{"id":561718,"date":"2021-04-19T03:46:59","date_gmt":"2021-04-19T03:46:59","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/04\/19\/your-office-rent-wont-be-hit-with-vat\/"},"modified":"2021-04-19T03:46:59","modified_gmt":"2021-04-19T03:46:59","slug":"your-office-rent-wont-be-hit-with-vat","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/04\/19\/your-office-rent-wont-be-hit-with-vat\/","title":{"rendered":"Your office rent won\u2019t be hit with VAT"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-03\"><\/a> <strong>Office + commercial spaces aren\u2019t going to be subject to 14% VAT:<\/strong> Proposed amendments to the VAT Act would impose a 1% schedule tax on the rent or purchase of commercial and administrative property \u2014 meaning your office or factory won\u2019t be subject to the <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/976a0bd2-9def-4208-8eed-a9bcee2355be\">full 14% VAT<\/a> as was previously reported in the local press, the Tax Authority said in a <a href=\"https:\/\/www.mof.gov.eg\/ar\/posts\/media\/607c6d001518140009de25e5\/%D8%A8%D9%8A%D8%A7%D9%86%20%D9%85%D8%B5%D9%84%D8%AD%D8%A9%20%D8%A7%D9%84%D8%B6%D8%B1%D8%A7%D8%A6%D8%A8%20%D8%A8%D8%B4%D8%A3%D9%86%20%D8%A7%D9%84%D8%AA%D8%B9%D8%AF%D9%8A%D9%84%D8%A7%D8%AA%20%D8%A7%D9%84%D9%85%D9%82%D8%AA%D8%B1%D8%AD%D8%A9%20%D8%B9%D9%84%D9%89%20%D9%82%D8%A7%D9%86%D9%88%D9%86%20%D8%A7%D9%84%D8%B6%D8%B1%D9%8A%D8%A8%D8%A9%20%D8%B9%D9%84%D9%89%20%D8%A7%D9%84%D9%82%D9%8A%D9%85%D8%A9%20%D8%A7%D9%84%D9%85%D8%B6%D8%A7%D9%81%D8%A9%20%D8%A7%D9%84%D8%AA%D9%8A%20%D8%B3%D9%8A%D9%86%D8%A7%D9%82%D8%B4%D9%87%D8%A7%20%D9%85%D8%AC%D9%84%D8%B3%20%D8%A7%D9%84%D9%86%D9%88%D8%A7%D8%A8\">statement<\/a>. The authority\u2019s clarification came months after property developers were up in arms over reported plans to impose <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/417b3333-0685-4109-9149-c11de423bd39\">VAT on non-residential properties<\/a>, saying businesses are already suffering from the repercussions of the pandemic and will not be able to bear the additional costs.<\/p>\n<p><strong>We\u2019re still waiting for word on a sugar tax as well as taxes on advertising:<\/strong> The amendments, which earned <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/47ee5e24-b61f-4e40-b65b-14f6b59d2626\">sign-off from the cabinet\u2019s economic committee<\/a> in June, would replace the 5% schedule tax on crackers and sweet pastries with the standard 14% VAT rate, but industry giants are pushing back on the tax The amendments would also <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/4b40b507-281a-45c7-932f-5e7f7446a40b\">subject most commercial advertising to the tax<\/a> but <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/4b40b507-281a-45c7-932f-5e7f7446a40b\">scrap the 20% stamp tax on ads<\/a> \u2014 and institute VAT drawbacks for tourists.<\/p>\n<p><strong>The timeline:<\/strong> The Tax Authority\u2019s statement yesterday didn\u2019t clarify where the bill currently stands, saying only that the House of Representatives will discuss it. The Finance Ministry has been holding public consultations on the proposed amendments with several industry players before shipping the bill to the House for discussion \u201cin a few weeks,\u201d House Planning and Budgeting Committee Undersecretary Mostafa Salem <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/42fc9b4b-85f3-4dbd-b755-645616299106\">told us earlier this month<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Office + commercial spaces aren\u2019t going to be subject to 14% VAT: Proposed amendments to the VAT Act would impose a 1% schedule tax on the rent or purchase of commercial and administrative property \u2014 meaning your office or factory won\u2019t be subject to the full 14% VAT as was previously reported in the local [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":561719,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7344],"tags":[72,187,83,69,7110],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-561718","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislation-watch","tag-enterpriseam","tag-legislation-watch","tag-real-estate","tag-tax","tag-vat","wpautop","entry"],"acf":{"mongo_id":"0809f68c-1e9c-4423-b43e-29da02a8451e","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2021\/4\/184.jpg","photo_position":"above","related_issue":[561711],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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Other new stipulations in the newly-passed amendments:The big\u2026","rel":"","context":"In &quot;LEGISLATION WATCH&quot;","block_context":{"text":"LEGISLATION WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/legislation-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/12\/362.