1. Tax on Revenues of commercial And industrial activities
Conditions to be met for application of commercial And industrial Tax: (When profit is taxable?):
1- intention to make a profit:
the Taxpayers must be engaged in the activity for the purpose of making a profit
This requirement is based on the fact that non-profit activities are not taxable, for example cooperatives.

2. 2-Independence in practicing the activity:
The taxpayer must carry out his activity for his own account and for his responsibility
3-Making profit in Egypt:
The profits of the taxable commercial and industrial activity shall be made in Egypt regardless of the nationality

3. Taxable Revenue related to commercial and industrial activity:
1-Profits of commercial or industrial enterprises, mining, quarrying and petroleum companies (Article 19).
2-Profits of craftsmen and small activities.

4. 4-Profits earned by brokers and commission agents.
3-The profits of any commercial or industrial activity, even if limited to one transaction.
4-Profits earned by brokers and commission agents.
5-Profit from rental of shops and machinery.
6-Profits of transport activity.
7-Profits resulting from the purchase or construction of buildings for sale.
8-Profits resulting from the division of land for disposal or construction.
9-Profits from reclamation facilities or farming land and projects, animal husbandry and fishery.

5. The general model for measuring net taxable profit in commercial and industrial companies:
Net accounting profit
Add to:
1)Taxable Income and profits and not included in the income statement;
2) expenses and losses charged to the income statement but not tax deductible
Deducted from it :
I) Income and profits recognized in the income statement but not subject to tax;
2) Expenses and losses not charged to the income statement, but are tax deductible.
=Taxable Net profit before contributions

6. Example (3/1):
The accounting profit of one of the commercial Companies which Cairo is the Management Center for the year 2016 amounted to LE 70,000, And through checkup accounting records, it became clear that:
1)There is a sales bill of L.E 6000 not recorded in the accounting records.
2)The company had sent goods of L.E at the selling price of its branch in Alexandria registered within the sales when it was sent and not sold and was included in the main center Inventory on 31/12/2016, and the cost of goods L.E 9000.

7. 3) The company sent the goods to its branch in Tanta with a sales value of L.E (cost + 25%) and was not recorded as sales when sent to the branch and not sold half of it was included in the main Inventory at the sale price.
4) The company had sent goods to its branch in Yemen, its value L.E 30,000 and the cost of L.E 25,000. It was recorded as sales, and the branch did not sell until the end of the period and was not included in the inventory of the company in Egypt on that date.
Required:
Measurement of taxable net profit.

8. 70,000 Net accounting profit 6000 Add to:
1) The value of the sales invoice that was dropped because it is from the revenues of the current activity and not recorded, leads to a reduction in the taxable profit by the value of this invoice.
(20000)
Deducted from it :
2) The value of the goods sent to the branch of Alexandria because the branch and the main center is one accounting unit and the revenue is not recognized by sending, and the inclusion of its cost within the end-of-period inventory at the main Center is a proper procedure;

9. (3500)
3) Unrecognized profits on remaining goods without sale at Tanta branch, They must be included in the main center inventory at cost rather than at the sale price as incurred, Resulting in an increase in net profit, The difference between the cost and the sale price must be deducted because it is unrealized.
(35000/2)*(25/125)
52500
Taxable Net profit