Rasha Abdel Aal, Head of the Egyptian Tax Authority (ETA), announced that the Authority has issued Instruction No. 46 of 2025, outlining new procedures for offsetting credit and debit balances for registered taxpayers in accordance with Article 50 of Law No. 206 of 2020. She noted that the instructions were introduced in response to requests from the business community and the Minister of Finance’s ongoing directives to identify challenges, deliver solutions and provide facilitations that support investment.
Abdel Aal explained that the instructions grant registered taxpayers the right to offset credit balances shown in Form 15 (Audit) against outstanding tax liabilities owed to the Authority. The process may be completed within 20 working days for cases previously audited, and within a maximum of two months for cases that have not yet undergone audit. She pointed out that investors’ primary challenge had been the difficulty of settling tax obligations across various tax types, despite holding credit balances with the Authority relating to VAT.
She added that Instruction No. 46 of 2025 aims to significantly streamline procedures. Taxpayers may submit an offset request using Form No. 1 Offset, specifying the credit balance, the relevant tax periods and the liabilities for which the offset is sought. The Authority will review the request and issue an approval or rejection within the specified timeframes: 20 working days for audited cases and up to two months for unaudited ones.
Abdel Aal highlighted that a key advantage of the new instructions is that offsets may be completed without activating the refund procedures and conditions stipulated in the law. This measure, she said, will help investors improve liquidity, reinject it into their operations and avoid the additional financial burdens associated with settling outstanding tax liabilities in cash.
