax Amount AmountItems of Tax Amount Amount---------------------------------------------------------------------------- ---------------------------------------------------------------------------- $- Taxable Incomes$- Taxable Incomes ………………………… Total Incomes --------- 100000Total Incomes --------- 100000$- Less : Costs and Expenses $- Less : Costs and Expenses ……………… Total Deductions --------- 80 000 Total Deductions --------- 80 000 $ Net Income before Family Allowance 20000 $ Net Income before Family Allowance 20000 $ - Family Allowance 5000 $ - Family Allowance 5000 $ - Taxable Income ( Tax Base ) 15000 $ - Taxable Income ( Tax Base ) 15000 $- Tax Rate 10%$- Tax Rate 10%$ - Due Tax = 15000 ×10% = 1500$ - Due Tax = 15000 ×10% = 1500

•End of the ChapterEnd of the Chapter

Chapter FiveChapter Five

•Tax on Incomes from Tax on Incomes from Real Estate Property.Real Estate Property.

Definition of Tax on Incomes Definition of Tax on Incomes fromfrom

Real Estate Property Real Estate Property It is a direct Tax on It is a direct Tax on Incomes generated from Incomes generated from Leas Leas ––able Land and able Land and Buildings Properties Buildings Properties imposed according the imposed according the Egyptian Laws.Egyptian Laws.

Characteristics of TCharacteristics of T ax on Incomes ax on Incomes fromfrom

Real Estate Property Real Estate Property . . The main features of this Tax The main features of this Tax

as as follow :follow :

• It is a direct Tax .It is a direct Tax .

• It is applied on Incomes from Leas-able It is applied on Incomes from Leas-able Real Estate Properties .Real Estate Properties .

• It is imposed on Incomes realized It is imposed on Incomes realized in Egypt by Egyptian Citizens in Egypt by Egyptian Citizens or by Foreigners .or by Foreigners .

• It considers Family Allowance It considers Family Allowance and pre-paid Tax, and Tax on and pre-paid Tax, and Tax on the same Building .the same Building .

Determination of Taxable Determination of Taxable Incomes from Real Estate Incomes from Real Estate Property.Property. • This Tax is imposed on the This Tax is imposed on the

following Incomes : following Incomes : • (1) (1) –– Actual Incomes from Leas- Actual Incomes from Leas-

ableable Buildings , Less :Buildings , Less :• 50% for Costs and 50% for Costs and

Expenditures, Expenditures, • Less: Pre-paid Tax according Less: Pre-paid Tax according

to to the Law No. (82) / 2005 .the Law No. (82) / 2005 .

• ( 2 ) ( 2 ) –– Actual Incomes from Leas- Actual Incomes from Leas-able Furniture Property according able Furniture Property according to the Article No. (40 ) to the Article No. (40 ) from the from the Law No. (91)/ Law No. (91)/ 2005, Less: 50 2005, Less: 50 % for Costs % for Costs and Expenses and and Expenses and Less: Pre-paid Tax of Less: Pre-paid Tax of

Property Fees .Property Fees . Less : Family Allowance .Less : Family Allowance .

Deductible and Allowances of Deductible and Allowances of Taxable Incomes from Real Estate Taxable Incomes from Real Estate PropertyProperty.. The main items should be The main items should be

deducted are as follow :deducted are as follow :• 50 % for Costs and Expenses .50 % for Costs and Expenses .• Pre-paid Tax and Fees for the Pre-paid Tax and Fees for the

same Property .same Property .• Family Allowance if it is not Family Allowance if it is not

deducted from any Taxable deducted from any Taxable Incomes beforeIncomes before . .

