Latest news with #AbdelAal
Daily News Egypt
4 days ago
- Business
- Daily News Egypt
Final deadline to benefit from Egypt's 2025 tax relief is 12 August: ETA chief
Rasha Abdel Aal, Head of the Egyptian Tax Authority (ETA), has confirmed that 12 August 2025 is the final deadline for businesses to benefit from the relief incentives provided under Law No. 5 of 2025. She urged business owners to take prompt action, as the authority intensifies efforts to engage the business community and raise awareness of the new measures. 'Our engagement with the business community is based on the principle of partnership and mutual benefit, in line with the state's development goals and citizens' aspirations,' said Abdel Aal. She added that hundreds of awareness seminars—both in-person and online—have already been held across Egypt, and these efforts will continue to foster a tax-conscious, voluntarily compliant society. She emphasized that the tax relief measures are time-limited and called on businesses to seize the opportunity to settle outstanding obligations under favorable terms before the deadline. 'This is a chance to open a new chapter based on trust, cooperation, and mutual support,' she said. Abdel Aal also highlighted targeted support for small and micro enterprises under the simplified tax system, applicable to businesses with annual revenues under EGP 20m. These entities are subject to a proportional tax—starting at 0.4% for revenues below EGP 500,000 and up to 1.5% for those under EGP 20m. Additional incentives and exemptions are available under Law No. 6 of 2025, including free technical support and access to operational tools provided by the authority. Abou Zeid Abdel Rahman, Director of Customer Service at the Large Taxpayers Centre and Head of the Integrated Call Centre, explained that Law No. 5 of 2025 waives all penalties related to the submission or amendment of tax returns for the years 2020 to 2024. The law also enables the resolution of disputes from earlier tax periods—ending before 2020—through partial payment of assessed taxes. For businesses with audited accounts, full exemption from late payment interest and additional tax is granted upon payment of the original tax owed. Mohsen El-Gayar, Head of Customer Service for the Suez Canal cities, added that Law No. 7 of 2025, which amends parts of the Unified Tax Procedures Law, limits late payment interest and penalties to no more than the original tax due, regardless of the tax period. The law also allows reconciliation in procedural violations not involving tax liabilities—such as the failure to submit nil returns on time. He also announced enhancements to the Investor Support Unit, the launch of a Pre-Ruling Unit for consultations and feasibility reviews, and a 24/7 complaints unit to provide rapid resolution of taxpayer concerns. New sector-specific audit guidelines and investor-focused manuals are now available on the Egyptian Tax Authority's official website, offering clear information on obligations, entitlements, and incentives. Mohamed Abdel Aziz Amer, Head of the Badr Development Authority, commended the tax authority's outreach and awareness campaign, describing the reforms as a 'remarkable shift in tax policy thinking.' He urged investors in Badr City and beyond to capitalize on the available incentives to support long-term growth and expansion.
Daily News Egypt
15-05-2025
- Business
- Daily News Egypt
Egypt launches specialized tax units to boost business confidence
Rasha Abdel Aal, Head of the Egyptian Tax Authority (ETA), has announced the establishment of several specialized units designed to support businesses and streamline tax processes. The new units—Investor Support, Advance Tax Rulings, and Tax Complaints—form part of a broader initiative to enhance responsiveness to investors and improve the overall tax environment. The Investor Support Unit aims to simplify procedures and foster a more investment-friendly climate. The Advance Tax Rulings Unit allows taxpayers to request binding, official interpretations of their tax obligations before conducting transactions. Meanwhile, the Tax Complaints Unit will handle taxpayer grievances promptly and professionally. The announcement came during the Tax Facilitation Package Conference in Damietta, held under the auspices of the Future of the Nation Party and in coordination with the Tax and Customs Committee of the Federation of Egyptian Industries. The event brought together regional tax office leaders, business figures, manufacturers, craftsmen, and representatives from industry chambers. Abdel Aal highlighted the significant tax system reforms launched in 2018 by the Ministry of Finance and the ETA, including the introduction of electronic tax returns, a core tax system upgrade, e-invoicing, e-receipts, unified wage tax calculations, and improved digital infrastructure integrated with government systems. 'While we've made considerable progress—recognized both locally and internationally—we paused last July to assess our achievements and address challenges,' she said. 'This led to the rollout of the first phase of the Tax Facilitation Package, which aims to create a more just, efficient, and transparent tax framework.' A cornerstone of this reform is a simplified tax system for businesses with annual revenues up to EGP 20m. Under Ministerial Decree No. 167 of 2025, businesses enrolling by 12 August 2025 will be exempt from past tax liabilities. The new system eliminates complex bookkeeping and returns, calculating income tax as a fixed percentage of turnover and applying uniformly across all sectors. Businesses exceeding the EGP 20m threshold will transition to the general tax regime but still benefit from initial simplified entry. To enroll, taxpayers must submit Form 1/10 via the ETA website and opt into the system under Law No. 6 of 2025. Participants must also file simplified returns, join the e-invoice and e-receipt systems where applicable, and follow unified wage tax guidelines. Notably, enrolled businesses will be exempt from tax audits for five years. Additional relief includes quarterly VAT filings and annual payroll tax submissions, reducing administrative burdens. Late payment penalties are also capped at 100% of the original tax due. Abdel Aal concluded by reiterating the ETA's commitment to building a fair and supportive tax environment that promotes transparency, facilitates compliance, and encourages investment across Egypt.