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":568556,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/11\/15\/snackfood-industry-want-vat-act-amendments-scrapped\/","url_meta":{"origin":561718,"position":1},"title":"Snackfood industry want VAT act amendments scrapped","author":"enterpriseam admin","date":"15 November 2020","format":false,"excerpt":"LEGISLATION WATCH- Snackfood industry petitions House not to impose full VAT on sweets: Snackfood makers are lobbying the House Planning and Budgeting Committee to leave VAT on pastries and baked goods unchanged in any upcoming amendments to the VAT Act, CEO of snack food giant Edita Hani Berzi told the\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/11\/148.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":575752,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/10\/26\/vat-act-amendments-submitted-to-egypts-house-of-representatives\/","url_meta":{"origin":561718,"position":2},"title":"VAT Act amendments submitted to Egypt\u2019s House of Representatives","author":"enterpriseam admin","date":"26 October 2020","format":false,"excerpt":"LEGISLATION WATCH- Office space and snack tax? Amendments to the VAT Act that would impose VAT on non-residential property and some snack foods are now with the House of Representatives after going through Cabinet, the local press reports. The changes would apply a 14% VAT to the rent and purchase\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":553409,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/12\/02\/lawmakers-could-spike-vat-hikes-on-inflation-concerns\/","url_meta":{"origin":561718,"position":3},"title":"Lawmakers could spike VAT hikes on inflation concerns","author":"enterpriseam admin","date":"2 December 2021","format":false,"excerpt":"Inflation could put the brakes on VAT hikes: Lawmakers could spike proposals for a round of targeted VAT hikes amid concerns about their impact on inflation. The changes \u2014 which among other things would more than double the tax charged on crackers and sweet pastries to 14% \u2014 have been\u2026","rel":"","context":"In &quot;LEGISLATION WATCH&quot;","block_context":{"text":"LEGISLATION WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/legislation-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/12\/209.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":574833,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/09\/23\/ads-are-still-exempt-from-vat-but-not-stamp-tax-and-vat-on-production-inputs\/","url_meta":{"origin":561718,"position":4},"title":"Ads are still exempt from VAT, but not stamp tax and VAT on production inputs","author":"enterpriseam admin","date":"23 September 2020","format":false,"excerpt":"Broadcast ads are exempt from VAT, but subject to stamp tax and VAT on production inputs: Intermediary goods and services used to produce ads are subject to a 14% value-added tax (VAT), the Tax Authority said in a directive (pdf) to clarify how tax legislation treats ads. The cost incurred\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/9\/254.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":573302,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/07\/28\/real-estate-developers-oppose-vat-on-non-residential-properties\/","url_meta":{"origin":561718,"position":5},"title":"Real estate developers oppose VAT on non-residential properties","author":"enterpriseam admin","date":"28 July 2020","format":false,"excerpt":"LEGISLATION WATCH- Real estate developers oppose VAT on non-residential properties: Real estate developers have pushed back on proposed legislative amendments that would impose a 14% value-added tax (VAT) on the sale and rental of non-residential properties, the local press reports. The Federation of Egyptian Industries\u2019 real estate division is currently\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/7\/226.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/561718","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=561718"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/561718\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/561711"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/561719"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=561718"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=561718"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=561718"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=561718"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=561718"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}