Rate of Tax on Incomes Rate of Tax on Incomes from Real Estate Property.from Real Estate Property. The Rate of Tax are as follow :The Rate of Tax are as follow : • = Family Allowance = Family Allowance

L.E. 5000L.E. 5000 • = More than L.E. 5000 up to 20000 = More than L.E. 5000 up to 20000

Tax Rate 10%Tax Rate 10%• = More than L.E.20000 up to 40000 = More than L.E.20000 up to 40000

Tax Rate 15%Tax Rate 15%• = Above L.E. 40000 = Above L.E. 40000

• Tax Rate 20%Tax Rate 20%

Calculating Procedures of Tax on Calculating Procedures of Tax on Incomes from Real Estate Incomes from Real Estate PropertyProperty.. This Tax is calculated as follow:This Tax is calculated as follow: • ( 1 ) ( 1 ) –– Determine the actual Income Determine the actual Income

during the year from Real during the year from Real Estate Property.Estate Property.

• ( 2 ) ( 2 ) –– Deduct 50 % for Costs Deduct 50 % for Costs and and Expenses .Expenses .

• ( 3 ) - Deduct Family Allowance if( 3 ) - Deduct Family Allowance if• itit is not is not deducted from deducted from

another another Income to reach Income to reach • to to the Tax the Tax Base .Base .

• ( 4 ) ( 4 ) –– Calculate the Due Tax according Calculate the Due Tax according• to the previous steps by multiplying to the previous steps by multiplying

the Tax Base by Tax Rate .the Tax Base by Tax Rate .

• (5 )- Deduct the actual Property FEES (5 )- Deduct the actual Property FEES paid during the Year to reach to paid during the Year to reach to

• thethe net Tax on Real Estate Property .net Tax on Real Estate Property .

Tax statement On Incomes from Tax statement On Incomes from Real Estate PropertyReal Estate Property

• Items of Tax Amount AmountItems of Tax Amount Amount• -------------------------------------------------------------------------- -------------------------------------------------------------------------- • $- Taxable Incomes$- Taxable Incomes• • Total Incomes --------- 50000Total Incomes --------- 50000• Less : 50% For Costs and Expenses. Less : 50% For Costs and Expenses. • Total Deductions --------- 25000Total Deductions --------- 25000• --------------• $ Net Income before Family Allowance 25000 $ Net Income before Family Allowance 25000 • $ - Family Allowance 5000 $ - Family Allowance 5000 • --------------• $ - Taxable Income ( Tax Base ) 20000 $ - Taxable Income ( Tax Base ) 20000 • $- Tax Rate 10%$- Tax Rate 10%• $ - Due Tax = 15000 ×10% = 1500$ - Due Tax = 15000 ×10% = 1500• = 5000 × 15% = 750= 5000 × 15% = 750• --------------• 22502250• $- Less: Paid Fees 2000$- Less: Paid Fees 2000• ------------------• Net Tax should Paid 250Net Tax should Paid 250• ------------------

Chapter SixChapter Six

Tax Accounting Tax Accounting Glossary & ConceptsGlossary & Concepts

Tax Accounting Glossary & Tax Accounting Glossary & ConceptsConcepts

• Tax GlossaryTax Glossary

• Tax Systems Tax Systems Concepts Concepts

• Tax Accounting Tax Accounting ConceptsConcepts

مصطلحات مصطلحات • الضريبةالضريبة

النظم • النظم مفاهيم مفاهيمالضريبيةالضريبية

مفاهيم مفاهيم •المحاسبة المحاسبة الضريبيةالضريبية


• Tax Tax • Tax BooksTax Books• Tax Accountant Tax Accountant • Tax Records Tax Records • Tax CodeTax Code• Tax Reports Tax Reports • Tax Forms Tax Forms • Tax DeductionsTax Deductions

الضريبةالضريبة•الضريبية • الضريبية الدفاتر الدفاترالمحاسب المحاسب •

الضريبىالضريبىالضريبة • الضريبة سجالت سجالتالضريبة • الضريبة دليل دليلاالقرارات االقرارات •

الضريبيةالضريبيةالضرائب • الضرائب نماذج نماذجالخصومات الخصومات •

الضريبيةالضريبية


• Tax Due Tax Due • Tax Exemptions Tax Exemptions • Tax AvoidanceTax Avoidance• Tax Rates Tax Rates • Tax Law Tax Law • Tax ReconciliationTax Reconciliation • Tax LiabilityTax Liability

