Egypt has reached an agreement with 129 countries to treat multinational companies with tax

Mohamed Maait, Minister of Finance, announced a historic agreement reached by 130 countries, including Egypt, regarding the field of international taxes on how to distribute taxes related to multinational companies, especially companies working in the field of the digital economy, through digital platforms without having a legal entity in many of the markets operating in them.

 

Maait said that these countries also agreed to set new tax rules to prevent multinational companies from avoiding paying their fair share of taxes in the various countries of the world in which they operate by applying a minimum tax rate of no less than 15%.

 

The Minister of Finance added that this agreement was reached during the work of the twelfth conference of the members of the comprehensive framework of the program to combat base erosion and profit transfer, which are 139 countries worldwide, including the seven major industrialized countries, and organized by the Organization for Economic Cooperation and Development, and more than 650 representatives from Governments and international organizations held yesterday a video conferencing feature.

 

The Minister of Finance stressed that this historic agreement preserves Egypt's rights from tax revenues on the activity of multinational companies in Egypt, as it crowns the efforts of the Ministry of Finance in combating profit transfers and tax erosion, expecting that this international agreement will contribute to enhancing Egypt's tax revenues from corporate activity. The global digital economy.

 

For his part, Ramy Youssef, advisor to the Minister of Finance for tax policies, said that Egypt participated over the years with great effort in drafting this tax agreement, pointing out that Egypt expressed during the conference its support for this structural agreement, which 130 countries beside Egypt announced their support for what was expected. Other countries joining the agreement in the future.

 

He explained that Egypt will work with members of the comprehensive framework of the program to combat base erosion and profit transfer to develop the technical details of the agreement in the coming months in order to formulate the final agreement by October 2021.