Head of the Egyptian Tax Authority (ETA), Rasha Abdel Aal, said Egypt’s second package of tax facilitation measures places strong emphasis on supporting compliant taxpayers, particularly through faster value-added tax (VAT) refunds, expanded eligibility, higher refundable amounts, and simplified procedures.
The package comprises 26 measures and builds on the results of the first facilitation package, which Abdel Aal said contributed directly to increased voluntary tax compliance.
Abdel Aal made the remarks during a conference organized in cooperation with the Austrian Chamber of Commerce and Austrian companies operating in Egypt. She noted that the Minister of Finance attaches significant importance to the role of civil society institutions and the business community in supporting economic growth.
She explained that the positive outcomes achieved through the first package provided a strong incentive to introduce a second phase. The new measures were presented for societal dialogue to collect feedback from development partners, address practical challenges, and reinforce principles of partnership and transparency.
Incentives for SMEs and Simplified Tax Regime
Abdel Aal highlighted additional incentives offered to businesses joining the simplified tax regime, including access to financing programs coordinated with the Micro, Small and Medium Enterprise Development Agency (MSMEDA). These incentives complement the provisions of Law No. 6 of 2025, which applies to projects with annual turnover not exceeding EGP 20m and introduces a graduated income tax scale with a maximum rate of 1.5%.
She said the law aims to reassure taxpayers, encourage integration into the formal economy, broaden the tax base, and enhance fiscal sustainability.
Digital Transformation and Tax Services
As part of the Authority’s digital transformation agenda, Abdel Aal announced the launch of a mobile application for real estate disposal tax, enabling individuals to notify the ETA of transactions, pay the 2.5% tax electronically, and obtain tax clearance through a simplified process.
She also referred to the establishment of an electronic consultation platform that allows the business community to submit feedback on draft laws, decisions, and ETA issuances prior to their release.
Abdel Aal pointed to recent upgrades in the central clearing system, which now facilitate electronic offsetting between taxpayers’ credit and debit balances. She also announced the issuance of a comprehensive guideline on the tax treatment of exported services in line with international standards, as well as the start of work on mechanisms to separate commercial audits from transfer pricing audits. A new stage has been introduced to review taxpayers’ appeals related to transfer pricing examinations.
Premium Tax Service Centers and Sector Support
The ETA head further announced the launch of premium tax service centers, designed to streamline procedures, reduce congestion, and eliminate long waiting times. She said the centers aim to present the Tax Authority as a supportive partner to economic activity.
According to Abdel Aal, the centers will offer a fully integrated range of services under one roof, including tax registration, awareness of facilitation measures, investor support, and technical assistance for digital systems such as e-invoicing and e-receipts, effectively applying a one-stop-shop model.
She added that the second package also includes measures targeting key sectors. In tourism, departure fees will be unified in response to sector demands. In industry, the development fee on cement will be unified across all types, including white and black cement, marking a shift in the approach to sector-related fees.
Abdel Aal stressed that the ETA will continue to receive and address issues raised by the tax community. During the conference, ETA officials responded to technical inquiries from participants, including representatives of Austrian investors in Egypt, reinforcing mutual trust between the Ministry of Finance, the Tax Authority, and the investment community.
