Minutes of joint committee meeting including RTA, Federation of Tourist Chambers, Tourism Establishments and Restaurants
The joint committee that includes the Real Estate Tax Authority (RTA), The Egyptian Tourism Federation (ETF) and The Chamber of Tourism Establishments and Restaurants; held a meeting at the Federation’s headquarters to discuss the problems facing the touristic establishments and restaurants due to the amusement tax.
The meeting (parties) reviewed the files related to the existing disputes between establishments, whether touristic establishments or hotels, with RTA, submitted by the Recreational Tourism Committee in the Restaurant and Establishment Chamber, headed by Mohamed Fathy, a member of the Board of Directors and Chairman of the Committee. It was agreed that RTA would set assessments for the amusement tax on restaurants and tourism establishments, especially those that offer variety of shows.
The Joint Committee on amusement tax and the Egyptian Federation of Tourist chambers during its latest meeting agreed that the amusement tax due along with the entrance fee will be L.E.20 per person, for restaurants that have prices approved by the Ministry of Tourism and have an artistic show license and without entrance fee.
Same measurements and standards will also be applied to tourist establishments and restaurants that have an artistic show per day (ordinary artists not celebrities) and without change in prices but with free admission a L.E.20 entrance tax is applied.
It was also agreed that The Chamber of Tourism Establishments and Restaurants would collect complaints related to amusement tax and present them to the Recreational Tourism Committee for study and communicate with RTA to resolve them, before entering into legal or judicial disputes.
The participants from the Real Estate Tax Authority announced that they will study and implement special and clear requirements for inspection of tourist establishments and the basis for applying the tax. They also solved the existing dispute between RTA and one of the tourist establishments affiliated to the Chamber “Blue Nile”, settling the debt and reconciling with the Authority.
ETF had signed a cooperation and coordination protocol with RTA. The protocol included the principles and controls for calculating the amusement tax within hotels, restaurants, and tourist shops, including nightclubs and discotheques.
The protocol stipulates that the tax will be determined and calculated in accordance with what was in force before the issuance of Law No. 31 of 2023 issued in this regard, with a minimum of L.E. 20 per person in musical, singing, dancing or entertainment performances as long as entry is free, in accordance with the provisions of Article 3 from Law No. 24 of 1999.
The number of performers is determined according to the total capacity of the place designated for holding the show, or not to exceed 50% of the hotel facility’s occupancy. In the case of presenting musical and artistic performances, it is calculated according to the entry rate of 30% of the value of the food and drinks specified in the contracts concluded with tourism companies; taking into account the calculation of the service fee and the value added tax.
The protocol mandated the real estate tax specialists to tighten control to ensure that the prices of the food and beverages will not exceed the prices during normal days in the hotel. In case of an increase the law will be applied in this regard. The amusement tax does not apply to the shows presented by hotel employees (animation) and internal music in the lobby. The tax does not either apply to the games inside the hotel, including water games, as well as restaurants and tourist shops inside the hotel, provided that entry is free. The amusement tax does not apply to the shows presented by hotel employees (animation) and internal music in the lobby. The tax does not apply to the games inside the hotel, including water games, as well as restaurants and tourist shops inside the hotel, provided that entry is free.
As for the restaurants and touristic establishments located outside a hotel “night club, Disco”, tax value is calculated as 30% of the entrance fee if exists and persons in charge are authorized to strengthen surveillance to make sure of that. In case of internal music is played or a player with one musical instrument such as lute or any other instrument, amusement places tax is not applied. Should those establishments present one fixed daily show within limited time of the operating day, the tax is applied as L.E 20 a person, providing that the managers of the establishments submit a statement of the actual goers upon the formal bills.
According to the protocol; serving meals with prices more than those determined by the Ministry of Tourism and Antiques, should be included within entrance fees. Parties, shows or concerts in the touristic restaurants are dealt with as those in the hotels, considering that identifying the activity is based on the daily actual operation not only on that mentioned in the license.
All hotels, restaurants and touristic places should perform (pay) the amusements places tax on the due time legally determined as 24 hours as from the beginning of the party or the show with nothing to prevent the operators from depositing the tax amounts in advance to avoid missing the legal time and settled them later.
Al-Ahram Gate