Stamp Tax
- Stamp Tax is a tax levied every 3 month (at the end of each quarter) on the highest debit balances within the quarter for credit facilities and loans given to customers. Customer pays portion of the tax and the bank pays the remaining portion. Some non-individual customers are exempted from their portions of the tax and also some credit facilities are exempted from the tax. Tax is levied only in Egyptian pounds on credit facilities and loans in any currency.
- Current tax rate is 0.1% (0.05% customer portion & 0.05% bank portion) applied on highest debit balance for each credit facility or loan in the quarter. Customer portion of the tax will be deducted from the customer account associated with the given loan or the overdraft account itself, while the bank portion of the tax will be deducted from an expense account. All deducted tax amounts will be credited to an under settlement account till these amounts are paid to the tax authority. For credit facilities & loans in foreign currencies, tax is levied based on the equivalent in Egyptian pounds at the time of calculation. For exempted non-individual customers from the tax, still the bank will pay its portion of the tax for these customers.
Trusted-IT has built a soltion that calculate the detailed and total amount of this tax according to the highst debit balance during the perios (3 months according to Minstry of Finace – MoF), identify the customer type and calculate the related stamp amount accordingly.- The solution also provide wide range of reports which allow the bank to follow the details of stamps for period/customer type/each branch/etc…