الضريبة الضريبة •المستحقة المستحقة

االعفاءات االعفاءات •الضريبيةالضريبية

الضريبة • الضريبة تجنب تجنبالضريبة • الضريبة معدالت معدالتالضرائب • الضرائب قانون قانونالضريبة • الضريبة إلغاء إلغاء

االلتزامات االلتزامات •

الضريبيةالضريبية


• Tax CollectionTax Collection• Tax Authority UnitTax Authority Unit• Tax ReceiptsTax Receipts• Tax Family allowanceTax Family allowance• Tax PayerTax Payer• Tax EvadersTax Evaders• Tax Annual DeclarationTax Annual Declaration• Tax AssessmentTax Assessment

الضريبة • الضريبة تحصيل تحصيلالضرائب • الضرائب مصلحة مصلحةالضريبة • الضريبة حصيلة حصيلةلألعباء • لألعباء اإلعفاء اإلعفاء

العائليةالعائليةدافع – • دافع – الممول الممول

الضريبةالضريبةمن • من المتهرب المتهرب

الضريبةالضريبةالضريبى • الضريبى االقرار االقرار

السنوىالسنوىالضريبة • الضريبة تقدير تقدير


• Tax Authority UnitTax Authority Unit• Tax Authority Tax Authority

AgentAgent• Tax Memo randomTax Memo random• Tax Competent Tax Competent AuthorityAuthority• Tax Appeal Tax Appeal CommitteeCommittee• Tax Interior Tax Interior

CommitteeCommittee

الضرائب • الضرائب مصلحة مصلحةالضرائب • الضرائب مصلحة مصلحةعلى • إعتراض على مذكرة إعتراض مذكرة

الضريبةالضريبةفى • النظر فى مصلحة النظر مصلحة

الضريبية الضريبية التظلمات التظلماتالطعن • الطعن لجنة لجنةداخلية • ضرائب داخلية لجنة ضرائب لجنة


• Tax CardTax Card• Tax FileTax File• Tax PeriodTax Period• Tax IndexTax Index• Tax StandardsTax Standards• Tax BaseTax Base• Tax Laws ArticlesTax Laws Articles• UntaxedUntaxed

ضريبية • ضريبية بطاقة بطاقةضريبى • ضريبى ملف ملفالضرائبية • الضرائبية الفترة الفترةالضريبى • الضريبى المؤشر المؤشرالضريبة • الضريبة معايير معاييرالضريبى • الضريبى األساس األساسالقوانين • القوانين مواد مواد

الضريبىالضريبىالضريبة • من الضريبة معفى من معفى


• Free TaxFree Tax• Free DutyFree Duty• Pre-paid TaxPre-paid Tax• Fore ward TaxFore ward Tax

الضريبة • من الضريبة معفى من معفىالرسوم • من الرسوم معفى من معفى

الجمركيةالجمركيةمدفوعة • مدفوعة ضريبة ضريبة

مقدمامقدمامدفوعة • مدفوعة ضريبة ضريبة

مقدمامقدما


• Taxable Taxable • Taxable BaseTaxable Base• Taxable IncomeTaxable Income• Taxable RateTaxable Rate• Taxable Taxable

RevenuesRevenues• Taxable FileTaxable File

صفة ) (• صفة ) (ضريبى ضريبىالضريبى • الضريبى الوعاء الوعاءالضريبى • الضريبى الدخل الدخلالضريبى • الضريبى المعدل المعدلالضريبية • الضريبية االيرادات االيراداتالضريبى • الضريبى الملف الملف