Daily News Egypt
10-05-2025
- Business
- Daily News Egypt
1.5 billion e-documents uploaded to Egypt's e-invoicing system: ETA chief
Rasha Abdel Aal, Head of the Egyptian Tax Authority (ETA), announced that the national e-invoicing system has recorded significant growth, with approximately 1.5 billion electronic documents uploaded to date. She emphasized that enrolling in the e-invoice system is now a prerequisite for businesses seeking to benefit from the simplified tax regime introduced under Law No. 6 of 2025. This law applies to enterprises with annual revenues of up to EGP 20m, offering streamlined procedures and a simplified method for calculating tax obligations. Abdel Aal highlighted that, effective July 1, 2023, only electronic invoices are accepted as valid documentation for expense deductions and VAT refund claims. This mandate makes it critical for all taxpayers to comply with the relevant phase of mandatory enrollment in either the e-invoicing or e-receipt platform, depending on the nature of their business activity. To support this transition, the Tax Authority regularly hosts online awareness seminars, with schedules published on its official Facebook page and website. These sessions are designed to guide taxpayers through the registration process and integration with the digital platforms. Abdel Aal also urged taxpayers to utilize the Digital Transformation Support Center at the ETA, which offers full technical assistance and responds to inquiries through various channels, including a dedicated hotline. The center aims to facilitate a smooth and accessible shift to digital tax compliance. She described the e-invoicing initiative as a major evolution in the relationship between the Authority and the business community. The system contributes to building a comprehensive and accurate tax database, enhances oversight, fosters fairness, reduces tax evasion, and supports the integration of the informal economy into the formal sector. It also aligns Egypt's tax practices with international standards. Abdel Aal concluded by highlighting the numerous benefits of compliance with the e-invoicing system, including easier expense verification, faster VAT refunds, lower audit risk, and streamlined audit procedures. She noted that the system improves recordkeeping, enhances operational efficiency, and strengthens trust between businesses and clients.
