The Egyptian Tax Authority (ETA) has begun issuing temporary tax cards valid for eight months to help investors complete the establishment procedures for their projects, after which they can obtain five-year tax cards. The measure aims to simplify company establishment procedures, attract domestic and foreign investment and facilitate processes for serious investors.
Rasha Abdel Aal, Head of the ETA, said the move is part of the state’s efforts to improve the investment climate and simplify company establishment procedures. She said it responds to recommendations from international institutions concerned with investment affairs, as well as demands from new investors, and forms part of the second package of tax facilitation measures and the implementation of Finance Minister Ahmed Kouchouk’s directives to facilitate procedures for investors.
She explained that the primary purpose of the temporary tax card is to address procedural conflicts affecting certain activities of a specialised nature, such as factories and strategic activities. In such cases, investors may have an administrative headquarters limited to financial and human resources functions, while the premises where the actual activity is conducted require licences and proof of land tenure from multiple government authorities. This had previously hindered the issuance of five-year tax cards and delayed the completion of establishment procedures.
Abdel Aal added that the electronic tax system will be closed to holders of temporary tax cards, meaning they will not be able to issue electronic invoices or receipts until they have regularised their status and switched to a permanent tax card after meeting the required criteria. The measure aims to strike a balance between facilitation and governance.
She noted that the issuance of temporary tax cards is subject to the Authority’s discretion based on the nature of the activity. Coordination meetings are currently being held with ETA representatives at the offices of the General Authority for Investment and Free Zones (GAFI) to determine precisely which activities are eligible.
The ETA Head pointed out that standard service and commercial activities operating from a single premises and with valid lease agreements and legal proof of tenure are not subject to the temporary tax card system. Such businesses will continue to receive permanent tax cards valid for five years upon submission of the required documents, in line with the Authority’s approach of providing flexible and streamlined tax services governed by the highest standards of transparency.
