Latest news with #LawNo.7of2025
Daily News Egypt
02-06-2025
- 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.
Zawya
27-02-2025
- Business
- Zawya
Egypt's ETA launches introductory guide to Tax Facilitation initiative
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.
