El-Kilany stated that the meeting was held in line with the directives of Finance Minister Ahmed Kouchouk to enhance cooperation with various international partners.
He affirmed that the Ministry of Finance values its
long-standing and close relations with the Singaporean embassy and is
continuously working to make these relations fruitful and constructive,
contributing to the support of economic and investment cooperation between the
two countries.
El-Kilany explained that the Egyptian government is highly
focused on strengthening partnerships with foreign investors and creating a
stable, transparent business environment. These efforts, he stated, align with
directives from the political leadership and support sustainable economic
growth.
He also highlighted the need for cooperation among
government institutions through legislative and procedural reforms. These
reforms, aimed at simplifying tax and customs processes and offering real tax
incentives, are designed to align with international best practices and improve
Egypt's overall investment climate.
El-Kilany highlighted the "Simplified Tax System"
(under Law No. 6 of 2025) as one of the most significant reforms. This system
is specifically designed for small and emerging companies with an annual
turnover of up to 20 million EGP. It features a tiered tax rate that starts at
just 0.4% for turnovers under 500,000 EGP and goes up to 1.5% for those under
20 million EGP.
The system offers numerous benefits and simplifications,
including:
Five-year exemption from tax audits.
Exemption from capital gains tax on the sale of fixed
assets.
Waivers of dividend tax, state resource development fees,
stamp duty, and other notarization and registration fees.
Exemption from the withholding or advance payment system.
Simplified declarations, allowing for quarterly VAT and
annual payroll tax filings instead of monthly ones.
Streamlined registration and payment procedures, removing
the need for complex accounting records or lengthy declarations.
El-Kilany stated that the Simplified Tax System is part of a
larger government effort to integrate the informal economy into the formal
sector, promoting tax inclusivity and reducing the burden on small businesses.
He explained that these businesses are the backbone of any developing economy.
He also noted that the simplified system is connected to
Egypt's broader digital tax transformation, including the e-invoicing and e-receipt
systems. The Egyptian Tax Authority provides full support to help companies
join these platforms, which helps accurately track sales and purchases, protect
the rights of both investors and the state, and ensure transparency in economic
transactions.
El-Kilany also highlighted other key tax reforms, such as
adopting a sample-based audit system based on a risk profile. This system,
which includes all major companies, is designed to reduce burdens and speed up VAT
refund procedures to provide partners with liquidity. He added that a
significant number of past disputes with taxpayers have been resolved, marking
a new chapter of trust and cooperation.
El-Kilany proudly announced that Egypt has achieved an
unprecedented 36% increase in tax revenue this year compared to the last. He
attributed this record-breaking achievement to a fundamental shift in the
relationship between the government and taxpayers, moving from a
collection-based approach to one built on trust and partnership. He explained
that taxpayers are now paying their dues voluntarily, driven by a sense of
responsibility and confidence in the new tax system.
After listening to various challenges and suggestions from
the Singaporean business community, El-Kilany concluded his remarks by
promising that the ministry will work to find practical solutions that support Singaporean
investments. These efforts will align with the ongoing tax and customs reforms
led by the Ministry of Finance. He affirmed the ministry’s commitment to
providing all necessary support and opening direct communication channels to
understand and address any difficulties faced by investors. This, he noted,
will ensure the success of these investments, enhance mutual interests, and
boost economic growth in both countries.
Singapore's Ambassador, Dominic Goh, expressed his pleasure with the meeting, commending the digital leap in the development of both the Ministry of Finance and the Egyptian Tax Authority. He affirmed that coordination between the Singaporean embassy and the ministry will remain continuous. This ongoing effort aims to remove any challenges or obstacles and to send a reassuring message to Singaporean investors looking to increase their investments in Egypt.