The measures form part of the second phase of the government’s tax facilitation package, developed following around 40 consultation sessions with representatives of the tax community and business stakeholders.
Egypt has introduced a new package of tax incentives and facilitation measures, including 33 legislative and executive procedures, as part of efforts to expand the tax base, support businesses, and enhance voluntary compliance, Finance Minister Ahmed Kouchouk said.
The measures form part of the second phase of the government’s tax facilitation package, developed following around 40 consultation sessions with representatives of the tax community and business stakeholders.
Kouchouk said the package focuses on providing incentives, exemptions, and simplified procedures for compliant taxpayers, alongside encouraging entrepreneurs and small and medium-sized enterprises (SMEs) to join a simplified and integrated tax system.
As part of the plan, the first 100,000 taxpayers joining the simplified system will be eligible for low-cost, concessional financing to support business expansion and growth.
The minister also announced the extension of the tax dispute settlement law until December 31, 2026, aiming to ease burdens on taxpayers and accelerate the resolution of outstanding cases.
Additional measures include the introduction of a “white list” and a “privilege card” for compliant taxpayers, granting them priority access to specialized services and new incentives to strengthen trust and voluntary tax compliance.
The ministry is also restructuring value-added tax (VAT) refund departments to simplify procedures and accelerate payments, particularly for companies on the white list. VAT refunds reached EGP 7.2 billion in the previous fiscal year, marking a 151% increase, with further growth targeted to enhance liquidity for businesses.
On the legislative front, the government plans to eliminate double taxation on dividend distributions between parent and subsidiary companies, while introducing amendments to income tax law to simplify the write-off of small debts and reduce procedural burdens.
Kouchouk added that new premium tax service centers will be launched in New Cairo, Sheikh Zayed, and New Alamein, while the Egyptian Tax Authority will, for the first time, delegate certain services to the e-Tax platform to provide technical and operational support to taxpayers.
The package also includes measures to support capital markets, including shifting taxation on listed securities to a stamp tax system instead of capital gains tax, and offering temporary tax incentives for companies listing on the Egyptian Exchange.
Other reforms include enabling tax offsetting between credits and liabilities, allowing taxpayers to reclaim credit balances from income tax filings, and issuing guidelines to standardize the tax treatment of exported services.
The minister said new legislation will allow the issuance of temporary tax cards to accelerate business establishment procedures, alongside reforms to integrate the informal economy and ensure fairer tax practices.
Further steps include abolishing estimated tax assessments going forward, mandating the use of tax cards in all government dealings, and reducing VAT on medical devices from 14% to 5% to support investment in the healthcare sector.
The measures are part of broader government efforts to improve the efficiency of the tax system, stimulate investment, and support sustainable economic growth.
