The Egyptian Tax Authority (ETA) has introduced Law No. 5 of 2025, effective from 13 February 2025, offering tax relief and dispute settlement opportunities to enhance compliance and resolve outstanding tax matters. Key provisions include:

Under the new law, unregistered taxpayers are exempt from tax obligations on past periods before 13 February 2025, including corporate income tax, VAT, stamp tax, and the State’s financial resources development fee. To qualify, taxpayers must register for corporate income tax and VAT within three months, with a possible extension granted by the Minister of Finance. No prior enforcement actions by the ETA should be pending before 13 February 2025.

Taxpayers who have failed to file returns since 2020 are granted penalty relief, provided they submit the required returns within six months of 13 February 2025. This relief extends to amended returns, where penalties will be waived if errors or omissions are corrected within the same timeframe.

For taxpayers subject to estimated audits for periods before 1 January 2020, a dispute settlement option is available. Taxpayers can resolve disputes by paying a reduced tax amount—30% of the tax due—if they have submitted returns. The rate rises to 40% if no return was submitted, or if there were unpaid taxes or declared losses. Payments can be made in quarterly installments over a year without additional taxes or penalties.

Taxpayers subject to actual examinations based on regular accounts for the same period can settle disputes by paying the principal amount due within three months of filing a request. All dispute settlement requests must be submitted within three months of the law’s effective date.