Egypt’s Minister of Finance, Ahmed Kouchouk, during a press conference, unveiled a new package of tax incentives in an attempt to simplify tax procedures and enhance economic productivity on Wednesday, 11 September 2024.

The incentives include allowing taxpayers to submit or amend their tax returns for the years 2021 to 2023 without facing penalties. Other initiatives involve simplifying tax return processes, extending sample audits to all tax centres, and adopting a risk-based approach for audits.

Late payment penalties will be limited to the original tax amount to accelerate resolutions of tax disputes. The threshold for international companies required to submit transfer pricing studies has also been increased to EGP 30 million.

The new measures will provide small and micro enterprises, startups, freelancers, and professionals with an annual turnover below EGP 15 million access to a simplified and integrated tax system.

The government is set to introduce a centralised settlement mechanism for investors and streamline the value-added tax refund process. Additionally, a tiered penalty system for non-compliance will be implemented, with penalties varying in severity according to the size of the business.

To improve the efficiency of the Egyptian Tax Authority, the government plans to invest in training and development programs for its staff. A new performance evaluation system will be introduced to assess employee productivity and the quality of services offered to taxpayers.

“The government aims to broaden the tax base to ensure the interests of both the state and investors, while also improving services for citizens,” said Ahmed Kouchouk. “But we are committed as a country, according to our plan with the Central Bank of Egypt, to reduce inflation to less than 10% by the end of 2025, and this is what the state and all its institutions are working to achieve.”