Kouchouk emphasized that the political leadership strongly supports the path of trust, partnership, and support for the private sector. He welcomed all proposals, stressing that the government’s efforts stem from listening to the tax challenges faced by its partners to facilitate growth and investment.
He noted that the second package aims to reward compliant
and consistent taxpayers, enhance services, reduce burdens, and stimulate
voluntary compliance.
Key measures in the second tax package:
Compliant Taxpayers: Introduction of a "White
List" and a "Privilege Card" to reward compliant taxpayers and
solidify "a partnership of trust."
Procedural Easing: Streamlining, simplifying, and
accelerating tax procedures, including examination, tax refunds, and the fast,
tangible reimbursement of Value-Added Tax (VAT) to increase corporate
liquidity.
Settlements: Allowing the utilization of the simplified
"lump sum" and "proportional" tax systems for the 2023 and
2024 tax periods.
Offsetting: Allowing taxpayers to conduct
"clearing" (مقاصة) between their debit and credit balances
to simplify tax burden settlement. Taxpayers also retain the right to reclaim
credit balances from tax returns.
Capital Gains: Shifting back to a stamp tax system instead
of capital gains tax to stimulate investment and trading on the Egyptian
Exchange (EGX).
Stock Market Incentives: Providing tax advantages for
companies listing on the EGX for three years to encourage registration and
boost trade volume.
Real Estate Tax: Implementing a dedicated mobile application
for real estate dispositions, allowing easy notification and payment of the
tax, and confirming a fixed $2.5\%$ tax on the unit's sale value, regardless of
the number of dispositions by the seller.
Strategic Investments: Allowing private sector companies
involved in strategic projects to deduct foreign loan interest from the tax
base.
VAT Adjustments: Removing VAT on transit goods and related
services to promote transit trade. VAT on medical devices will be reduced from $14\%$
to just $5\%$, and inputs for dialysis equipment will be VAT-exempt. The
suspension period for VAT on machinery, equipment, and medical devices will be
extended to 4 years to encourage major investments.
Tax Authority Head Rasha Abdel Aal added that the law extending the use of the Tax Disputes Termination Law has been renewed in response to the business community. She also announced the planned opening of dedicated premium service centers for compliant taxpayers.