Unifying system calculating for wages and salaries tax

The system purpose to reduce the existence of examination differences by increasing accuracy and commitment to calculate and pay tax .

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A system for unifying the principles and standards for calculating wages and salaries tax :-

The system aims to reduce the existence of examination differences by increasing accuracy and commitment to calculate and pay tax

This system aims to improve the quality of services provided by the Financial Supervisory Authority and facilitate the process of collecting payroll tax, because until now Egypt has been taking a complex system for collecting tax on the total wage without considering tax exemptions or deductions, and this causes many administrative procedures and complications.

The new system for collecting income tax was launched in 2021 The system aims to reduce the existence of examination differences by increasing accuracy and commitment to calculating and paying tax, which depends on the new link to payroll tax This system allows employees and business owners to submit tax returns electronically through the Financial Regulatory Authority platform

** You can get the file used to raise the data of salaries of your employees according to the sector to which the company belongs (private, public, governmental) by entering the portal of the Egyptian Tax Authority (click here)

Overview : -

When registering in the system of standardization of the foundations and standards for calculating wages and payroll tax, the submission of the monthly form of payroll and wages tax will be through this system only ▪ The system receives a large number of employees up to fifty thousand employees per facility ▪ The system provides several options cyclist Employee data) either through integration with the company's systems for salaries and wages, or through manual entry on the system's portal or through an Excel file downloaded from the portal And insert the data in it and then upload it to the portal (▪ The system of standardizing the bases and standards for calculating wages and payroll tax is divided into two pages, a special personal page for the employee and another page for the establishment as a whole ▪. The system of standardizing the bases of calculating wages and payroll tax is an important development aimed at achieving justice in calculating payroll and wages tax more clearly in terms of laws, and in addition to saving time and effort ▪, financiers are notified of their transfer to the system of standardizing the bases of calculating wage tax and Salaries and the scope of the basic taxation system in the context of the registration of financiers

The Platform for Standardization of Tax Accounting on Wages and Salaries is a project of the Egyptian Tax Authority, to assist taxpayers in submitting their payroll forms and standardizing the principles and standards of tax calculation on them. This SDK outlines the steps that will help funders use the system easily by integrating with their basic payroll system.

About the project The system of unifying the foundations and standards for calculating taxes on salaries is one of the digital transformation systems of the Egyptian Tax Authority within the framework of the efforts made in development under the vision of the Ministry of Finance for development in cooperation with the tax solutions company Atax, through the future vision in force and helping financiers through the system, so the system aims to help companies calculate the tax for salaries through the system and within the framework of the continuous efforts made by the Egyptian Tax Authority to develop and update the Tax Work Service In order to reduce the burden on the financier by facilitating the process of filling out and submitting electronic tax returns for salaries, a project is presented to develop the system of unification and calculation of wages and salaries tax, which was prepared in accordance with the provisions of the Unified Tax Procedures Law promulgated by Law No. 206 of 2020 and its amendment and executive regulations. The objectives related to the application of the system The system of standardizing the calculation of payroll tax allows financiers who are obliged to submit payroll tax to link the planning systems of the institutions used and the comprehensive mechanization system that is used by the financier to provide the monthly payment model automatically and complete the tax from payment and examination, and these are some of the special objectives of the system for financiers.

Objectives related to the application of the system: -

▪ Activates the payroll system without repeatedly entering its previously existing main data into the comprehensive automation system. Also, any modification in the main financier data within the comprehensive automation system will be copied into the payroll ▪ system.

It connects with enterprise planning systems (ERP) or payroll systems for financiers, allowing it to easily send and correct data to the payroll system ▪

Calculates monthly payroll tax easily ▪

Issues the salary slip for the employee ▪

Unifying the criteria for calculating payroll tax at the level of the Republic among its third parties (taxpayer, employee, authority) ▪ Maximizing tax compliance without increasing new ▪ burdens

Keeping abreast of new and different employment situations and unifying the calculation of payroll tax on them ▪

Enhance financial inclusion and reduce direct ▪ cash transactions

Establishing an employee portal to enhance transparency between payroll tax parties (taxpayer, employee, authority) ▪ Accommodate all employment cases at the level of each company ▪

Facilitate dealing with the system without complicated ▪ procedures Contain more than one disbursement in the same month for the same employee ▪ Conduct the settlement in an interactive manner to reduce the gap in the annual settlement Accommodate the system Quarterly, semi-annual and annual ▪ ▪ disbursements

Unifying the criteria for calculating payroll tax in interaction with the latest regulations and laws. (New exemption package) ▪ Using the same current users of the comprehensive automation system and not having to go to the mission to obtain activation ▪ codes Integration with the comprehensive automation system Automatically create claims and complete payment processes and other tax ▪ operations

Maintain data confidentiality with a protected and encrypted ▪ database

Allow direct technical integration and download to the portal or manual ▪ entry

Dealing with the various entities of the company as branches or units

Integration requirements: -

In order for the financier to use the payroll tax standardization system, the financier must be registered in the comprehensive mechanization system so that the taxpayer can activate the process of linking the two systems of tax calculation and complete the payment process. Therefore, the first steps that the financier must go through is to enter his workspace in the Egyptian Tax Authority and ensure that the comprehensive mechanization system is activated before the financier is included in the payroll system. During the process of listing the financier on the system, the financier will access his workspace in the Tax Authority portal and choose to activate "Payroll System Services". The payroll system will send the request of payroll users from the comprehensive automation system to copy it and provide access to users. The financier and users will be prevented from dealing on the salary forms available in the comprehensive automation system and allowing dealing on the payroll system, the financier will do this process for the first time only in order to complete the integration process with the system and include the financiers on the system successfully and effectively, the work rules and integration rules of the system must be followed, which are: ▪ The financier must be activated in the portal of the Tax Authority. ▪ The financier has filed payroll tax before. ▪ The financier is obligated to pay payroll and wage tax. ▪ Integration is encrypted ▪ for each username for each company with its own password and also for each authorized by the company its username and password. The password for tests is valid for 15 days only. ▪

Steps of the integration process: -

General technological features of the system: -

The following has been approved by the Authority:

Reda Abdel Qader, Assistant Minister of Finance for the Egyptian Tax Authority Affairs, said that in implementation of the directives of the Minister of Finance to accelerate the automation of the tax system to be in line with Egypt's Vision 2030 for digital transformation, the Tax Authority is implementing a number of mechanization and development projects in parallel, until they are completed in record time, pointing out that the system of unifying the foundations and standards of the wages and salaries tax is the latest project that the Authority is currently working on based on the establishment of a unified platform through which Calculating the taxes due on the salaries and entitlements of workers in all sectors of the national economy electronically, noting that the trial operation of the system for unifying the foundations and standards of wages and salaries tax has been launched since December 15, 2022 on a limited number of companies

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