A Press Release By The Egyptian Tax Authority On That Event January , 2025
In a press release issued by the media unit of the Egyptian Tax Authority, Rasha Abdel-Aal, the head of the Egyptian Tax Authority, affirmed during her meeting with members of the Egyptian-Belgian Businessmen Association that Finance Minister Ahmed Kouchouk places great importance on continuous communication with civil society organizations and listening to their perspectives and needs in order to overcome the challenges they face. This aligns with the Ministry's policy aimed at achieving integration between the state and the business community and strengthening the principles of partnership and transparency.
The head of the Egyptian Tax Authority explained that the first package of tax incentives has achieved tangible success in raising voluntary compliance rates. She noted that the Authority has already begun addressing the challenges that have accumulated over the years, with a genuine commitment to achieving a fair and stable system.
Rasha Abdel-Aal reviewed the advantages of Law No. (6) of 2025 concerning establishments whose annual turnover does not exceed EGP 20 million. The law offers a tiered tax rate system starting from 0.4% and reaching a maximum of 1.5%. She emphasized that the goal is to reassure taxpayers and encourage them to join the formal economy, thereby broadening the tax base.
Rasha indicated that the second package of tax incentives, comprising 26 items, has been opened for public discussion in preparation for its official launch in the coming days. She noted that it focuses primarily on supporting compliant taxpayers, reducing the timeframe for VAT refunds, and simplifying related procedures. She also announced the imminent launch of the "Tax Excellence Card," which will provide compliant taxpayers with an expedited process for completing procedures and accessing tax services such as the Pre-Opinion Unit and investor support.
In the context of digital transformation, the head of the Tax Authority announced the launch of a mobile application for real estate transaction tax. This application allows individuals to notify authorities of their transactions, pay the tax (at a rate of 2.5%) electronically, and easily obtain their tax clearance certificates. Additionally, an online consultation platform has been established, enabling the business community to provide feedback on draft laws and decrees before their official issuance.
She added that the package also includes the development of a central clearing system to facilitate electronic clearing between taxpayers' credit and debit balances. Furthermore, the Authority has issued a comprehensive guide to taxing exported services in accordance with international standards. The Authority also announced the separation of "commercial audits" from "transfer pricing" audits and the introduction of a new stage for reviewing taxpayer appeals.
Regarding legislative reforms to support the health sector and stimulate transit trade, Rasha Abdel-Aal explained that the second package includes amending the Value Added Tax (VAT) law to reduce the tax rate on medical devices to 5% instead of 14%, exempting inputs (supplies, parts, and equipment) for dialysis and kidney filters from VAT, and subjecting household detergents to the standard rate (14%) to enable manufacturers to deduct all production inputs.
Adding to the advantages offered in the second package, services provided for goods in transit will not be subject to VAT, provided that the transport is carried out under the supervision of the Customs Authority and in accordance with the regulations stipulated in the Customs Law. This is part of supporting and stimulating transit trade within the Arab Republic of Egypt.
Rasha Abdel-Aal also revealed a plan to expand tax service centers, with the launch of three new centers in New Cairo, New Alamein City, and Sheikh Zayed City, to provide a high level of automated service.
The head of the Egyptian Tax Authority concluded the meeting by emphasizing the continued commitment of the joint committees to promptly address and resolve the taxpaying community's concerns. During the session, all inquiries from members of the Egyptian-Belgian Business Association were answered, reinforcing mutual trust between the state and investors.
Representing the Egyptian-Belgian Business Association were: Rafik Attia, Chairman of the Board; Ashraf Al-Abhar, Board Member; and Belgian Ambassador Bart De Groof.
Also present from the Egyptian Tax Authority were: Saeed Fouad, Advisor to the Head of the Authority; Ragab Mahrous, Advisor to the Head of the Authority; Dr. Ashraf El-Zayat, Head of the Inspection Sector; Sohair Hassan, Head of the Large Taxpayers Center; Abdel-Latif Abdel-Rahman, Head of the Central Administration for Resource Development and Stamp Duty; Dr. Afaf Ibrahim, Assistant to the Head of the Authority; Maha Ali, Director General of the Website and Head of the Media Unit at the Head of the Authority's Office; Ahmed Bahiri, Director General of Internal Audit; Mustafa Kosh, Director General of the Technical Office of the Head of the Authority; and Amr Farouk, Director General of Collection at the Large Taxpayers Center.
Photo Gallery of the Event
(Click on image to enlarge)