Amendments to the Electronic Collec

On 29 December 2018, the Ministry of Finance Decision No. 760 of 2018 (the “Decision”) was published, amending the electronic payment and collection system for government receivables (“e-payment system”).[1] A previous Ministry of Finance Decision No. 269 of 2018,[2] published in July 2018, had set up thresholds for the collection of government receivables and dues, including taxes and customs, from July to December 2018 by which payments up to EGP 5,000 could be made in cash; payments between EGP 5,000 and 100,000 could be made by check or electronically; and payments above EGP 100,000 must be made electronically; with all government receivables, regardless of their value, to be made through the e-payment system starting 1 January 2019. The new Decision postpones this date, such that the thresholds still apply until 1 May 2019 while setting a new threshold beginning with May 2019 by which the collection of any government receivables above EGP 500 must be made electronically while those below the said value could be made through any payment method (please refer to Table 1). The Decision also now enables the Minister of Finance to exempt certain agencies or receivables from the requirement of using the e-payment system if they lack the necessary mechanisms or procedures for electronic collection. The postponement and the exemption might be due to pragmatic reasons as a way to ensure that the collection is not disrupted by the incomplete development of the e-payment system on the ground. According to a Ministry of Finance statement,[3] the Egyptian Tax Authority requested from the Ministry approval on the usage of checks for collecting receivables until 30 April 2019, which coincides with the end of the current tax declaration season. In addition, the statement indicates that there still remains more than 2,000 payment machines to be set up at various government agencies such as the offices of the traffic prosecutors, the Notary Public, the Commercial Registry, traffic units, courts, security directorates, and the Passports, Emigration & Nationality Administration which will require activation as well as the training of the relevant governmental employees on the usage of the e-payment system. Accordingly, the Decision might be aimed at addressing the issues that have been faced with the establishment of the e-payment system thus far. Table 1: Collection of Government Receivables as per the new Decision No. 760 of 2018   [1] Ministry of Finance Decision No. 760/2018 amending certain provisions of Decision No. 269/2018 on the collection of government receivables, including taxes and customs, through the electronic payment and collection system, Egyptian Gazette, Issue No. 294 (cont.), 29 December 2018. [2] Ministry of Finance Decision No. 269/2018 on the collection of government receivables, including taxes and customs, through the electronic payment and collection system, Egyptian Gazette, Issue No. 148 (cont.), 2 July 2018. [3] Ministry of Finance, “After the approval of the Prime minister: The Minister of Finance issues a decision on the electronic collection of government receivables, including taxes and customs, as of 1 May 2019”, available through this link (in Arabic).