After Being Ratified by a Presidential Decree:

·         "The Additional Income Tax" will be paid in cash not in kind with the tax return of January 2015

·         Financers are allowed to select ...

  After Being Ratified by a Presidential Decree: ·         "The Additional Income Tax" will be paid in cash not in kind with the tax return of January 2015 ·         Financers are allowed to select one of the State investment plan's projects to be funded by the tax receipts   Dr. Mustafa Abdul Kader, head of The Egyptian Tax Authority has assured that the additional 5% tax (temporarily) imposed on   individuals and corporate entities whose annual incomes exceed one million pounds, known in media as "The Rich People Tax" will be paid in cash not in kind.    He added that the presidential decree allowed the financers to select one or more of the service projects to be financed by the additional %5tax they pay, or any other public service project in the list that will be issued by a ministerial decree by The Finance Minister after coordination with The Planning Minister. The expected list of projects will cover fields of education, health, housing, infrastructure or any other fields provided that these projects are distributed by sector among governorates and cities of Egypt. He stated that this method of directing the tax receipts aims at encouraging financers to voluntarily pay their financial commitments to the State, especially when the tax's financial dimension is linked to the social dimension.   He pointed out that this tax law, issued days ago, by presidential decree no.44/2014, will be applied to profits gained by individuals and corporate entities during the current year 2014 and will be paid during the season of submitting the tax returns starting January 1st to March31 for individuals, and to April30 for corporate entities. As for the corporations whose fiscal year is overlapped, this tax will be applied to the fiscal years that start after the first of January 2014, and it will be collected when these corporations submit their tax returns, for three years.   He illustrated that ratifying this tax law was a response to proposals from a number of businessmen and investment societies. Moreover, it is temporary for just three years as the presidential decree stipulated that applying such a tax ends in 2016. He the pointed out that this tax is aimed to establish a new model of societal participation on the part of tax payers, it also reflects the state's keenness on considering the social dimension concerning the additional revenues that "The Additional Income Tax" will yield, estimated to range between 3 to 3.5billion pounds, thus accelerating the construction of the service projects enlisted in the State's budget plan. He added that the new tax will not be applied to those who got tax exemption for their commercial and industrial profits till the end of the exemption period.