• Taxable CardTaxable Card• Taxable Taxable

DeductionsDeductions• Taxable Taxable

AllowancesAllowances• Taxable IndexTaxable Index• Taxable Net Taxable Net

RevenueRevenue

الضريبية • الضريبية البطاقة البطاقة

الخصومات الخصومات •الضريبيةالضريبية

المسموحات المسموحات •الضريبيةالضريبية

الضريبى • الضريبى المؤشر المؤشرالدخل • الدخل صافى صافى

الضريبىالضريبى


• Tax SystemTax System• Tax System Tax System

ComponentsComponents• Tax System PartsTax System Parts• Tax System UnitsTax System Units• Tax on Income SystemTax on Income System• Tax on Revenues Tax on Revenues

SystemSystem• Tax System on Tax System on

Revenues from Revenues from Movable CapitalMovable Capital

الضريبة • الضريبة نظام نظامالنظام • النظام عناصر عناصر

الضريبىالضريبىالنظام • النظام أجزاء أجزاء

الضريبىالضريبىالنظام • النظام وحدات وحدات

الضريبىالضريبىعلى • الضريبة على نظام الضريبة نظام

الدخلالدخلعلى • الضريبة على نظام الضريبة نظام

االيراداتااليراداتعلى • الضريبة على نظام الضريبة نظام

القيم القيم إيرادات إيراداتالمنقولةالمنقولة


• Tax on Consumption Tax on Consumption SystemSystem

• Tax on Capital Tax on Capital SystemSystem

• Tax on Wealth Tax on Wealth SystemSystem

• Tax on Production Tax on Production SystemSystem

• Tax on Sales Tax on Sales SystemSystem

الضرائب • الضرائب نظام نظاماالستهالك االستهالك على على

الضرائب • الضرائب نظام نظامالمال رأس المال على رأس على

الضرائب • الضرائب نظام نظامالثروة الثروة على على

الضرائب • الضرائب نظام نظاماالنتاج االنتاج على على

الضريبة • الضريبة نظام نظامالمبيعات المبيعات على على


• Tax on Salaries Tax on Salaries SystemSystem

• Tax on Transfer Real Tax on Transfer Real Estate Properties Estate Properties System System

• Tax on Revenues Tax on Revenues From Real Properties From Real Properties System EstateSystem Estate

• Tax on Revenues from Tax on Revenues from Non-Professional Non-Professional Activities systemActivities system

