Voluntary Expansion of the Tax Base Creates Significant Space to Stimulate Investment and Increase Spending on Health Education and Social Protection

Minister of Finance Ahmed Kouchouk affirmed that voluntary expansion of the tax base creates broad and meaningful space to stimulate investors and enhance spending on health education and social protection.

 

Speaking during a discussion session with the President and members of the Egyptian Federation of Tourist Chambers Kouchouk stated that the most beneficial approach is for the economy to grow and for the business community to expand and prosper within a strong framework of trust based partnership.

 

The Minister added that everything being considered and implemented fundamentally stems from the business community and that together tax related challenges can be overcome through practical and simple solutions.

 

He further noted that tax culture is changing within the Authority and that the business community is strongly responding to the facilitation path.

 

Kouchouk explained that the second package of tax facilitation measures focuses on long standing and compliant partners by offering further incentives simplification and procedural ease.

 

He pointed out that for the first time certain tax services will be delivered in an enhanced format through eTax Company.

 

He indicated that the simplified and integrated tax system will continue to operate with diverse and unprecedented incentives to voluntarily attract new taxpayers.

 

For the first time a simplified tax regime is being introduced for businesses with annual revenues not exceeding EGP 20 million stressing that the aim is for them to succeed grow and expand.

 

He also announced financing facilities for the first 100000 taxpayers joining this simplified and integrated tax system.

 

The Minister added that the second tax facilitation package addressed tax duplication between holding companies and their subsidiaries and noted that a stamp tax will be introduced in place of capital gains tax to encourage resident trading on the Egyptian Stock Exchange.

 

He confirmed that the real estate transaction tax for individuals will remain at 2.5 percent of the sale value of the unit regardless of the number of disposals.

 

A mobile application will also be launched to enable electronic notification and payment of real estate transaction tax with flexibility and ease.

 

The Minister concluded that a distinction card will be introduced for compliant taxpayers offering additional incentives and facilitation measures while providing genuine support to long term partners.

 

He also announced the launch of an electronic offsetting system between tax receivables and liabilities to further facilitate procedures for taxpayers.