Egypt Unveils Second Tax Relief Package to Boost Investment, Ease Burdens
New measures include VAT cuts, capital market reforms, and digital services.
Egypt’s Tax Authority Head, Rasha Abdel Aal, announced a second package of tax facilities, aligning with Finance Minister Ahmed Kojok’s directives to bolster the investment climate and alleviate burdens on taxpayers. The initiative aims to foster a partnership built on trust and voluntary compliance.
Abdel Aal elaborated that Minister Kojok underscored the importance of engaging fully with business community proposals and building upon the first package’s achievements. This approach has culminated in the new package of incentives and measures designed to enhance tax services and streamline procedures. For more information on Egypt’s economic policies, visit the Ministry of Finance website.
The second package introduces various incentives for compliant taxpayers, including an “Excellence Card,” intended to encourage voluntary compliance and promote greater stability in tax interactions.
These facilities also feature accelerated Value Added Tax (VAT) refunds, directly boosting cash flow for companies and taxpayers. Furthermore, the simplified tax system will be accessible for the 2023 and 2024 tax periods.
The package also outlines measures to support the capital market, such as transitioning from capital gains tax to stamp duty on stock exchange transactions. Tax advantages will be offered for three years to encourage company listings on the bourse, aiming to boost trading volume and investments.
The Authority is also developing an integrated electronic system to streamline company liquidation and closure procedures. Concurrently, an e-application for real estate transactions will be launched, enabling easy notification and payment of due taxes.
Furthermore, the package includes a legislative amendment to the VAT law, reducing VAT on medical devices to 5% from 14%. Inputs, parts, and supplies for kidney dialysis and filters will be fully exempt from VAT. These changes aim to support the health sector, ease burdens on citizens, and bolster local manufacturing.
Abdel Aal also highlighted a new consultation platform where the Authority will present all its issuances to the business community for feedback before official release. This initiative seeks to enhance the quality and practical applicability of these regulations.
Rasha Abdel Aal emphasized the Tax Authority’s ongoing commitment to developing its services and expanding communication channels with the business community, aiming to achieve tax stability and support economic development.