Daily News Egypt
08-05-2025
- Business
- Daily News Egypt
Tax Authority prepares comprehensive guide on exported services: Abdel Aal
Rasha Abdel Aal, Head of the Egyptian Tax Authority (ETA), has announced that a comprehensive guide on the tax treatment of exported services is currently under preparation. The guide aims to provide a unified, accurate, and widely accepted reference for businesses and tax professionals, addressing ongoing ambiguities in the tax system. Her remarks came during a virtual seminar hosted by Deloitte Egypt, which brought together representatives from companies, tax consultants, and experts to discuss recent tax facility initiatives introduced by the government to support the business environment and simplify procedures. Abdel Aal explained that earlier directives issued to clarify the taxation of exported services had inadvertently created confusion during implementation, leading to their cancellation—a move broadly welcomed by the professional community. She emphasized the importance of direct engagement with taxpayers as a core strategy to resolve challenges and ensure practical, transparent tax administration. She noted that the first phase of tax facilities has delivered measurable benefits, including improved voluntary compliance, higher tax revenue, and a significant number of taxpayers filing amended returns to benefit from the new provisions. These measures have also helped settle a large number of outstanding tax disputes and strengthened trust between the Tax Authority and the business community. VAT refunds, Abdel Aal said, remain a top priority for the Authority and receive direct oversight from the Minister of Finance. As part of the current reforms, the Tax Authority aims to increase the volume of VAT refund cases by three to four times, with recent changes already reducing average processing time to about 22 days. However, she acknowledged that challenges remain and called on taxpayers to submit accurate and complete documentation—now clearly outlined on the Authority's website—to further streamline the refund process. Abdel Aal reiterated that effective implementation is essential to successful tax policy. From the launch of the tax facility package, the Authority has focused on promoting tax fairness, ease of compliance, and constructive partnership with taxpayers across all provinces. She also highlighted efforts to support small enterprises with annual revenues of up to EGP 20m through a simplified tax system. This is part of a broader strategy to encourage businesses in the informal sector to integrate into the formal economy. The simplified framework aims to ease both tax and procedural burdens, but participation requires registration in the electronic invoicing and receipt systems. To support this transition, the Ministry of Finance and the Tax Authority are providing technical assistance and training to help small businesses adopt the system. This includes facilitating electronic signature issuance, offering point-of-sale (POS) devices, and covering associated costs—all aimed at accelerating the digital transformation of commercial operations and enhancing tax compliance. Abdel Aal also underscored the important role of certified accountants in supporting the tax system. She announced the activation of a pre-ruling system that provides binding guidance on the tax implications of future transactions, helping investors make informed decisions and comply with tax laws with greater certainty. She further noted that the Authority is addressing issues related to the registration of virtual permanent establishments. Coordination between the General Directorate of International Agreements and the Corporate Tax Department is underway to streamline the registration process. New instructions on registration and profit allocation for virtual permanent establishments—aligned with international standards—are also under consideration.
Zawya
29-04-2025
- Business
- Zawya
Three days left to file corporate taxes before deadline: Egypt's ETA chief
Egypt - Rasha Abdel Aal, Head of the Egyptian Tax Authority (ETA), announced that only three days remain until the end of the 2024 corporate tax filing season, confirming that tax returns will be accepted until 30 April. She stressed that this deadline is not subject to the extensions granted under the tax facilitation package initiative. Abdel Aal emphasised the daily monitoring efforts and continuous guidance provided by Minister of Finance Ahmed Kouchouk, aimed at easing the filing process and promoting voluntary compliance among taxpayers. She underscored the importance of adhering to the official deadline for submitting income tax returns for the 2024 tax year. To support taxpayers, Abdel Aal noted that the Authority has implemented a comprehensive assistance plan. This includes free daily seminars for taxpayers and accountants, led by top-level instructors, to explain procedures, assist with filings, and address any queries. Dedicated support committees have also been deployed across professional syndicates, civil society organisations, chambers of commerce, and federations to facilitate the process. Rasha Abdel Aal, Head of the Egyptian Tax Authority (ETA) She further highlighted the services of the Digital Transformation Support Centre in Lazoghly, which offers technical assistance for electronic tax filing. The centre is equipped with the latest technological resources and staffed by a specialised team providing immediate support to users. Abdel Aal urged all taxpayers to submit their returns promptly through the Egyptian Tax Authority's electronic platforms, taking advantage of the full suite of free technical support services. She specified that taxpayers registered with the First and Second Large Taxpayers Centres, the Major Liberal Professions Centre in Cairo, the Large and Medium Taxpayers Centres for Upper and Lower Egypt (located in Alexandria and Hurghada), the Medium Taxpayers Centre, and those under the integrated districts of Cairo First, Cairo Second, Cairo Third, Cairo Fourth, and the Qalyubia Tax Region must file via the new Main Tax Business Platform available through the Authority's website. Other taxpayers should submit their returns through the Tax Services Portal. She also noted that seminar appointments can be arranged by contacting the Authority via email. In conclusion, Abdel Aal reminded taxpayers that the Authority can be reached through multiple communication channels, including the hotline, YouTube, Facebook, Twitter, Instagram, and LinkedIn.
