The Egyptian Tax Authority (ETA) participated in the annual tax conference hosted by Ernst & Young (EY) Egypt, exploring recent shifts in tax policy and their impact on investment and economic growth. Officials highlighted efforts to modernize Egypt's fiscal framework and strengthen ties with the business community.
At the recent conference, Rasha Abdel Aal, Head of the Egyptian Tax Authority (ETA), emphasized the importance of specialized dialogues with the business community to enhance communication and highlight government initiatives for improving the investment climate. She noted the Authority's commitment to exchanging technical expertise, fostering private-sector partnerships, and implementing comprehensive tax reforms in line with Ministry of Finance directives.
Ragab Mahrous, Advisor to the ETA Head, outlined the second package of tax facilitation measures, built on procedural enhancements and legislative amendments. Key among them is the renewal of the Tax Dispute Resolution Law to clear the backlog of cases accumulated since mid-2025. New legislation also allows recent tax periods to use the lump-sum tax system under Law No. 30 of 2023, benefiting small projects with revenues below EGP 20 million starting from 2025.
To bolster capital markets, the tax treatment of listed securities has shifted to stamp duty from capital gains tax, aiming to simplify accounting and encourage institutional investment. Listed companies may receive tax incentives for an initial three-year period, potentially extendable to six years based on performance metrics like trading volume and expansion.
Ashraf El-Zayat, Head of the Tax Audit Sector, stressed a shift toward a trust-based relationship with businesses, including an accelerated VAT refund system via a central clearing mechanism with a maximum 20-day timeline. Adjustments include reducing VAT on medical devices from 14% to 5% and fully exempting dialysis machine components, while household soaps and industrial detergents move to the standard 14% rate, enabling full input deductions.
Soheir Hassan, Head of the First Large Taxpayers Centre, highlighted digital transformation benefits, such as an upcoming mobile app for real estate transactions. The ETA is expanding service centers in New Cairo, New Alamein, and Sheikh Zayed, alongside the Tax Excellence Card for compliant taxpayers offering priority services. Afaf Ibrahim, Assistant to the ETA Head, discussed separating transfer pricing audits from standard commercial ones for more effective implementation.