ETA operates on partnership principle with business community to resolve tax-related challenges: Chief
Abdel Aal noted that the state's tax relief measures aim to ease burdens on taxpayers, promote voluntary compliance, integrate the informal economy, and ensure tax fairness. She urged taxpayers to submit applications under Laws 5, 6, and 7 of 2025 before the 12 August deadline to benefit from incentives, settle their tax positions, and avoid legal penalties.
Mohsen El Gayyar, Head of the Integrated Communications Centre, explained that Law 7 of 2025—amending provisions of the Unified Tax Procedures Law—caps late-payment fines and additional tax at 100% of the original amount, regardless of the tax period. It also permits reconciliation of procedural violations without tax liabilities, such as late zero-filing returns.
El Gayyar added that the ETA has launched a support unit and advance ruling unit to provide consultations and feasibility studies with transparency, as well as a 24/7 grievance unit to handle complaints. The Authority has also published sector-specific guidance for tax officers and investor guides outlining rights, obligations, incentives, and facilities under the new laws, available on its official website.
Wael El-Sayed, Director-General of Income Tax Research, explained that Law 5 of 2025 waives penalties for filing or amending returns for 2020–2024. It also allows settlement of estimated assessments for pre-2020 periods by paying a percentage of tax for estimated cases, while audited cases require payment of the principal tax only—waiving all delay fines and additional taxes beyond that.
The Food Industries Chamber at the Egyptian Federation of Industries welcomed the meeting with the ETA, calling it timely for understanding recent legislative changes. Executive Director Maissa Hamza, speaking on behalf of Chamber President Ashraf El-Ghazairly, said that open communication between authorities and industry is key to building a stable business environment. She added that the tax relief measures mark a serious step toward creating a clearer, fairer legislative framework that supports investment and growth.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily News Egypt
4 days ago
- Daily News Egypt
ETA operates on partnership principle with business community to resolve tax-related challenges: Chief
Rasha Abdel Aal, Head of the Egyptian Tax Authority (ETA), has affirmed that the Ministry of Finance continues to provide guidance and oversight to reinforce the Authority's relationship with the business community. She stressed the ETA's commitment to listening to diverse viewpoints, studying partner needs, and working transparently under a partnership principle to address challenges. Abdel Aal noted that the state's tax relief measures aim to ease burdens on taxpayers, promote voluntary compliance, integrate the informal economy, and ensure tax fairness. She urged taxpayers to submit applications under Laws 5, 6, and 7 of 2025 before the 12 August deadline to benefit from incentives, settle their tax positions, and avoid legal penalties. Mohsen El Gayyar, Head of the Integrated Communications Centre, explained that Law 7 of 2025—amending provisions of the Unified Tax Procedures Law—caps late-payment fines and additional tax at 100% of the original amount, regardless of the tax period. It also permits reconciliation of procedural violations without tax liabilities, such as late zero-filing returns. El Gayyar added that the ETA has launched a support unit and advance ruling unit to provide consultations and feasibility studies with transparency, as well as a 24/7 grievance unit to handle complaints. The Authority has also published sector-specific guidance for tax officers and investor guides outlining rights, obligations, incentives, and facilities under the new laws, available on its official website. Wael El-Sayed, Director-General of Income Tax Research, explained that Law 5 of 2025 waives penalties for filing or amending returns for 2020–2024. It also allows settlement of estimated assessments for pre-2020 periods by paying a percentage of tax for estimated cases, while audited cases require payment of the principal tax only—waiving all delay fines and additional taxes beyond that. The Food Industries Chamber at the Egyptian Federation of Industries welcomed the meeting with the ETA, calling it timely for understanding recent legislative changes. Executive Director Maissa Hamza, speaking on behalf of Chamber President Ashraf El-Ghazairly, said that open communication between authorities and industry is key to building a stable business environment. She added that the tax relief measures mark a serious step toward creating a clearer, fairer legislative framework that supports investment and growth.
