Kouchouk emphasized that the full details of the second tax facilitations package will be opened for public consultation, allowing stakeholders to contribute their views and suggestions to refine and enhance the package

During the weekly press conference chaired by Prime Minister Dr. Mostafa Madbouly at the New Administrative Capital, Minister of Finance Ahmed Kouchouk unveiled the second package of tax facilitations, a major step within a broader government strategy aimed at easing tax procedures, expanding the tax base, and strengthening a trust-based relationship with taxpayers, investors, and the business community.

 

Kouchouk emphasized that the full details of the second tax facilitations package will be opened for public consultation, allowing stakeholders to contribute their views and suggestions to refine and enhance the package.

 

He stressed that these facilitations are designed to address investor requests, reinforce partnership with taxpayers, and create a more enabling environment for economic activity.

 

The Minister highlighted the strong results achieved through the first tax facilitations, confirming that the simplified and integrated tax system will continue to apply to activities with annual business volumes of up to EGP 20 million.

 

He announced coordination with the Micro, Small and Medium Enterprise Development Agency to encourage the first 100,000 taxpayers to join the simplified tax system, alongside cooperation with the Ministry of Communications and Information Technology to incentivize entrepreneurs to enter the tax base and support their growth and expansion.

 

Kouchouk stated that the second tax facilitations package introduce a comprehensive incentive framework to reward compliant taxpayers, including a White List for high-compliance profiles, an Excellence Card granting priority access to specialized tax services, and additional benefits tied to sustained compliance.

 

He also announced a full restructuring of VAT refund departments to simplify procedures and accelerate processing times. Under the new system, White List members will receive VAT refunds within one week, with a doubling of both the number of processed refund cases and the total refunded amounts.

 

He noted that VAT refunds reached EGP 7.2 billion during FY 2024/2025, representing 151% growth, with a target to further increase this amount to support business liquidity.

 

The Minister added that the Ministry will propose renewing the Tax Dispute Resolution Law while improving the efficiency of internal committees and dispute-resolution panels to ensure faster closure of cases. A legislative amendment will also exempt dividend distributions of Egyptian subsidiaries owned by resident holding companies.

 

In parallel, premium Tax Service Centers operated through E-Tax will be launched in New Cairo, Sheikh Zayed, and New Alamein, offering advanced and streamlined services for taxpayers. Kouchouk further explained that a legislative proposal will allow taxpayers for fiscal years 2023 and 2024 to benefit from both the lump-sum and proportional tax systems.

 

To stimulate investment in the Egyptian Stock Exchange, the Minister announced a policy shift to apply stamp tax instead of capital gains tax, with the aim of encouraging institutional investment. In coordination with the Financial Regulatory Authority, tax incentives will be granted to promote new listings for a three-year period, supporting improvements in trading volumes and attracting additional investments.

 

Kouchouk also unveiled several digital initiatives, including the launch of a digital consultation platform to deepen trust-based dialogue with the tax community, and a comprehensive digital system to expedite company liquidation and closure. He announced the separation of commercial tax audits from transfer pricing audits and the introduction of a new procedural stage dedicated to taxpayer appeals.

 

Regarding real estate taxation, the Minister announced the development of a mobile application for real estate transactions, enabling simple notification and payment of due taxes. He confirmed that a 2.5% tax will apply to the sale value of any property unit, even when multiple transactions are made by the same seller.

 

Taxpayers will also be able to recover credit balances based on their tax returns and offset credit and debit balances to simplify settlement of obligations.

 

A tax treatment guide for exported services will be issued to support their competitiveness in global markets. Additionally, a legislative amendment to the Unified Tax Procedures Law will enable the issuance of a temporary four-month tax card to accelerate company establishment processes.

 

Kouchouk stated that the second tax facilitations package also include measures to promote fairness and integrate the informal economy, such as facilitating audits, refunds, and expense approvals for compliant taxpayers.

 

He explained that companies engaged in strategic projects will be allowed to deduct foreign loan interest from their taxable base, and will be exempted from the maximum limit on deductible interest—removing financial obstacles that could hinder project financing.

 

The Minister announced several VAT measures designed to support investment and the healthcare sector.

 

These include removing VAT from transit goods and associated services; reducing VAT on medical devices from 14% to 5%; exempting components and supplies of dialysis machines and kidney filters from VAT; and extending the VAT suspension period on machinery, equipment, and medical devices to four years.

 

Kouchouk concluded that the second tax facilitations package represent a new phase of partnership between the state and the tax community, supported by digital transformation and a commitment to reducing the cost of compliance for businesses.

 

He reaffirmed that the Ministry aims to build a modern, predictable, and investment-friendly tax environment that can support stronger economic growth in the years ahead.