{"id":563263,"date":"2021-06-24T04:00:16","date_gmt":"2021-06-24T04:00:16","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/06\/24\/suez-canal-services-may-be-exempt-from-vat\/"},"modified":"2021-06-24T04:00:16","modified_gmt":"2021-06-24T04:00:16","slug":"suez-canal-services-may-be-exempt-from-vat","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/06\/24\/suez-canal-services-may-be-exempt-from-vat\/","title":{"rendered":"Suez Canal services may be exempt from VAT"},"content":{"rendered":"

<\/a> Shipping companies are in line for a Suez Canal VAT break:<\/strong> Shipping companies would no longer have to pay VAT on Suez Canal transit fees under proposed amendments designed to make the canal more attractive to shippers. Under the draft changes approved by the cabinet yesterday, the Suez Canal Authority (SCA) would no longer have to charge and remit VAT on payments it receives from shipping companies for its transit services, according to a statement<\/a> published following the weekly cabinet meeting. Any past VAT taxes the authority hasn\u2019t still remitted will be waived should the amendments become law, the statement said.<\/p>\n

Changes likely to be fast-tracked: <\/strong>The bill isn\u2019t expected to take long to be ratified as the SCA has accumulated a large pile of unpaid VAT, and wants to avoid having to raise transit and service fees amid competition from other waterways, director of taxpayer services at the Tax Authority Mohsen El Gayar told us. The SCA has not paid VAT on services since the act passed in 2016, due to disagreements on whether they fall under the act\u2019s purview, El Gayar said.<\/p>\n

This is separate from the other VAT changes in the pipeline: <\/strong>The government had drafted and approved<\/a> several changes to the VAT Tax Act last year as part of an overhaul to the 2016 legislation, but the changes are yet to make their way through the House. They include subjecting most commercial advertising to the tax, allowing tourists to claim VAT rebates, affording special economic zones including the Suez Canal Economic Zone the same VAT treatment as freezones, and closing exemptions for commercial and administrative real estate remain, among others.<\/p>\n

The government is on a charm offensive right now to attract shipping companies to the<\/strong> canal.<\/strong> The SCA this week announced it would slash transit fees<\/a> by up to 75% on some shipments travelling between Southeast Asia and Europe, the US and West Africa.<\/p>\n

And there\u2019s a good reason why:<\/strong> Suez Canal revenues are an important source of hard currency for Egypt, bringing in more than USD 550 mn<\/a> in April \u2014 their highest month on record.<\/p>\n

ALSO FROM THE CABINET- <\/strong><\/p>\n

Multi-bn electric rail contract approved by the government: <\/strong>A contract the National Authority for Tunnels is due to sign with a Siemens-led consortium that also includes Orascom Construction and Arab Contractors to develop a USD 23 bn high-speed electric rail network<\/a> was approved by ministers. The consortium signed an MoU<\/a> with the authority earlier this year<\/a>. The three companies are expected to design, install, and commission the rail system \u2014 which could span a massive network of up to 1.7k.<\/p>\n","protected":false},"excerpt":{"rendered":"

Shipping companies are in line for a Suez Canal VAT break: Shipping companies would no longer have to pay VAT on Suez Canal transit fees under proposed amendments designed to make the canal more attractive to shippers. Under the draft changes approved by the cabinet yesterday, the Suez Canal Authority (SCA) would no longer have […]<\/p>\n","protected":false},"author":1,"featured_media":563264,"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":[7306],"tags":[282,72,180,133,69,7110],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-563263","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cabinet-watch","tag-cabinet-watch","tag-enterpriseam","tag-legislation","tag-suez-canal-authority","tag-tax","tag-vat","wpautop","entry"],"acf":{"mongo_id":"45cfda6f-5f0d-4021-a7cb-746b9cb49e8b","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2021\/6\/311.jpg","photo_position":"above","related_issue":[563255],"teaser":"","voice_url":""},"yoast_head":"\nSuez Canal services may be exempt from VAT - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2021\/06\/24\/suez-canal-services-may-be-exempt-from-vat\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Suez Canal services may be exempt from VAT\" \/>\n<meta property=\"og:description\" content=\"Shipping companies are in line for a Suez Canal VAT break: Shipping companies would no longer have to pay VAT on Suez Canal transit fees under proposed amendments designed to make the canal more attractive to shippers. 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The fund was signed off on by the cabinet last week.Financing development: The money would \u201ccontribute to the sustainable economic development\u201d of\u2026","rel":"","context":"In "Suez Canal"","block_context":{"text":"Suez Canal","link":"https:\/\/enterpriseam.com\/egypt\/category\/data\/suez-canal\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/2\/39.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":549406,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/09\/15\/an-egp-2-coin-will-be-in-circulation-soon-is-global-blue-coming-to-egypt\/","url_meta":{"origin":563263,"position":2},"title":"An EGP 2 coin will be in circulation soon + is Global Blue coming to Egypt?","author":"enterpriseam admin","date":"15 September 2022","format":false,"excerpt":"We\u2019re getting an EGP 2 coin and an Egyptian-British mint in the Suez Canal Economic Zone (SCZone) after cabinet approved the moves at its weekly meeting yesterday, according to a statement. The Royal British Mint, the Egyptian Mint, and the Public Treasury Authority will partner on the roll-out and operation\u2026","rel":"","context":"In "Cabinet watch"","block_context":{"text":"Cabinet watch","link":"https:\/\/enterpriseam.com\/egypt\/category\/regulation\/cabinet-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":608345,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/10\/18\/suez-canal-transit-fees-to-rise-next-year-plus-news-from-the-fra\/","url_meta":{"origin":563263,"position":3},"title":"Suez Canal transit fees to rise next year. 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Officials from the SCA will board the vessel today to begin their probe into the crew\u2019s actions in the moments leading to the ship running aground in the Suez Canal last week Sayed Sheaysha, a\u2026","rel":"","context":"In "Suez Canal"","block_context":{"text":"Suez Canal","link":"https:\/\/enterpriseam.com\/egypt\/category\/data\/suez-canal\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/4\/11.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":626442,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/07\/02\/finmin-exempts-export-freight-fees-from-vat\/","url_meta":{"origin":563263,"position":5},"title":"FinMin exempts export freight fees from VAT","author":"enterpriseam admin","date":"2 July 2018","format":false,"excerpt":"The Tax Authority has decided to exempt freight fees on exports from being subject to a VAT, Tax Authority head Emad Samy tells Al Masry Al Youm. The decision, which applies to air, land and sea shipping, came after extensive lobbying by the shipping division of the Federation of Egyptian\u2026","rel":"","context":"In "Egypt Politics + Economics"","block_context":{"text":"Egypt Politics + Economics","link":"https:\/\/enterpriseam.com\/egypt\/category\/egypt-politics-economics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/563263","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=563263"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/563263\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/563255"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/563264"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=563263"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=563263"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=563263"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=563263"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=563263"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}