Law No  143 of the Year 2006
Amending Some Provisions of the
Stamp Duty Law
Promulgated by Law No. 111 Of The Year 1980

Article 1:

The provisions of Articles (50, 51, 57, 60, 61, 64 and 74) of the Stamp Duty promulgated by the Law No. 111 of the year 1980 shall be replaced with the following provisions:

Article (50):

The stamp duty shall be due on the insurance premiums and charges with the following rates:

• One percent on every premium of life insurance against illness or bodily injuries or the relevant civil liability, as well as on the premiums of mandatory insurance whatever its kind.

• Ten percent on the charges of the insurance on land, river, maritime and air transport, at a minimum of one Egyptian pound

• Ten percent on every premium of the other insurances and the charges thereof including  war risk insurance, at a minimum of one Egyptian pound.

• Eight per thousand annually collected by the insurance companies on the total insurance premiums and charges. .

Article (51):

The tax due on the insurance premiums and charges shall be borne by the insurer and insured on a 50-50 basis.

The insurance company shall bear the tax on the total insurance premiums and charges in all events.

The tax shall not apply to the premiums and charges of re-insurance.

Article (57):

A proportional tax shall be due at the rate of two per thousand on the balances of the credit facilities and the loans and advances provided by banks during the financial year, with the bank to pay half per thousand on the balance at the end of each quarter of the year. The bank and the customer shall bear the tax on a 50-50 basis.

Article (60):

Every announcement, notice or notification done by any means is considered as an advertisement and a proportional tax at the rate of 15% from the advertisement charge or cost is due based on the executive regulations of this law according to the following cases:

• Advertisements placed on the billboards of movie theatres or on television screens

• Advertisements that are broadcast by radio

• Advertisements placed on public roads or on the rooftops or facades of buildings or other places, as well as on different means of transport

• Advertisements published in the printed materials that are produced and circulated in Egypt including newspapers, magazines, annual calendars, guidebooks, books, notebooks and periodicals of different types

Article (61):

Each entity performing an advertisement should notify the tax authority about advertisements that are displayed, broadcasted or published declaring the advertisement type, cost and tax due on.

The executive regulations of this law shall specify the other data to be included in the notification.

The advertisers of the legal persons shall pay the tax to the competent tax inspectorate. The bodies that produce advertisements for natural persons shall collect the tax and remit the same to the competent tax inspectorate, all within two months from the date on which the advertisement took place.

In all events, the advertising bodies shall keep a register of the advertiser’s names.

All the above shall be according to the rules and procedures to be determined by the executive regulations of this law.

Article (64):

The following advertisements shall be exempted from tax:

• Advertisements that are produced for the public authorities or to alert the public to the implementation of laws and regulations, or which are generally for the purpose of awareness, including advertisements produced by the governmental tourist and information departments.

• Warning notices

• Notices of mandatory sales

• Notices relating to elections

• Advertisements placed by job seekers

• Notices relating to the regulation of business at firms

• Notification of death

• Notices about missing persons or items

Article (74):

A proportional tax shall be due on:

• The amounts to be paid to horse racing and pigeon hunting bettors plus other types of betting and lotteries of all types are at the rate of 60% of the said amounts, with the winner to bear the tax.

• The amounts or prizes that are to be paid in cash or in kind to competition winners at the rate of 20% of the amount or the value of the prize, with the winner to bear the tax.

The tax shall be reduced by 50% if the amount or the prize is to be maintained by the competition or lottery organiser.

• The shares or benefits that the debenture holders, the insured or the savers win through drawing or selection by lot held by any public or private body, at the rate of 15% of the amount obtained, with the winner to bear the tax.

Article 2:

The articles (9, 16, 40, 47, 48, 52, 53, 54, 55, 56, 58, 59, 62, 63, 65, 66, 75, 76, 77, 78, 93, 94, 95, 101, 103, 104, 105 and 106) of the Stamp Duty Law promulgated by Law No. 111 of the year 1980 shall be repealed.

Article 3:

Litigation in all the lawsuits that were filed or heard before the courts of different degrees before the effective date of this law between the Taxation Authority and taxpayers due to the dispute about the estimation of the stamp duty, shall be terminated, in case the disputable stamp duty does not exceed five thousand Egyptian pounds. Any claim for the portion that has not been paid out of any tax related to such lawsuits shall be denied.

In all events, the termination of the litigation shall not entitle the taxpayers to recover the payments already made in account of the disputable tax.

The foregoing shall take place unless the taxpayer insists on pursuing litigation by means of an application to be filed with the court before which the lawsuit is heard, within six months from the effective date of this law.

Article 4:

Taxpayers shall, in lawsuits other than those provided for in the preceding article, have the right, in the litigations existing between them and the Taxation Authority concerning the stamp duty which were filed or heard before  the courts of different degrees, before the effective date of this law, to ask for the said litigations to be terminated within one year from the said date in return for the payment of a percentage of the disputable tax and the other due amounts according to the following brackets:

• 30% of the value of the disputable tax and the other due amounts up to one hundred thousand pounds

• 60% of the value of the disputable tax and other due amounts in excess of one hundred thousand pounds

The payment by the taxpayer of the said percentages shall release the taxpayer from the value of the disputable tax and other due amounts, and the court shall issue a ruling terminating the litigation if the taxpayer presents evidence of such payment to the court.

Article 5:

The Minister of Finance shall issue the necessary regulations and decrees for the enforcement of the provisions of this law. Until such regulations and decrees are issued, the regulations and decrees in operation shall remain in force so far as they do not conflict with the provisions of this law.

Article 6:

This law shall be published in the Official Journal and it shall come into force as of the beginning of the month following its publication date. This law shall be stamped with the seal of the State and it shall be put into effect as a law of the State. Issued at the Presidency of Republic on 6 Gumada II, 1427 (Islamic Calendar), corresponding to 1 July, 2006 (Gregorian calendar).