Egypt announced a second tax facilitation package to simplify tax procedures and encourage compliance.
The Egyptian Ministry of Finance announced a second tax facilitation package on 15 December 2025, aimed at simplifying tax procedures, expanding the tax base, and strengthening trust with taxpayers, investors, and the business community.
The package addresses investor demands and reinforces partnership with taxpayers. The simplified and integrated tax system will continue to apply to activities with annual business volumes of up to EGP 20 million. Coordination with the Micro, Small and Medium Enterprise Development Agency aims to encourage the first 100,000 taxpayers to join the simplified system, while cooperation with the Ministry of Communications and Information Technology will support entrepreneurs entering the tax base.
The second package introduces a comprehensive incentive framework, including a White List for high-compliance profiles, an Excellence Card granting priority access to specialised tax services, and additional benefits linked to sustained compliance. VAT refund departments will be restructured to simplify procedures, with White List members receiving refunds within one week. VAT refunds reached EGP 7.2 billion in FY 2024/2025, a 151% increase, with further growth targeted to support business liquidity.
The Ministry will propose renewing the Tax Dispute Resolution Law and improving the efficiency of internal committees and dispute-resolution panels for faster case closures. A legislative amendment will exempt dividend distributions of Egyptian subsidiaries owned by resident holding companies. Premium Tax Service Centers will be launched in New Cairo, Sheikh Zayed, and New Alamein, and a proposal will allow taxpayers for fiscal years 2023 and 2024 to benefit from both lump-sum and proportional tax systems.
To stimulate investment in the Egyptian Stock Exchange, stamp tax will replace capital gains tax to encourage institutional investment. Tax incentives will also promote new listings over a three-year period, aiming to improve trading volumes and attract investment.
Digital initiatives include a consultation platform for taxpayers, a digital system to expedite company liquidation, separation of commercial tax audits from transfer pricing audits, and a new procedural stage for taxpayer appeals. A mobile application will simplify real estate transactions, with a 2.5% tax applied to the sale value of any property unit, including multiple transactions by the same seller. Credit balances can be recovered or offset against debits to simplify settlements.
To support exports, a tax treatment guide for exported services will be issued, and a temporary four-month tax card will be available to speed up company establishment. Measures to promote fairness and integrate the informal economy include simplified audits, faster refunds, and streamlined expense approvals for compliant taxpayers. Companies undertaking strategic projects can deduct foreign loan interest from their taxable base and will be exempt from the maximum limit on deductible interest.
VAT measures to support investment and the healthcare sector include removing VAT on transit goods and related services, reducing VAT on medical devices from 14% to 5%, exempting components and supplies of dialysis machines and kidney filters, and extending the VAT suspension on machinery, equipment, and medical devices to four years.
Minister of Finance Ahmed Kouchouk unveiled the package during a weekly press conference chaired by Prime Minister Dr Mostafa Madbouly at the New Administrative Capital. He said full details will be released for public consultation, allowing stakeholders to submit feedback to refine the measures.
Kouchouk said the second tax facilitation package represents a new phase of partnership between the state and the tax community, underpinned by digital transformation and a commitment to reducing compliance costs. The Ministry aims to establish a modern, predictable, and investment-friendly tax environment to support stronger economic growth in the coming years.
