Egypt's ETA launches introductory guide to Tax Facilitation initiative

Zawya

27-02-2025

Egypt - Rasha Abdel Aal, Head of the Egyptian Tax Authority (ETA), has announced the release of an introductory guide for the Tax Facilitation Initiative. This guide provides a comprehensive explanation of the initiative's provisions, eligibility criteria, and step-by-step procedures, ensuring that every taxpayer and entity can fully understand how to benefit from the new facilities.
The initiative aims to significantly improve taxpayers' compliance, resolve tax disputes effectively and quickly, and establish a more cooperative relationship between the tax community and the government.
The first edition of the guide is now available on the Tax Authority's website in a clear and simple format, using accessible language to maximize understanding and benefit for all taxpayers. Abdel Aal emphasized that the guide will be continuously updated to reflect developments in tax laws and procedures, ensuring taxpayers have access to the latest information and guidance.
To expand its reach and ensure the broadest possible dissemination, copies of the guide have been sent to all tax and civil society institutions, including chambers of commerce, unions, business associations, and other relevant organizations. This initiative is part of a broader effort to enhance awareness of the available benefits and facilities, allowing taxpayers to make informed decisions regarding their tax status and obligations.
The guide includes a detailed explanation of the settlement procedures for taxpayers or entities as outlined in Law No. 5 of 2025. This law allows for the waiver of all tax dues accrued before its effective date without any penalties or financial sanctions, enabling taxpayers to start with a clean slate and fully benefit from the law's advantages. The guide further elaborates on the necessary steps required to take advantage of these features, including ways to resolve tax disputes and the benefits offered for real estate transactions and dealings with securities not listed on the stock exchange.
Abdel Aal also highlighted the tax incentives and facilities available under Law No. 6 of 2025 for projects with an annual business volume not exceeding EGP 20m. This includes an income tax rate starting at 0.4% for businesses with revenues below EGP 500,000, increasing up to 1.5% for businesses with revenues ranging from EGP 10m to EGP 20m. Additionally, the guide specifies that the first tax audit for such businesses will take place five years after their initial submission date, reducing administrative burdens and encouraging compliance.
Moreover, the guide covers amendments introduced under Law No. 7 of 2025 to the Unified Tax Procedures Law, including the introduction of a maximum cap for delay fees and additional taxes, ensuring that they do not exceed 100% of the original tax owed. It also outlines a range of facilities provided by the Tax Authority, such as the establishment of investor support units, advance tax rulings, tax complaint mechanisms, and improvements to existing tax systems like the central clearing system and the VAT refund process. These measures aim to enhance efficiency, save time, and improve liquidity for taxpayers and businesses.
The Head of the Tax Authority described the Tax Facilitation Initiative as a 'Partnership Token' with the business community, reinforcing the government's commitment to fostering trust, cooperation, and economic stability. She emphasized that this package is just the beginning, with successive facilitation packages planned to uphold the principle of partnership and ensure the continued growth and satisfaction of the tax community.
She further stated that these tax incentives and facilities present a genuine opportunity for investors, entrepreneurs, and small businesses to thrive within a supportive and transparent tax system that fosters investment and economic expansion. Through a well-structured and accessible tax framework, the initiative seeks to drive growth in small and micro enterprises while achieving broader developmental goals for the state and investors. The Tax Authority remains committed to introducing additional facilitation packages in the future, continuously enhancing tax policies to support economic progress and stability.