Daily News Egypt
5 days ago
- Daily News Egypt
Eight days left to benefit from tax relief, warns ETA
The Egyptian Tax Authority (ETA) has reminded taxpayers that only eight days remain to take advantage of the tax relief measures introduced under Law No. 5 of 2025, issued on 12 February as part of the government's first package of tax facilities. In a statement on Monday, the Authority explained that the law offers several incentives to taxpayers. These include settling disputes relating to tax periods before 1 January 2020; filing for assessment and paying due taxes on real estate disposals or transactions involving unlisted securities conducted in the five years preceding the law's enactment; and submitting original or amended tax returns for income tax covering 2020 to 2023, as well as value-added tax from 2020 to 2024. The ETA emphasised that these measures reflect the shared vision of the Ministry of Finance and the Authority to resolve outstanding disputes, alleviate taxpayers' burdens, and encourage voluntary compliance—ultimately opening a new phase based on partnership, certainty, and mutual trust. This approach is also designed to help integrate the informal economy into the formal system and contribute to achieving national development goals. The Authority further clarified that applications for the Integrated Tax System for Small and Micro Enterprises—with annual revenues below EGP 20m under Law No. 6 of 2025—can be submitted at any time, via the Authority's official website. However, to benefit from the tax amnesty on liabilities for periods prior to enrolment, taxpayers must register by 12 August. To support taxpayers, the Authority said it continues to raise awareness about the relief package and to offer free technical assistance. This includes on-site support teams at tax offices and centres, as well as daily online seminars, details of which are posted on the Authority's official Facebook page. Explanatory videos are also available on the Authority's website and YouTube channel, alongside a detailed guide to the tax facilities.
Daily News Egypt
6 days ago
- Daily News Egypt
ETA welcomes dialogue with business community to build trust, enhance tax system: Chief
Rasha Abdel Aal, Head of the Egyptian Tax Authority (ETA), held a meeting on Sunday with a delegation from the Egyptian-African Businessmen Association to explore avenues for cooperation and listen to the delegation's suggestions and concerns regarding challenges facing the business community. The meeting aimed to improve the tax system and achieve greater fairness. The meeting was held in line with directives from the Minister of Finance to maintain ongoing dialogue between the Tax Authority and all stakeholders within the tax ecosystem. Abdel Aal emphasised the authority's commitment to building trust with the business community by actively listening to their real concerns through institutionalised and regular dialogue. She noted that the Ministry of Finance and the Tax Authority continue to implement legislative and procedural reforms designed to simplify tax processes, enhance transparency, and encourage businesses in the informal sector to join the formal economy. She highlighted that the first tax relief package, launched in February 2025, represented a significant milestone in resolving longstanding disputes and clarifying tax procedures. Law No. 6 of 2025 introduced a simplified tax regime for businesses with an annual turnover not exceeding EGP 20m, offering fixed tax rates based on business size and broad exemptions to encourage small businesses to formalise. Abdel Aal added that the initiative also set a cap on late penalties at 100% of the original tax amount. Additionally, Law No. 5 of 2025 allows taxpayers to settle estimated tax assessment disputes for tax periods ending before 2020 by paying a portion of the tax owed. For audited tax cases, settlement remains possible by paying the principal amount, with a complete waiver of delay fines or additional tax. She stressed that the authority welcomes all compliant business owners and there is no need to fear tax procedures when there is transparency and full compliance. Abdel Aal also underlined the importance of dealing exclusively with registered taxpayers, whether in traditional transactions or digital platforms. Abdel Aal further explained that the integration of the electronic invoicing system with the risk management platform enables real-time detection of fraudulent invoices. Companies issuing such invoices are immediately blocked from the system, while those dealing with them are also flagged, with no recognition of these invoices permitted in input tax deductions. This approach, she said, supports tax fairness and helps prevent fraud. During the meeting, representatives of the Egyptian-African Businessmen Association commended the authority's reform measures and its expanding communication channels. They affirmed their commitment to supporting the state and increasing tax revenues as a vital source of funding for the national treasury. They described the recent relief measures as a genuine breakthrough, though they noted that certain practical challenges remain. The delegation explained that they approach these issues from a developmental perspective focused on public benefit and acknowledged what they saw as a positive shift in the authority's performance, particularly under Abdel Aal's informed and open leadership. Nevertheless, they pointed out practical difficulties facing honest taxpayers, such as mismatches between declared business volumes and actual tax assessments, and obstacles in recovering customs guarantees without first clarifying tax status. Among their proposals, the representatives suggested forming joint committees between the Tax Authority and the Customs Authority to address issues related to guarantee recovery. They also called for allowing the deduction of reasonable business expenses—such as transport and employee travel costs—even in the absence of official invoices, provided these expenses are proportionate to business size. In addition, they highlighted the importance of addressing the culture of fear associated with taxation. In response, Tax Authority officials listened carefully and pledged to work promptly to resolve the concerns raised by the association's members.