على • الضريبة على نظام الضريبة نظامالمرتباتالمرتبات

على • الضريبة على نظام الضريبة نظامالعقارات ملكية العقارات نقل ملكية نقل

الضريبة • الضريبة نظام نظامإيرادات إيرادات على على

العقاراتالعقاراتالضريبة • الضريبة نظام نظام

إيرادات إيرادات على علىالحرة الحرة المهن المهن


•Direct Taxes Direct Taxes System System

• Indirect Taxes Indirect Taxes SystemSystem

•Unified Tax Unified Tax SystemSystem

•Stamp Tax Stamp Tax SystemSystem

الضرائب • الضرائب نظام نظامالمباشرةالمباشرة

الضرائب • الضرائب نظام نظامالمباشرة المباشرة غير غير

الضريبة • الضريبة نظام نظامالموحدةالموحدة

ضريبة • ضريبة نظام نظامالدمغةالدمغة


• Tax AccountantTax Accountant• Tax Accounting Tax Accounting

BooksBooks• Tax Accounting Tax Accounting

RecordsRecords• Tax Accounting Tax Accounting

ConceptsConcepts• Tax Accounting Tax Accounting

ReportsReports

ضريبي • ضريبي محاسب محاسبالمحاسبية • المحاسبية الدفاتر الدفاتر

الضريبيةالضريبيةالسجالت السجالت •

المحاسبية المحاسبية الضريبيةالضريبية

المحاسبة • المحاسبة مفاهيم مفاهيمالضريبيةالضريبية

المحاسبية • المحاسبية تقارير تقاريرالضريبية الضريبية


• Tax Accounting Tax Accounting ReportsReports

• Tax Accounting Tax Accounting PrinciplesPrinciples

• Tax Accounting Tax Accounting ProceduresProcedures

المحاسبية • المحاسبية تقارير تقاريرالضريبية الضريبية

المحاسبة • المحاسبة مبادئ مبادئالضريبيةالضريبية

المحاسبة • المحاسبة إجراءات إجراءاتالضريبيةالضريبية


• Tax Accounting Tax Accounting SchedulesSchedules

• Tax Accounting Tax Accounting formsforms

• Tax Accounting Tax Accounting operationsoperations

• Tax Accounting Tax Accounting TechniquesTechniques

• Tax Accounting Tax Accounting MethodsMethods

المحاسبة • المحاسبة جداول جداولالضريبيةالضريبية

المحاسبة • المحاسبة نماذج نماذجالضريبيةالضريبية

المحاسبة • المحاسبة عمليات عملياتالضريبيةالضريبية

المحاسبة • المحاسبة أساليب أساليبالضريبيةالضريبية

المحاسبة • المحاسبة طرق طرقالضريبيةالضريبية


• Tax InvestigationsTax Investigations• Tax AppraisalTax Appraisal• Tax DeterminationTax Determination• Tax AssessmentTax Assessment• Tax MeasurementTax Measurement• Tax ReductionTax Reduction• Tax DeclarationTax Declaration• Tax DecisionsTax Decisions

ضريبى • ضريبى فحص فحصتقدير / • تقدير / تقييم تقييم

الضريبةالضريبةالضريبة • الضريبة تحديد تحديدالضريبة • الضريبة تقدير تقديرالضريبة • الضريبة قياس قياسالضريبة • الضريبة تخفيض تخفيضالضريبى • الضريبى االفصاح االفصاحالحكمى • الحكمى التقدير التقدير

للضريبةللضريبة


• Tax Subjective Tax Subjective EvaluationEvaluation

• Tax JudgmentTax Judgment• Tax ObjectionTax Objection

• Tax Declaration Tax Declaration AdjustmentsAdjustments

• Tax AllowancesTax Allowances• Tax AuditorTax Auditor• Tax InvestigatorTax Investigator

الحكمى • الحكمى التقدير التقديرللضريبةللضريبة

الضريبة • الضريبة تقدير تقديرعلى • على االعتراض االعتراض

الضريبى الضريبى التقدير التقديرفى • فى تعديالت تعديالت

الضريبى الضريبى االقرار االقرارضريبية • ضريبية مسموحات مسموحاتضريبى • ضريبى مراجع مراجعالضريبى • الضريبى الفاحص الفاحص


• Tax InspectorTax Inspector• Tax Annual ReportTax Annual Report• Tax PositionTax Position• Tax FormsTax Forms• Tax AbsolutionTax Absolution• Tax PaybackTax Payback• Earnings Before Earnings Before

Tax (EBT)Tax (EBT)

الضريبى • الضريبى الفاحص الفاحصالسنوى • السنوى التقرير التقرير

الضريبىالضريبىالضريبى • الضريبى الموقف الموقفالضريبية • الضريبية النماذج النماذجالضريبة • الضريبة تقادم تقادمالضريبة • الضريبة استرداد استردادخصم • قبل خصم العائد قبل العائد

الضريبةالضريبة


• Earnings After Earnings After • Tax (EFT)Net Tax (EFT)Net

Profit Before Profit Before • Tax (NPBT)Net Tax (NPBT)Net

Profit After Profit After • Tax (NPAT) Tax (NPAT)

Turnover TaxTurnover Tax

خصم • بعد خصم العائد بعد العائدالضريبةالضريبة

قبل • الربح قبل صافى الربح صافىالضريبةالضريبة

بعد • الربح بعد صافى الربح صافىالضريبةالضريبة

دوران • دوران معدل معدلالضرائبالضرائب

•Praise be to ALLAHPraise be to ALLAH

dr. hussien shehata

Documents

income tax

wealth tax

tax laws

sales tax

tax systemstax definition

unified tax

tax objectives

stamps tax