The package, part of a broader effort to streamline Egypt’s tax system, is being expedited ahead of public consultation sessions that began in mid-September.
The Finance Ministry is finalizing a new set of tax relief measures, with 25 proposals currently on the table and more potentially in the pipeline, according to Deputy Finance Minister for Tax Policy Sherif Al Kilani.
The package, part of a broader effort to streamline Egypt’s tax system, is being expedited ahead of public consultation sessions that began in mid-September.
This second tax package follows a first round of relief introduced last year, which aimed to simplify compliance and ease the tax burden across sectors, Al Kilani told Enterprise. The new measures place a particular focus on addressing longstanding challenges with the VAT Law and introducing mechanisms to facilitate compliance for businesses.
Among the key proposals is the rollout of an instant tax refund system for eligible investors. This would replace the current three-month waiting period, providing refunds immediately upon submission of required documents, including export invoices. Al Kilani said the system is designed to improve liquidity and cash flow for compliant taxpayers.
Eligibility for the expedited refunds will be restricted to businesses with strong tax compliance records - those with no history of evasion, minimal discrepancies in audits, and consistent filing performance. The ministry is currently working on a whitelist using a risk-based classification model to determine qualifying taxpayers.
While the new package introduces several changes, the VAT registration threshold (set at EGP 500,000) will remain unchanged, despite calls from the private sector to raise it in light of inflation.
However, the ministry has agreed to extend the deadline for companies to settle pre-2020 tax disputes. The deadline, previously set for August 12, will now be extended for a renewable six-month period.
Alongside the tax proposals, a separate package of customs breaks is also being fast-tracked. Both the tax and customs initiatives will require legislative amendments and are expected to head to Parliament after the public dialogue phase concludes.
Meanwhile, a long-anticipated real estate tax relief package has already received cabinet approval and is now awaiting ratification by the House of Representatives.
Egypt saw its tax revenues grow at the fastest pace in years last fiscal year, climbing 35.3% year-on-year to EGP 2.2 trillion. Finance Minister Ahmed Kouchouk attributed the surge to reforms aimed at broadening the tax base and increasing system efficiency.
