New simplified tax system aimed at strengthening economy

Ahmed Kouchouk, Egypt’s Finance Minister, has announced that a simplified tax system designed to support small and medium-sized enterprises (SMEs), entrepreneurs and professionals will soon be approved. This initiative is part of the government’s broader effort to drive investment and promote the growth of the private sector, ultimately strengthening Egypt’s economy. According to the Daily News Egypt, Kouchouk highlighted that the first package of tax reforms will provide practical solutions to address challenges faced by both large and small taxpayers. This new framework marks a significant shift toward fostering trust and collaboration between the government and the tax community. A key component of this package will be the reinstatement of sample-based audits for all taxpayers. In a recent meeting with the Egyptian Federation of Investors Associations and Institutions, Kouchouk emphasised that the VAT refund system will be simplified, and refund amounts will be doubled. Additionally, new incentives will be introduced to help resolve outstanding tax disputes, with penalties capped at no more than the original tax amount. An advanced electronic settlement system will be established to improve liquidity by facilitating the clearance of receivables and government debts for investors.

Full report on the Daily News Egypt site