New round of tax relief measures to rollout soon, says Deputy Finance Minister

Cairo – October 2, 2025: The Finance Ministry is putting the finishing touches on a new round of tax relief measures, currently featuring 25 proposals, with the possibility of additions or adjustments before rollout, according to Deputy Finance Minister for Tax Policy Sherif Al Kilani.

The package is being fast-tracked as part of a wider push to modernize Egypt’s tax system, with public consultation sessions already underway since mid-September.

This second tax package follows a first round of relief introduced last year, which aimed to simplify compliance and ease the tax burden across sectors, Al Kilani told Enterprise. The new measures place a particular focus on addressing longstanding challenges with the VAT Law and introducing mechanisms to facilitate compliance for businesses.

Among the key proposals is the rollout of an instant tax refund system for eligible investors. This would replace the current three-month waiting period, providing refunds immediately upon submission of required documents, including export invoices. Al Kilani said the system is designed to improve liquidity and cash flow for compliant taxpayers.

Eligibility for the expedited refunds will be restricted to businesses with strong tax compliance records - those with no history of evasion, minimal discrepancies in audits, and consistent filing performance. The ministry is currently working on a whitelist using a risk-based classification model to determine qualifying taxpayers.

While the new package introduces several changes, the VAT registration threshold (set at LE 500,000) will remain unchanged, despite calls from the private sector to raise it in light of inflation.

However, the ministry has agreed to extend the deadline for companies to settle pre-2020 tax disputes. The deadline, previously set for August 12, will now be extended for a renewable six-month period.

Alongside the tax proposals, a separate package of customs breaks is also being fast-tracked. Both the tax and customs initiatives will require legislative amendments and are expected to head to Parliament after the public dialogue phase concludes.

Meanwhile, a long-anticipated real estate tax relief package has already received cabinet approval and is now awaiting ratification by the House of Representatives.

Egypt saw its tax revenues grow at the fastest pace in years last fiscal year, climbing 35.3 percent year-on-year to LE 2.2 trillion. Finance Minister Ahmed Kouchouk attributed the surge to reforms aimed at broadening the tax base and increasing system efficiency.