Title chapter 2 part one - Copy.pdf ✅

CHAPTER TWO TAX ON COMMERCIAL & INDUSTRIAL PROFITS Dr. Rana Mahmoud
A- Conditions for imposing the TOC & IP: 1- Income source: a- The net profit derived from the self-utilization of both labor and capital for achieving gain. b- The taxpayer should not subject to the direction or control of someone else, that is, his own master. 2- Profit Concept: a- Income is consisted of any type of gain, benefit, profits, or other increase in wealth. b- It is not exempted by the Egyptian law. c- It is measured according to the accrual basis.
3- Realization of Profits in Egypt: a- It is imposed on the profits belong to any Egyptian firm operating in Egypt. b- Any foreign firm carrying a business in Egypt. 4- Tax collection: a- It is required at the date of return submitted by the taxpayer b- The advance payment of tax may be required by state. c- It uses a progressive tax rate. 5- Taxable year: The TOC & IP is imposed on the net profit incurred during the period of twelve months ending on December, 31 regardless of the financial year of the firm.
B- Scope of Taxable C & IP: 1- Profits of Commercial and Industrial profits: a- It is imposed on profits derived from buying goods to sell them at profit. b- From converting raw material to goods by manufacturing process and selling products with a view to earn profits. 2- Profits of Sole-Firm and Partnerships: It is imposed on the profits of sole-firm, limited partnerships, general partnerships, and corporation. 3- Profits of Operations of Brokerage & Commission: It is imposed on the amount paid to any individuals or companies as a commission or brokerage.