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Tax expert outlines Egypt's 2026 fiscal reform priorities

Businessmen Team news 01 January 2026 02:10 PM
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Tax expert outlines Egypt's 2026 fiscal reform priorities

Tax Authority is set to launch a comprehensive Tax Policy Strategy in the first quarter of 2026, aimed at boosting voluntary compliance and providing a clear roadmap for investors, according to tax expert Dr. John Saad.

Saad summarized the urgent priorities for the tax authority through 2026, highlighting a shift toward digitalization, the integration of the informal economy, and a taxpayer-first approach to administration.

The upcoming 2026 strategy is designed to expand the tax base and support economic activity by offering clear guarantees to taxpayers. This priority reflects a strategy to encourage investment and provide a stable fiscal environment.

A major pillar of the 2026 agenda is the implementation of a second package of tax facilities. Key features include: Centralized Clearing: A new system for offsetting tax balances and accelerating Value Added Tax (VAT) refunds; White List Incentives: Special benefits for compliant taxpayers included in a White List program; and Consultation Platform: A dedicated digital space for continuous dialogue with the business community.

The authority also plans to simplify procedures for small and medium-sized enterprises (SMEs) while reducing penalties and administrative burdens to limit long-standing legal disputes.

Saad noted that 2026 will see a push for advanced digitalization, including the deployment of artificial intelligence (AI) in tax administration. Specialized task forces will lead pilot projects to enhance operational efficiency and improve service delivery for taxpayers.

Expanding the tax base remains a top priority. The authority plans to lure individuals and businesses from the informal sector into the official system through: Simplified Tax Regimes: New systems tailored specifically for small projects; Collaboration: Joint awareness campaigns with chambers of commerce and provincial outreach programs; and Data Integration: Enhanced data sharing between government agencies to track compliance and reduce tax evasion.

He concluded by noting that internal restructuring is equally vital. The Authority is expected to overhaul its performance evaluation systems and launch intensive training programs to ensure staff can keep pace with rapid legislative and technological changes.