March 30, 2021

New measures to link Social Insurance with Payroll Tax in Egypt

On 29 March 2021, the Social Insurance Authority in Egypt has issued a circular whereby the tax registration number of a company or entity will be recorded in the electronic social insurance system. Employers and companies are given six months grace period to comply with the new requirements; in the meantime, they are required immediately to display their tax registration number in all correspondence and documents submitted to the Social Insurance Authority.

This circular comes in the wake of a cooperation protocol concluded between the Social Insurance Authority and the Tax Authority to exchange information with the purpose of tightening the control system and prevent all kinds of evasion in relation to payroll taxes and social insurance payments.

The Unified Tax Procedures Law No. 206 of 2020 – which was issued last October – gave the Tax Authority the right to enter into agreements and protocols with other authorities and entities for the exchange of information. To learn more about the new Unified Tax Procedures Law, read our article.

In the same context, the new Social Insurance Law No. 148/2019 has harshened the sanctions applicable on evading payment of social insurance contributions or disclosing or submitting incorrect information concerning the number of hired employees or their actual salaries. To know more about the new social insurance law please read our summary note.

For further questions, please contact Dr. Eman Riad or Heba El-Abd

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