Egyptian Tax Authority ‘signs accounting agreement with federation of ‘chambers of commerce’ for gold retail business


Gold Service

Sun 13 Nov 2022 | 6:01 p.m.

The Egyptian Tax Authority has signed a tax accounting agreement with the General Federation of Chambers of Commerce for gold trading activity in the retail sector.

The authority explained its concern to build bridges of trust between itself and the financiers, given the developments in the gold business in the retail sector, and the willingness of both parties to the agreement accountant to find solutions to existing disputes. between the funders of this activity and to work to avoid any disputes that may arise in the future.

The Tax Administration has been guided by the protocol signed between it and the General Federation of Chambers of Commerce “Merchant Divisions and Gold Manufacturers” in April 2020, in light of the provisions of Law No. 67 of 2016 on the value added tax (VAT). and its implementing regulations.

The authority has established rules and foundations for tax accounting, including the determination of annual income through inspections and discussions, where the tax authorities must make repeated aids for the facility to determine the amount, the quality, weight and carat of legal golf for goldsmiths, and precision. description of the equipment of the installation, as well as the missions, to discuss the financial backer in number of works.

The tax administration seeks to define precisely what is bought and sold during the year of gold, their weights, the carats, the workshops, the wholesalers who deal with them, the branches of the establishment and the number of its employees.

The Authority relies on the accounting and estimation of the quantity of gold jewelry sold, which is obtained through the minutes of inspection, discussion and tax declarations submitted by the taxpayer, taking into account from the place of origin, whether in a popular, media or high-end area format, and on annual working days.

The value of the cost of manufacturing a gram of gold obtained by the taxpayer, and accessible via a percentage of the price of a gram of raw gold contained in the executive instructions issued periodically by the tax administration, with the monthly average of raw gold price and their legal carat, where the authority calculates the “small jewelry of 18 carat gold which is approximately 8% of the price of one gram of raw gold, 7% for heavyweights, 6% for 21 carat fine gold and 5% for heavy weights.

The tax office has set the net profit percentage for the facility located in a popular area, at approximately 35% for heavyweights and 30% for 18-gauge heavyweights, and approximately 30% for weightlifters and 25% for 21 caliber. heavyweight. And 35 pounds for heavyweight, 35 pounds for heavyweight 21 karat gold and 30 pounds for heavyweight.

The percentage of net profit for the establishment located in a working-class area was around 14%, and 16% for the establishment located in a middle or high-end area.

The tax authority has determined the calculation of the annual net profit by the quantity of gold sold for each carat multiplied by the number of working days, multiplied by the gram of manufacture multiplied by the percentage of net profit.

Translated by Ahmed Moamar

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