Finance Minister Ahmed Kouchouk said on Sunday, March 22, 2026, new incentives and facilities were added to the “second package of tax relief” after approximately 40 community dialogue meetings, during which proposals and demands from representatives of the tax community were heard.
He said the second package includes 33 legislative and executive measures, all aimed at providing facilities, incentives, and exemptions to committed taxpayer.
Kouchouk said in a statement on Sunday that concessional, low-cost financing will be available for the first 100,000 taxpayers joining the simplified and integrated tax system, encouraging entrepreneurs and small and medium-sized enterprises to join the system, thereby supporting their expansion and growth.
He added that the Tax Dispute Resolution Law will be extended until December 31, 2026, helping to reduce the burdens on taxpayers.
He also noted the introduction of a “white list” and a “Distinguished Taxpayer Card” for compliant and outstanding taxpayers, granting them new incentives and priority access to specialized services, strengthening trust and voluntary tax compliance.
Kouchouk said the Value Added Tax (VAT) refund departments will be restructured to simplify and accelerate procedures and improve liquidity for taxpayers, with immediate VAT refunds targeted for those on the white list, doubling both the number of cases and amounts refunded.
He noted that total VAT refunds during the past fiscal year amounted to EGP 7.2 billion, a growth rate of 151%, with plans to increase this further to provide necessary liquidity for registrants.
He said legislative amendments will be made to eliminate double taxation on dividend distributions between subsidiaries and holding companies, exempting dividends received by holding companies when processed within their commercial framework.
Amendments will also be made to the Income Tax Law to simplify the write-off of small debts and reduce procedural burdens.
Kouchouk stated that specialized tax service centers will be established for taxpayers, beginning in New Cairo, Sheikh Zayed, and New Alamein. For the first time, the Tax Authority will authorize the company “e.Tax” to provide certain premium tax services and technical support to taxpayers.
A new law will allow taxpayers to benefit from the lump-sum and proportional tax systems for the 2023 and 2024 fiscal years.
He also noted that securities listed on the Egyptian Exchange will be subject to stamp duty instead of capital gains tax to encourage investment in the stock market.
The minister added that acquisition costs for calculating capital gains tax on unlisted shares and securities will be defined, with tax incentives to encourage major and influential companies to list on the exchange for three years, ensuring a noticeable increase in trading volume and investment.
Kouchouk highlighted the launch of an electronic consultation platform with the tax community to foster partnership and trust, as well as an electronic system to complete all company liquidation and closure procedures as quickly as possible.
A permanent committee will be formed to review taxpayer appeals against transfer pricing assessments.
He confirmed that real estate transaction tax for individuals will remain at 2.5% of the sale value per unit, regardless of repeated transactions, with exemptions for spouses, assets, and branches, and a mobile application will be available for notifications and easy payment of the tax due.
The minister added that offsetting will be allowed between taxpayers’ credit and debit balances to facilitate tax payments, granting the right to recover credit balances from income tax returns to provide liquidity.
Guidance manuals will also be issued for tax treatment of exported services and to unify administrative attachment procedures in accordance with the law.
Legislative amendments will allow the issuance of temporary tax cards to accelerate company registration and licensing procedures. New measures will promote tax justice and integrate the informal economy, including linking tax registration with electronic systems and enabling taxpayers to document all costs.
Kouchouk noted the introduction of legislation to eliminate estimated taxation, while keeping it in effect for previous years, and requiring all state entities to transact only through the tax card to expand the taxpayer base.
He also stated that returns on loans paid abroad for all companies involved in national projects will be exempted, and the maximum limit for financing costs (loan interest) will be increased to facilitate strategic project financing without additional burdens.
A new law will reduce VAT on medical devices from 14% to 5% to promote medical investment.
MENA
Listen to the word paragraph