Egypt: ETA holds key meetings with professional syndicates to optimize new tax benefits

Zawya

24-03-2025

Egypt - Rasha Abdel Aal, the Head of the Egyptian Tax Authority (ETA), has conducted a comprehensive meeting with representatives from the syndicates of doctors, engineers, veterinarians, dentists, and pharmacists to outline the first phase of the new tax relief initiative and provide guidance on how members can fully benefit from these tax incentives.
This initiative is part of the Ministry of Finance and ETA's ongoing efforts to ease tax burdens and support taxpayers, in alignment with Finance Minister Ahmed Kouchouk's directives to hold direct discussions with syndicate representatives to ensure their participation in the new tax benefits.
During the meeting, Abdel Aal highlighted the ETA's commitment to enhancing collaboration with professional syndicates, ensuring their members take full advantage of the tax relief measures. She emphasized that the authority has made available a detailed guide on its website, alongside a series of explanatory videos designed to simplify the tax relief procedures and promote transparency, helping taxpayers and registrants navigate the process with ease.
Abdel Aal also discussed the tax relief package, which prioritizes resolving tax disputes through flexible mechanisms that allow taxpayers to settle existing disputes and benefit from prescribed exemptions. She explained that under Law No. 5 of 2025, taxpayers can now submit requests to resolve tax disputes for previous periods up to 1 January 2020, and benefit from a potential 100% waiver on late fees or additional taxes, provided the principal tax is settled within the designated period. The law further provides special provisions for estimated tax audits, enabling taxpayers to settle disputes and pay due taxes with the option of paying in four quarterly instalments without interest.
In cases where the audit covers declared taxes, taxpayers can resolve disputes by paying only 30% of the due tax according to the declaration, in addition to the declared tax itself. If the audit covers periods with no declared taxes or those resulting in losses, disputes can be settled by paying the tax due under the most recent agreement, plus an additional 40% of this amount. The law allows taxpayers to submit original or amended returns for the years 2020 through 2024 within six months from 13 February 2025, without penalties or financial sanctions, as per the Unified Tax Procedures Law or any other applicable tax law.
Abdel Aal clarified that these provisions do not apply to income tax returns for 2024 but to other taxes, allowing taxpayers to adjust their tax filings and enhance voluntary compliance with minimal additional burden. She also discussed a simplified tax system for businesses with annual revenues of up to EGP 20m, designed to streamline tax compliance processes and reduce administrative burdens. This system sets tax rates based on revenue brackets: 0.4% for revenues under EGP 500,000, 0.5% for revenues under EGP 2m, 0.75% for revenues under EGP 3m, 1% for revenues under EGP 10m, and 1.5% for businesses with revenues between EGP 10m and EGP 20m.
Abdel Aal confirmed that this system exempts businesses from certain tax obligations, such as maintaining complex accounting records, allowing them to use simplified accounting methods. Additionally, businesses can submit simplified tax returns according to the forms issued by the ETA. The system also grants further exemptions, including relief from stamp duty, state financial resource development fees, and documentation fees for company incorporation contracts and credit facilities. These incentives aim to encourage small and medium enterprises to formalize their operations and take advantage of the tax benefits available.
To benefit from this simplified tax system, taxpayers must adhere to electronic tax systems, including submitting tax returns and following the mandatory electronic invoice and receipt systems. The ETA will provide full technical support free of charge for businesses transitioning to the electronic systems, including providing point-of-sale devices required for the receipt system in accordance with implementation phases, ensuring no additional financial strain on taxpayers due to compliance.
Abdel Aal also underscored the significant role played by the Investor Support Unit in implementing the tax relief initiative, providing essential technical support to investors, resolving issues, and simplifying tax procedures related to registration, auditing, and payment. The Unit offers consultations, addresses investor inquiries, and facilitates the resolution of tax challenges, contributing to a more stable and attractive tax environment. The Unit's services, including submitting and tracking requests, are now available electronically via the ETA website.
Additionally, the ETA has developed several tax audit guidelines to standardize audit procedures across different sectors. Abdel Aal called for the collaboration of all professional syndicates in executing an awareness campaign about the new tax facilities, stressing the importance of direct engagement to ensure that members across various governorates are informed. She emphasized that syndicates should assist in organizing workshops and training sessions on tax facilities and should make space available for ETA teams to provide technical assistance. These workshops will guide members on how to benefit from the tax relief initiative and complete necessary procedures to join the integrated tax system. She concluded that the initiative's success hinges on robust cooperation with syndicates to ensure maximum participation and benefit for the tax community.
Syndicate representatives lauded the first phase of the tax relief initiative, calling it a significant step forward. They expressed a desire to engage in discussions for the second phase before its issuance, and urged that the new tax measures take into account the human consumption factors of professionals, ensuring the facilities are genuinely beneficial and aligned with the realities of their work.