In a clear nod to deepening trust and transparency with the private sector, Rasha Abdel Aal, Chair of the Egyptian Tax Authority, held high-level discussions this week with representatives from the Egyptian African Businessmen’s Association. The meeting underscored a shift toward institutionalized dialogue, aimed at addressing real-world challenges facing taxpayers and ensuring the continued modernization of Egypt’s tax system.
The meeting, held under the directives of Finance Minister Ahmed Kouchouk, reflects the ministry’s ongoing commitment to inclusive policy development and a fairer, more responsive tax environment. Abdel Aal emphasized that the Tax Authority is fully committed to fostering trust with the business community, especially those operating in high-growth sectors across the African continent.
“We welcome serious, solution-oriented dialogue,” she said, noting that the Authority is making substantial progress on legislative and procedural reforms that simplify compliance and encourage informal businesses to join the formal economy.
Central to the discussion was the government’s recent rollout of its first wave of tax relief measures in February 2025, including the landmark Law No. 6. This legislation introduced a simplified taxation scheme for enterprises with annual revenues below EGP 20 million, providing tiered tax rates, streamlined procedures, and targeted exemptions to reduce the burden on small businesses.
Abdel Aal also highlighted critical provisions of Law No. 5 of 2025, which offers taxpayers an opportunity to settle backdated disputes through partial payments or full settlements, depending on the case type. One of the law’s most notable features is a cap on late payment penalties, which are now limited to 100% of the original tax owed — a move welcomed by stakeholders as a step toward fairer enforcement.
Reinforcing a message of reassurance, Abdel Aal stressed that businesses that operate transparently and in good faith have nothing to fear. “Our doors are open to any taxpayer committed to legal compliance and full disclosure,” she said, urging businesses to engage only with registered taxpayers in both conventional and e-commerce transactions.
Digital modernization was also front and center. Egypt’s growing e-invoicing and risk management platforms now enable the Authority to detect fraudulent or fictitious invoices in real time — both from issuers and recipients. “We will not recognize such invoices for input tax credits,” Abdel Aal said firmly, framing the crackdown as part of a broader push for fiscal justice and competitive neutrality.
Representatives from the African Businessmen’s Association applauded the Authority’s reforms and its open-door policy, while voicing concerns over a number of persistent issues — including discrepancies in tax assessments versus actual business records and delays in customs bond reimbursements.
The group proposed the formation of joint task forces between the Tax Authority and the Customs Authority to accelerate resolutions on guarantee claims. They also called for the recognition of essential business expenses — such as employee transportation costs — even in the absence of formal invoices, provided they align reasonably with business scale.
“There’s a growing sense of openness and professionalism in the Authority’s leadership,” said Mahmoud Hegazy, Vice Chair of the Association. “But for real impact, we need continued responsiveness on the ground.”
The dialogue also featured real-time resolution of several taxpayer concerns, signaling a shift from bureaucratic distance to practical, taxpayer-centered governance.
Among those in attendance were senior Tax Authority officials including Mostafa Kosh, Director of the Chair’s Technical Office, and Mohamed Sorour, Head of the Advance Tax Ruling Unit.
