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The Egyptian Tax Authority (ETA) is developing a comprehensive guide on the tax treatment of exported services, aiming to clarify previously confusing directives and offer consistent guidance for businesses, investors, and tax professionals.
The announcement was made by Rasha Abdel Aal, Head of the ETA, during a virtual seminar hosted by Deloitte Egypt. The initiative is part of a broader reform agenda to enhance transparency, tax compliance, and trust between the government and the private sector.
“Direct engagement with taxpayers is vital to solving challenges and building a fair and transparent tax environment,” said Abdel Aal.
Why the New Guide Matters
Earlier guidance on taxing exported services led to confusion during implementation and was ultimately rescinded. The upcoming guide replaces that with a unified, reliable framework.
Key Features Will Include:
- Clear treatment of exported services under Egyptian tax law
- Procedures for VAT refunds, now a top priority under Ministry of Finance oversight
- Details on required documentation for compliance and refund processing
- Policy updates aimed at reducing average VAT refund processing time (currently ~22 days)
Broader Tax Reforms in Progress
Abdel Aal also highlighted a series of ongoing ETA reforms:
- First-phase tax facilities have increased voluntary compliance and tax revenue
- Simplified tax systems for small enterprises (annual revenue ≤ EGP 20m)
- Technical support and free POS devices for businesses transitioning to digital systems
- Activation of a pre-ruling system offering legally binding guidance for future transactions
- New frameworks under review for registering virtual permanent establishments (PEs)
The Authority’s strategy aligns with efforts to digitize commercial operations, especially in the informal sector, and integrate them into the formal economy. Certified accountants are expected to educate and guide businesses through these changes.
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