Rasha Abdel Aal, Head of the Egyptian Tax Authority (ETA), said the rules and parameters governing the proposed tax sukuk, including their rate of return, are currently being finalised ahead of their planned launch as a financing instrument for taxpayers in the domestic market within weeks.
Abdel Aal said returns on the sukuk will be tax-exempt by law, unlike those on other financing instruments such as bonds and Treasury bills. She added that the sukuk will offer attractive returns and maturities, while taxpayers will be able to use them to settle their tax liabilities in accordance with applicable regulations.
The ETA chief stressed Finance Minister Ahmed Kouchouk’s commitment to maintaining dialogue and effective communication with the business community, accountants and consultancy firms, helping develop the tax system and strengthen trust between the Ministry of Finance, the ETA and the business community.
She said this approach involves continuously listening to the concerns of the tax community, identifying the challenges it faces and working to develop practical solutions.
Abdel Aal said the authority began taking serious steps towards digital transformation in 2018, expressing pride in having contributed, alongside her colleagues, to implementing the transformation from its outset.
She noted that the authority has made rapid progress in this area compared with many other countries, according to positive assessments by international institutions.
Abdel Aal added that the challenges encountered during the development process were among the factors that prompted the launch of the tax facilitation packages.
She said the tangible results achieved through the first package were the product of combined efforts by the Ministry of Finance, the ETA and the business community, with the aim of making a genuine difference that businesses could feel in their dealings with the tax system through a range of executive measures and significant legislative amendments.
Abdel Aal said one of the most significant measures included in the first package was Law No. 6 of 2025 on the simplified tax system for businesses with annual turnover not exceeding EGP 20m.
The law aims to encourage more taxpayers and entities to join the tax system and benefit from a range of facilitations, including filing value-added tax returns every three months and payroll tax returns once a year.
She said these measures help reduce procedural burdens, encourage tax compliance, broaden the tax base and integrate the informal economy, while also providing a financial contribution from the state through the investment of financial dues relating to both value-added tax and payroll tax.
The ETA head added that the first package was well received by the business community and helped strengthen a culture of voluntary compliance, which was reflected in a broader tax base and higher growth rates in tax revenues.
She said that, as the first package was implemented, the business community raised an important question about what benefits would be available to compliant taxpayers.
This was addressed in the second package, which included around 32 measures aimed at providing further facilitations and advantages to compliant taxpayers.
Abdel Aal said the meeting was a continuation of the approach adopted by the Ministry of Finance and the ETA of maintaining dialogue with and listening to the business community, accountants and consultancy firms, and drawing on their views and proposals in preparing the third package of tax facilitation measures.
She said the authority is working to establish an independent transfer pricing unit in line with international agreements and with due regard for taxpayers’ rights.
The unit will operate independently and is expected to begin work soon, strengthening impartiality and transparency in handling transfer pricing matters.
Regarding VAT refunds, Abdel Aal said the electronic invoice and electronic receipt systems have played an important role in supporting and accelerating tax refund procedures by making data available more accurately and rapidly, helping improve procedural efficiency and provide better services to taxpayers.
She added that the tax audit system has been developed and the sample-based audit system expanded to include large companies.
Taxpayers’ risk profiles are now used to determine which cases are selected for audit, improving the efficiency of the audit system and directing inspections according to risk-based criteria.
She said audit samples are selected based on the technical capacity of tax auditors, ensuring that estimated assessments are not used.
Abdel Aal said the second package of tax facilitation measures focused on achieving competitive neutrality between different entities and organisations, whether public or private, ensuring uniform tax treatment and preventing discrimination between entities.
She pointed to the issuance of Law No. 159 abolishing tax exemptions previously granted to state entities engaged in investment and economic activities, adding that implementation has begun through the formation of specialised committees to work with the various entities concerned.
She said work is under way to complete the practical implementation of competitive neutrality principles, both through the collection of taxes due and by ensuring that entities comply with their obligation to file tax returns.
Abdel Aal added that some entities have already begun paying the taxes due from them and that a report on progress in implementing competitive neutrality will be issued soon.
She said the ETA has launched the first phase of its real estate transactions application for citizens in Cairo, Giza, Qalyubia and Alexandria, describing it as a significant development in the provision of real estate transaction tax services.
The application enables taxpayers to complete all procedures electronically, from registering a real estate transaction request and uploading the required documents to tracking the status of the application, calculating the tax due and paying it securely online.
Taxpayers can also obtain a tax clearance certificate through the application, monitor any subsequent procedures or tax differences related to their applications, if applicable, and verify the authenticity of clearance certificates issued through the application.
Abdel Aal said the authority is using artificial intelligence technologies to calculate real estate transaction tax and issue clearance certificates, supporting faster and more accurate service delivery and simplifying procedures for citizens.
She said work is continuing to develop digital services and expand access to them.
The period before late-payment charges are calculated on the value of real estate transactions has also been increased from 30 days to 60 days, while transactions involving parents and children, siblings and spouses are fully exempt, giving taxpayers greater flexibility and more time to complete procedures and meet their obligations.
Abdel Aal stressed that the ETA is continuing to implement its plan to develop the tax system, strengthen digital transformation and simplify procedures, while listening to constructive proposals and drawing on them in preparing and implementing further reforms and facilitation measures.
She said this would consolidate the principles of partnership and trust, achieve tax fairness, and support investment and the Egyptian economy.
For his part, Ashraf Abdel Ghani, Chairperson of the Egyptian Tax Experts Association and Secretary of the Senate economic committee, said the ETA had established a new vision through its tax facilitation packages based on ending the era of arbitrary tax assessments and establishing the tax authority as a partner in the growth and expansion of business activity, while maintaining tax stability and refraining from imposing new burdens.
He said the most important change experienced by taxpayers is that taxation has become a factor that influences and encourages business activity and investment.
Abdel Ghani added that while the first package targeted non-compliant taxpayers and sought to bring them into the system, the second package aims to reward compliant taxpayers.
He called for the third package to take compliant tax accountants into consideration, describing them as the third pillar of the tax system and an essential partner within it.
