Egypt’s Tax Authority (ETA) is intensifying its national awareness campaign to promote a sweeping package of tax incentives and procedural simplifications, designed to integrate the informal economy into the formal sector and expand the country’s tax base.
ETA Chair, Rasha Abdel Aal, confirmed that the government is “knocking on the doors” of the business community across the country to explain the benefits of the first phase of new tax relief measures, aimed at achieving a more equitable and inclusive tax system.
The authority’s outreach efforts recently extended to Luxor and North Sinai, where a seminar was held in partnership with the local Chamber of Commerce. Abdel Aal emphasized that the campaign supports the broader goal of enhancing national development through better compliance and expanded tax participation.
“Our hands are extended in partnership with the business community. These exceptional incentives offer a rare opportunity to regularize tax positions and benefit from substantial exemptions,” she said.
Key Deadlines and Eligibility Under New Tax Laws
As part of the first phase of implementation under Law No. 5 of 2025, businesses and individuals have until August 12, 2025, to take advantage of several critical provisions:
- Dispute settlements for tax periods before January 1, 2020
- Disclosure and payment of tax liabilities related to real estate or non-listed securities transactions conducted over the past five years
- Filing or amending tax returns for income tax (2020–2023) and VAT (2020–2024)
Under Law No. 160 of 2024, tax dispute resolutions for any previous period are available until June 30, 2025.
Additionally, Law No. 6 of 2025, which introduces a new integrated tax regime for small and micro enterprises with annual revenues of up to EGP 20 million, is now in effect. Enrollment is available through the Tax Authority’s official website.
Unprecedented Benefits for Small Businesses
According to Dr. Mohsen El-Gayar, General Manager of Customer Services for the Canal Cities Region, the reforms offer unprecedented relief, especially for small businesses joining the formal system for the first time. These include:
- Full exemption from prior tax dues for newly registered entities
- Graduated income tax rates starting at just 0.4% of annual revenues for businesses below EGP 500,000, capped at 1.5% for revenues under EGP 20 million
- Exemptions from stamp duty, development fees, notary fees, capital gains taxes, and dividend taxes
- Quarterly rather than monthly VAT filing
- No tax audits for five years following enrollment under the scheme
Dr. El-Gayar noted that the only conditions for eligibility are timely e-filing of tax returns and adherence to the government’s digital tax platforms.
Local Support for Investors and Traders
In North Sinai, MP Aziz Matar, Chairman of the Chamber of Commerce, praised the reforms as a strategic move to attract foreign direct investment, stimulate local enterprise, and alleviate the financial burden on domestic traders.
The Chamber has partnered with the Tax Authority to set up a dedicated office to assist in preparing and submitting tax filings, alongside educational services on the latest incentive packages.
Reform Agenda Tied to Economic Modernization
These reforms are part of Egypt’s wider fiscal strategy aimed at increasing tax efficiency, improving the ease of doing business, and enhancing transparency. The effort also aligns with the government’s goal of boosting public revenues without raising tax rates, by tapping into the informal sector, which is estimated to account for over 40% of economic activity in Egypt.
