EGPC rescues IOCs from 5% surtax
The Tax Authority has notified EGPC that it must pay EGP 2.5 billion in back taxes owed from the scrapped 5% surtax on income over EGP 1 million it had imposed on E&P companies back in 2014, Al Borsa reports.
EGPC had stepped in to pay the surtax on their of IOCs after as many as 30 E&P companies had objected to paying the surtax on the grounds that a special income tax system had been already been set for the industry.
Under this system, E&P companies pay a 40.6% income tax on top of a 22.5% general tax on corporations. Sources said that the taxman is also after the banks, having asked NBE, Banque Misr, and AAIB to pay a total of EGP 817 million owed as a result of the surtax.