Egypt introduces the First Package of Tax Reforms aimed at Driving Economic Transformation and Attracting Investment

| Image Credits: The New Administrative Capital (NAC), Egypt

On October 9, 2024, Egypt’s Minister of Finance, Ahmed Kouchouk, introduced the first package of tax concessions designed to foster economic transformation through a series of tax reforms. These reforms, which include over 20 key measures, aim to build trust with taxpayers and streamline tax services while alleviating financial burdens for established businesses and encouraging investment, including startups.

The new tax concessions are part of a broader effort to:

1. Reduce the financial burdens on businesses and attract new taxpayers.

2. Provide liquidity support to existing financiers and partners.

3. Unify and simplify tax services.

4. Resolve long-standing tax disputes and close old files.

A simplified tax system will be introduced for small businesses and startups with annual revenues of up to 15 million EGP, offering straightforward procedures and transparent tax calculations. Legislative changes will also be enacted to reduce taxpayer burdens, including capping fines and simplifying tax declarations to save time and costs.

To further support investors, Egypt plans to release clear guidelines detailing taxpayer rights and obligations, as well as improve its investor complaint system to ensure faster, more transparent resolution of issues.

Additionally, the government will implement a modern media communication system aimed at educating the public about these reforms and gathering feedback. Employee incentives will be tied to performance targets, ensuring better service for taxpayers.

Kouchouk also emphasized that Egypt’s long-term fiscal strategy focuses on improving fiscal sustainability, reducing government debt, and ensuring that the benefits of economic growth are felt by all citizens through enhanced health and education programs. The plan also prioritizes reducing external debt and channeling more resources into productive sectors and social protection initiatives.

These reforms signal Egypt’s commitment to creating a more business-friendly environment while fostering sustainable economic growth.

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