Egypt’s Minister of Finance, Ahmed Kouchouk, held an open dialogue with members of accounting firms and tax experts to reinforce trust, partnership, and certainty with the tax community, as part of the government’s broader tax reform agenda. The meeting was attended by Rasha Abdel Aal, Head of the Egyptian Tax Authority (ETA), underscoring institutional alignment behind the reform process.
Kouchouk said he was “very pleased” to engage directly with tax and accounting professionals, stressing that their proposals and recommendations will be incorporated into the second package of tax facilitations currently under development following extensive societal dialogue.
Successive Reform Packages
The finance minister explained that the government is working on consecutive reform packages aimed at addressing multiple challenges in ways that deliver tangible, measurable improvements for taxpayers.
“We selected impactful measures that we can implement and monitor efficiently,” Kouchouk said, highlighting a focus on sustainability and service quality.
Planned measures for the coming period include:
- Expanding the issuance of clarifying tax guides
- Unifying and simplifying tax procedures
- Streamlining interactions between taxpayers and the tax administration
Technology, AI, and Policy Clarity
Kouchouk confirmed that a comprehensive tax policy strategy will be announced before the end of the current fiscal year to enhance tax certainty. He also emphasized the government’s commitment to using advanced technology and artificial intelligence to simplify procedures and improve the overall quality of tax services.
Support for Small Taxpayers and Investors
The minister noted that the simplified and integrated tax system for small taxpayers plays a crucial role in expanding the tax base. The second facilitation package, he said, will further support compliant taxpayers through greater flexibility, incentives, and faster processes.
Key elements include:
- Accelerated refunds, particularly VAT refunds
- Allowing offsetting of credit balances
- Applying stamp duty instead of capital gains tax
- Financial and tax incentives to encourage large companies to list on the Egyptian Exchange
- Deducting interest on foreign loans for companies involved in strategic national projects
VAT Cuts and Digital Real Estate Services
Additional measures within the package include:
- Exempting dividend distributions between Egyptian subsidiaries and locally resident holding companies to prevent double taxation
- Reducing VAT on medical devices from 14% to 5%
- Fixing the real estate transaction tax at 2.5% of the sale value, regardless of the number of transactions
In a significant step toward digital transformation, the minister announced the launch of a mobile application for real estate transactions, offering faster, simpler, and more accessible services for citizens.
Strengthening Dispute Resolution
Kouchouk also confirmed the renewal of the Tax Dispute Resolution Law, alongside enhanced capabilities to prevent and resolve disputes efficiently and impartially. He added that, for the first time, the ETA will authorize e-Tax to deliver selected taxpayer services through advanced service centers—an initiative aimed at delivering a qualitative improvement in service delivery.
