President Abdel Fattah El-Sisi has ratified a series of legislative measures designed to streamline tax processes and provide relief to various taxpayer segments. This initiative marks a significant stride in Egypt’s ongoing economic reform agenda, highlighting its commitment to creating a more dynamic, investor-friendly environment.
Legislative Overview:
- Law No. 5 of 2025 addresses the settlement of taxpayer statuses, aiming to resolve existing disputes and promote a fair tax environment.
- Law No. 6 of 2025 introduces tax incentives for projects with an annual turnover not exceeding 20 million Egyptian pounds, targeting small and medium-sized enterprises (SMEs) as a catalyst for economic growth.
- Law No. 7 of 2025, an amendment to the Unified Tax Procedures Law, seeks to enhance transparency and efficiency in tax procedures.
On the other hand, Rasha Abdel Aal, the Head of Egypt’s Tax Authority, has announced the successful development of a comprehensive guide tailored for both existing and prospective investors. This guide aims to simplify the understanding and execution of tax-related activities, thereby enhancing clarity and efficiency in tax transactions.
During a seminar hosted by the American Chamber of Commerce in Cairo, in collaboration with the Tax Authority, Abdel Aal highlighted the Authority’s commitment to eliminating arbitrary tax assessments. This will be achieved by standardizing examination methods and providing clear guidelines for examiners. The Authority is also keen on resolving issues with taxpayers proactively, by outlining the necessary documentation requirements before tax examinations commence.
Abdel Aal emphasized the ongoing efforts directed by the Minister of Finance to strengthen the relationship between the Tax Authority and the business community. This involves actively listening to business concerns, studying their challenges in tax dealings, and working towards viable solutions. She insisted that the Authority is dedicated to reshaping its public image by fostering a collaborative approach with the business sector. “Together, we can start afresh, extending our hands to our partners, seeking your support and cooperation as we move forward,” she stated.
She further noted that there has been a concerted effort to keep all stakeholders informed about the new tax concessions package, which features 20 key items designed to promote justice and transparency in the tax environment. The comprehensive legislative support from the House of Representatives, through the approval of laws on tax incentives and facilities, underscores the government’s determination to implement these reforms swiftly and effectively.
