The Egyptian Tax Authority (ETA) is preparing to roll out the second phase of its tax facilitation initiative, following the resounding success of its first package, which generated EGP 80 billion in revenues and saw over 650,000 tax returns filed or amended without penalties.
The announcement was made by Rasha Abdel Aal, Head of the ETA, during a meeting with representatives from the Chinese business community, organized in cooperation with the Egyptian-Chinese Businessmen Association.
The new package will soon be released for public consultation, incorporating feedback from both state institutions and private-sector stakeholders. It forms part of the Ministry of Finance’s broader effort to streamline tax compliance, enhance voluntary disclosure, and deepen engagement with investors.
Building on the Success of the First Phase
The first tax facilitation package, launched under the Ministry’s campaign titled “A New Chapter,” offered taxpayers the chance to file or amend tax returns for the years 2020–2024 without facing late fees or penalties. The initiative was widely praised by business associations and foreign investors alike, and is credited with significantly boosting trust in Egypt’s tax administration.
“Real reform starts by identifying the challenges facing investors and setting clear priorities,” said Abdel Aal. “This approach shaped the first tax facilitation package, which proved instrumental in building trust with the business community.”
No New Waivers, But Stability Remains a Priority
While affirming the ETA’s commitment to facilitation, Abdel Aal clarified that there are no current plans to introduce new legislation to waive late fees. The existing legal framework, which caps penalties at 100% of the original tax due, remains in effect and is considered fair and sufficient.
Instead, the focus of the new phase will be on policy stability, digital engagement, and broadening the tax base by integrating informal economic actors into the formal system using digital platforms and risk-based monitoring tools.
Digital Transformation and Legislative Reform Since 2018
The ETA’s strategy since 2018 has rested on five key pillars:
- Digital transformation of core tax operations
- Legislative reform, including the Unified Tax Procedures Law
- Institutional development
- Capacity-building for employees
- Stakeholder engagement, particularly with the private sector
While significant progress has been made in digitalisation, Abdel Aal acknowledged that deeper engagement with taxpayers is still required to ensure the system reflects the realities and needs of Egypt’s dynamic business landscape.
Chinese Businesses Welcome Dialogue and Reform
The session was praised by Cao Huai, Managing Director of TEDA Egypt, who welcomed the continuous support from both the Egyptian and Chinese governments for joint economic projects. He described the meeting as a vital forum for open dialogue with the ETA.
Omar Wang, Executive Vice President of the Egyptian-Chinese Businessmen Association, reaffirmed the organization’s commitment to facilitating business operations for both Egyptian and Chinese companies. He highlighted the 2025 cooperation protocol signed with the ETA and a similar agreement with Egypt’s Customs Authority in 2023, aimed at removing procedural bottlenecks.
