Tuesday 25 Feb
The Egyptian Tax Authority has released an explanatory guide detailing the Tax Incentives and Facilities Initiative (First Package), following the recent presidential law. Dr. John Saad highlighted that this initiative offers a significant opportunity for those outside the formal tax system to register without penalties or fines.
The guide emphasizes simplified procedures for resolving tax disputes, promoting investment and SME growth. Dr. Saad also confirmed the cancellation of unsupported declarations.
Presidential Law No. 7 of 2025, amending the Unified Tax
Procedures Law, introduces new articles setting ceilings for late fees and
regulating tax crime reconciliation.
Key changes to reconciliation fees, as outlined in the
guide:
Previous Bracket 1: EGP 16,600, New Bracket 1: EGP 1,500 –
6,000
Previous Bracket 2: EGP 33,300, New Bracket 2: EGP 3,000 –
9,000
Previous Bracket 3: EGP 666,000, New Bracket 3: EGP 25,000 –
100,000
Previous Bracket 4: EGP 1,220,000, New Bracket 4: EGP 50,000
– 150,000
This initiative aims to encourage formalization and reduce the burden of tax disputes.
