Abdel Aal announced that the authority began a comprehensive digital transformation in 2018, based on five main pillars, including digitalization, improving employee efficiency, and updating tax legislation like the Unified Tax Procedures Law. She noted that a review last year showed significant success, but also a need to improve relations with the business community, which the authority considers a key partner. Abdel Aal stressed that the relationship with the business community is now based on the principles of partnership, transparency, and credibility.
The first step in this new approach was identifying
challenges faced by investors and prioritizing solutions, which led to the
first package of tax facilities. This initiative was a great success, laying
the groundwork for trust with the business community. This was evident during
the most recent tax season, where taxpayers voluntarily submitted their returns
and paid taxes earlier than usual.
Abdel Aal highlighted that a key element of the first
package was the ability to submit or amend tax returns for the period from 2020
to 2024 without penalties. This provision led to the submission of 650,000 tax
returns, generating EGP 80 billion in revenue, which she said reflects the
business community's response and voluntary compliance.
She announced that a second package of tax facilities is
being prepared and will soon be open for public discussion. Since the first
package was announced, the authority has received numerous proposals from state
institutions and companies, which have been considered in the new package. She
added that there is no intention to pass new laws to waive late payment
penalties, as the current system, which caps late fees at 100% of the original
tax amount, provides the necessary balance.
Abdel Aal stated that a key focus for increasing tax revenue
is maintaining a stable tax policy and tax rates. The authority is also working
to integrate the informal economy into the official system using modern
electronic systems and risk management, which will help maximize tax revenues
without imposing additional burdens on investors.
Saw Huai, Managing Director of TEDA Egypt, expressed his
gratitude for the meeting, thanking the Tax Authority and the Egyptian-Chinese
Businessmen Association for their cooperation. He noted that both the Egyptian
and Chinese governments provide significant support to projects in the TEDA
region, and that the meeting was an important opportunity for direct
communication between Chinese businessmen and the Tax Authority.
In the same context, Omar Wang, Vice Chairman of the
Egyptian-Chinese Businessmen Association, confirmed that the association plays
a pivotal role in supporting all Egyptian and Chinese companies. He added that
a cooperation protocol was signed with the Tax Authority this year to help resolve
challenges facing the Chinese business community. A similar protocol was signed
with the Customs Authority in 2023, following directives from the Minister of
Finance.
Mohamed Alaa, Secretary-General of the Egyptian Businessmen
Association, thanked the Minister of Finance and the Tax Authority for their
support. He said the minister's speech reflected the core goal of current
efforts, which is to build trust with private sector partners. Alaa stated that
this goal has been achieved, pointing to the tax facilities campaign and its
slogan "Starting Over with a Clean Slate" as a signal of a new phase
of partnership and trust. He also noted that this aligns with the Tax Authority
head's announcement to form a specialized committee to resolve investor issues.
As a successful example of this fruitful cooperation, he highlighted the TEDA
company, confirming the success of the partnership in deepening mutual trust
with Chinese investors.
The meeting was attended by several Tax Authority officials, including Adviser to the Head of the Authority Ragab Mahrous, Head of the Central Administration for Tax Research Shahinaz El-Kallaf, Head of the Second Large Taxpayers Center Hassan Khashaba, Head of the First Large Taxpayers Center Soheir Hassan, Assistant to the Head of the Authority Mohamed Abdel Moneim Kishk, Assistant to the Head of the Authority Dr. Afaf Ibrahim; Director General of the website Maha Ali, Director General of E-Transactions Salwa Samir, and Head of the Advance Ruling Unit Mohamed Sorour.