Speaking during an open dialogue with tax experts and accounting firms, Kouchouk emphasized that the upcoming reforms would incorporate recommendations from ongoing community dialogues to address long-standing challenges effectively.
"We have selected impactful measures that we can
implement and monitor efficiently to ensure the sustainability and quality of
tax services," the Minister said. He added that a comprehensive tax policy
strategy would be unveiled before the end of the current fiscal year to boost
investor confidence.
Kouchouk highlighted the ministry's commitment to
modernizing the system through technology and Artificial Intelligence to
simplify procedures. He announced that "e-Tax" has been authorized to
provide specialized services to taxpayers through advanced centers to create a
"qualitative shift" in service delivery. Furthermore, a new mobile
application for real estate disposal taxes will be launched to streamline the
process for citizens.
The Minister detailed several key components of the second
reform package intended to stimulate the economy:
VAT Reduction: Value-added tax on medical devices will be
cut from 14% to 5%.
Real Estate Tax Cap: The real estate disposal tax will be
fixed at 2.5% of the sale value, regardless of the number of transactions, with
no additional burdens.
Stock Market Support: New financial and tax benefits will be
introduced to encourage major companies to list on the Egyptian Exchange (EGX),
including implementing a stamp duty instead of capital gains tax.
Investment Incentives: Interest on foreign loans will be
deductible from the tax base for companies executing strategic projects.
Avoiding Double Taxation: Dividend distributions for
Egyptian subsidiaries of resident holding companies will be exempted from tax.
The Minister noted that a simplified, integrated tax system for small-scale taxpayers is central to expanding the tax base. The new package also aims to accelerate the refund of taxpayer dues, particularly VAT refunds, and allow for the clearing of all credit balances.
Kouchouk also confirmed that the law for settling tax disputes would be renewed, with improved mechanisms to resolve conflicts "efficiently and impartially."