In a strong commitment to fostering a better relationship with the business community, Rasha Abdel Aal, Head of the Egyptian Tax Authority (ETA), has highlighted the authority’s ongoing efforts to address the challenges faced by businesses and improve tax dealings. Speaking at a seminar organized by the American Chamber of Commerce in Cairo, Abdel Aal emphasized that the Minister of Finance is actively overseeing efforts to strengthen cooperation and resolve business concerns.
“We operate on a partnership principle with the business community to remove obstacles and support its growth,” Abdel Aal said, reaffirming the ETA’s dedication to transparency and collaboration. She also underscored the importance of reshaping public perception of the tax authority and building a more transparent and fair tax system in Egypt.
As part of these efforts, the ETA has introduced its first tax facilitation package, consisting of 20 key provisions designed to maximize benefits for businesses, ensure transparency, and address long-standing tax system issues.
The Egyptian Parliament has already given its backing to these initiatives by approving new tax incentives and facilitation laws. One of the notable reforms includes raising the maximum threshold for small enterprises from EGP 15 million to EGP 20 million. Additionally, the first tax audit for these businesses will not take place until five years after their establishment. A new proportional tax treatment for income tax has also been introduced to build trust and fairness in the tax system.
Other reforms include extending the period for submitting amended tax returns to five years (2020–2024) and capping late penalties at 100% of the original tax amount, providing further incentives for businesses to comply with the system.
In her address, Abdel Aal also pointed to the expansion of the Investor Support Unit, as well as the creation of two new units within the ETA: one for Advance Tax Rulings and another dedicated to handling Complaints. These units will report directly to the Head of the Authority and aim to streamline services for investors and businesses.
A new comprehensive investor guidebook has also been launched to help businesses navigate the complexities of tax procedures. Additionally, the ETA is working to eliminate arbitrary tax assessments by standardizing the examination procedures for tax inspectors. Pre-audit consultations will also be introduced, allowing businesses to clarify the required documentation in advance, reducing disputes and ensuring smoother compliance.
With these reforms and initiatives, the Egyptian Tax Authority is striving to create an environment where businesses can thrive, supported by a clearer, more transparent, and fair tax system. The partnership approach reflects the ETA’s commitment to addressing the needs of the business community and ensuring the continued growth and development of Egypt’s economy.
