🎧 Listen to This Article
Egypt’s National Tax Authority (ETA) is pursuing an ambitious and comprehensive tax reform agenda, aiming to modernize the system, expand the tax base, and build trust with taxpayers while enabling small businesses and formalizing the shadow economy.
Speaking during the 8th session of the 2024/2025 “Tuesday Seminar” organized by Egypt’s National Institute for Planning under the theme “Egypt Beyond 2025: A Long-Term Development Vision”, Rasha Abdel Aal, Head of the Egyptian Tax Authority, outlined a sweeping roadmap focused on digital transformation, voluntary compliance, and inclusive fiscal justice.
A Digital Leap Forward
ETA has successfully linked its systems with 27 governmental bodies and fully implemented digital platforms such as e-invoicing, e-receipts, payroll systems, and electronic tax return filings. These initiatives have enabled the Authority to develop a granular, accurate national database and have substantially improved its ability to track and integrate the informal economy.
Specialized units were established for e-commerce and digital content creators to provide targeted support and awareness. This has encouraged influencers, freelancers, and online sellers to register voluntarily, many of whom had previously operated outside formal channels.
Support for Small Enterprises: A Paradigm Shift
The 2025 Law No. 6 introduced a simplified tax regime for businesses with annual revenues of up to EGP 20 million. Features include:
- Fixed tax rates ranging from 0.4% to 1.5% of turnover.
- Exemption from audits for five years.
- No retroactive tax claims supporting the principle of “forgive and forget” (‘Afaa Allah ‘Amma Salaf’).
- No hidden fees or administrative burdens.
This has rebranded the tax system’s image among small business owners and led to thousands of new registrations.
Justice and Competitiveness: Cornerstones of Reform
The tax reform strategy underscores progressive taxation, promoting equity without deterring entrepreneurship. Abdel Aal stressed that recent legal changes, including Law No. 159/2023, eliminated selective exemptions that previously distorted competition, ensuring neutral tax treatment across sectors.
ETA also works closely with investment and industrial authorities, streamlining company registration and liquidation through a unified “one-stop shop” mechanism.
E-Commerce: A Success Story in Integration
The Authority’s approach to the e-commerce sector stands as one of its most effective interventions. It has brought a vast segment of Egypt’s digital economy into the tax net through structured cooperation with global platforms and localized education efforts.
This includes:
- Dedicated outreach to influencers and digital entrepreneurs.
- Simplified registration for businesses interacting with global platforms.
- Transparency in tax treatment and obligations.
Restoring Trust Between the State and Taxpayers
Former Deputy Prime Minister for Economic Affairs, Dr. Ziad Bahaa El-Din, reinforced that taxation is a civic responsibility and urged that tax exemptions must be temporary, purposeful, and measurable. He emphasized the need for predictability and clarity in tax policy to support investor confidence and long-term planning.
The message from experts and senior officials was unified: rebuilding trust and promoting compliance will be Egypt’s most critical driver of sustainable development over the next decade.
For further details, clarification, contributions, or any concerns regarding this article, please contact us at editorial@tax.news. We value your feedback and are committed to providing accurate and timely information. Please note that our privacy policy will handle all inquiries.
