Egyptian Tax Authority issues guide to new tax incentive initiative

Businessmen Team news 25 February 2025 02:10 PM

Egyptian Tax Authority issues guide to new tax incentive initiative

The Egyptian Tax Authority has released an explanatory guide detailing the Tax Incentives and Facilities Initiative (First Package), following the recent presidential law. Dr. John Saad highlighted that this initiative offers a significant opportunity for those outside the formal tax system to register without penalties or fines.

The guide emphasizes simplified procedures for resolving tax disputes, promoting investment and SME growth. Dr. Saad also confirmed the cancellation of unsupported declarations.

Presidential Law No. 7 of 2025, amending the Unified Tax Procedures Law, introduces new articles setting ceilings for late fees and regulating tax crime reconciliation.

Key changes to reconciliation fees, as outlined in the guide:

Previous Bracket 1: EGP 16,600, New Bracket 1: EGP 1,500 – 6,000

Previous Bracket 2: EGP 33,300, New Bracket 2: EGP 3,000 – 9,000

Previous Bracket 3: EGP 666,000, New Bracket 3: EGP 25,000 – 100,000

Previous Bracket 4: EGP 1,220,000, New Bracket 4: EGP 50,000 – 150,000

This initiative aims to encourage formalization and reduce the burden of tax disputes.

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Taxes The Egyptian Tax Authority Tax Incentives and Facilities Initiative Dr John Saad penalties fines reconciliation investment