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HMRC internal manual

Double Taxation Relief Manual

HM Revenue & Customs
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Egypt: Underlying Tax

(1) Documents needed to support the underlying tax claim

The accounts showing the profits out of which the dividend was paid and the page of the tax declaration showing the final tax assessed will be required by the Underlying Tax Group.

(2) Calculation of rate

The share of profits paid to directors (Tantieme) is deductible in arriving at relevant profits.

(3) Legal reserve

Relevant profits are reduced by transfers of at least 5% of annual profit until the reserve reaches 50% of share capital.

(4) Spared taxes

Credit is available for spared taxes (see DT 6456). A copy of the certificate granting tax spared status and the relevant page(s) of the company’s tax computation showing the spared tax should be sent to the Underlying Tax Group.