ETA launches mobile app for electronic payment of real estate transaction tax

Daily News Egypt
5 Min Read

The Egyptian Tax Authority (ETA) has launched a new mobile application that allows taxpayers to pay real estate transaction tax electronically and obtain tax clearance certificates in a fast and convenient manner, according to Rasha Abdel Aal, the ETA chairperson.

Speaking at a meeting organised by the Swiss Chamber of Commerce in Egypt, Abdel Aal said the ETA will continue expanding its digital services in line with directives from the Ministry of Finance to strengthen communication with foreign chambers of commerce. She noted that these chambers play a key role in representing investors, conveying their challenges, and gathering feedback on the second package of tax facilitation measures ahead of its official launch.

She added that these efforts support the improvement of Egypt’s investment climate, enhance partnership with the private sector, and help build mutual trust with the business community.

Abdel Aal explained that digital transformation and the introduction of electronic tax systems have resulted in a qualitative shift in tax administration, facilitating the submission of tax returns, improving access to services, reducing procedural burdens, and boosting voluntary compliance. She emphasised the Authority’s continued cooperation with major international companies to develop tax systems in line with global best practices.

She further noted that expanding the tax base and integrating the informal economy into the formal system is a central pillar of the current strategy. In this context, she highlighted the simplified tax system for businesses with annual turnover of up to EGP 20m, which offers clear incentives, including a proportional income tax ranging from 0.4% to 1.5% based on turnover brackets, as well as exemption from tax audits for five years from the date of joining the system.

ETA launches mobile app for electronic payment of real estate transaction tax

Abdel Aal said the first package of tax facilitation measures helped establish a new framework for engagement with taxpayers by allowing the submission and amendment of tax returns without penalties or fines. This approach strengthened mutual trust and encouraged businesses to regularise their tax positions through cooperation and transparency.

She added that the second package of facilitation measures builds on this foundation and includes 26 provisions aimed at addressing practical challenges and rewarding compliant taxpayers. Key measures include reducing the time required for value-added tax (VAT) refunds and simplifying related procedures.

Abdel Aal also revealed that the ETA plans to launch a “Tax Excellence Card” for compliant taxpayers, which will grant fast-track access to procedures, services from the Advance Ruling Unit and the Investor Support Unit, and expedited VAT refunds.

In addition, she said the package includes the development of a central electronic offsetting system, allowing taxpayers’ credit and debit balances to be offset electronically. This is expected to shorten processing times, simplify settlement procedures, and address administrative challenges related to tax dues.

Abdel Aal noted that the Authority has issued a comprehensive guide on the tax treatment of exported services, outlining the definition of exported services, rules for determining the place of taxation, and required documentation. The guide includes practical examples and is aligned with international standards to ensure stability in cross-border commercial transactions.

She stressed the ETA’s continued formation of joint committees with foreign chambers of commerce, including the Swiss Chamber, to promptly address investor concerns. She added that all inquiries raised by Swiss companies regarding income tax, VAT, and the automated tax system have been resolved.

During the meeting, Abdel Aal received the first edition of the Swiss Chamber of Commerce’s detailed report on Swiss business activity in Egypt. The report showed Swiss investments of $676.4m in fiscal year 2022/2023 and $600.6m in 2023/2024, bringing total investments to an estimated $1.2bn–$1.3bn. It also highlighted the implementation of 443 projects in Egypt and the creation of approximately 25,000 direct jobs.

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