Building on Finance Minister Ahmed Kouchouk's December 2025 announcement, the Egyptian Tax Authority has detailed further measures in the second tax facilitation package, including full VAT exemptions for kidney dialysis inputs and services for transit trade, alongside a 5% rate on medical devices.
Rasha Abdel Aal, head of the Egyptian Tax Authority, has elaborated on the second package of tax facilitation measures first outlined by Finance Minister Ahmed Kouchouk last month. These amendments, aligning with directives to support key sectors, include:
- A reduced VAT rate of 5% (from 14%) on medical devices.
- Full VAT exemptions for inputs, components, and supplies used in kidney dialysis equipment and filters, aiming to support healthcare, ease citizen burdens, and boost local manufacturing.
Additional provisions extend VAT payment suspensions for industrial machinery, equipment, and medical devices up to four years, subject to Tax Authority approval for valid reasons.
Services on goods in transit are now VAT-exempt when transported under Customs Authority supervision and in compliance with Customs Law, to stimulate transit trade through Egypt.
Soap and industrial detergents for household use revert to the standard 14% VAT rate, with full input deductions allowed, following international best practices for tax neutrality.
These steps complement earlier incentives like company listing encouragements and small enterprise support, enhancing overall economic activity.