Egypt’s newly introduced tax facilities present a major incentive for individuals and businesses to resolve outstanding tax disputes without incurring additional penalties, according to Rasha Abdel Aal, Head of the Egyptian Tax Authority (ETA).
Speaking on the impact of Law No. 5 of 2025, Abdel Aal described the measures as a “golden opportunity” for compliant taxpayers to settle disputes swiftly and cost-effectively.
“Taxpayers who maintain regular books and have submitted settlement requests can now obtain a full exemption from late payment fines and additional taxes—provided they pay their dues within three months of filing the request,” Abdel Aal said.
Supporting Taxpayers, Streamlining Compliance
The initiative is part of a broader strategy by Egypt’s Ministry of Finance and the ETA to support the tax-paying community, especially businesses that demonstrate transparency and regularity in financial reporting.
“These measures are not only financial relief—they reflect our commitment to building trust with the tax community and reducing the burden on those who play by the rules,” Abdel Aal added.
The tax facilities apply to a wide range of disputes to encourage early resolution. To benefit, taxpayers must ensure they:
- Maintain regular financial records in accordance with Egyptian accounting standards
- Submit a formal settlement request supported by these records
- Complete full payment of the tax due within three months of the request date
Deadline Reminder for Taxpayers
Abdel Aal emphasized the importance of acting within the timeframe: “We urge all eligible taxpayers to settle their dues promptly. Delaying beyond the three-month period forfeits their right to penalty exemptions.” The new law is part of Egypt’s broader fiscal reforms aimed at improving tax collection efficiency, reducing litigation backlogs, and enhancing business confidence.
