Egypt’s Finance Minister Ahmed Kouchouk has announced a new tax relief package aimed at streamlining the tax system and fostering greater trust and collaboration with the business community.
Kouchouk outlined the key elements of the package during the first of a series of meetings with representatives of the commercial and industrial sectors. He met on Sunday with the Federation of Egyptian Chambers of Commerce, led by Ahmed El-Wakil, and the Federation of Egyptian Industries, represented by board member Mohamed El-Bahy, and their delegations.
“We extend to you a hand of trust, partnership, and support with practical and simplified solutions that provide comprehensive solutions to tax challenges, contribute to improving tax services, and simplify and unify transactions in all areas and tax offices,” Kouchouk said. “This includes easy procedures for resolving accumulated tax disputes to drive economic activity.”
Kouchouk highlighted several key measures within the package, including provisions that ensure late payment fees and additional tax do not exceed the original tax amount, providing relief for taxpayers.
Additionally, the government will expand the scope of sample audits to include all compliant taxpayers with clear and specific criteria across all tax centres, regions, and offices.
The government will also simplify tax procedures and declarations to save taxpayers time and effort, leveraging available electronic systems to enhance ease for the tax community.
Kouchouk announced that taxpayers will be allowed to submit or amend tax returns for the period from 2020 to 2023 without penalties, establishing a principle of trust with taxpayers. He also mentioned efforts to support business liquidity through a centralised settlement mechanism and expedite and simplify VAT refund procedures.
Kouchouk also announced a simplified and integrated tax system for small taxpayers, freelancers, and professionals with an annual turnover of up to EGP 15m. “Register and receive incentives and facilities. Don’t be afraid. We will open a new chapter based on trust and support,” Kouchouk assured small taxpayers.
The government will also develop a pre-clearance system to assist taxpayers in planning their projects and accurately understanding future tax obligations.
Kouchouk emphasised the government’s commitment to improving tax performance, stating that an independent party will be engaged to evaluate the implementation of the tax relief package in cooperation with the business community.
“We are serious about improving tax performance, and we will engage an independent party to evaluate the implementation of the tax relief package in cooperation with the business community,” Kouchouk said. “This reflects our commitment to providing relief for the tax community.”
Representatives of the commercial and industrial sectors welcomed the initiative, viewing it as a new chapter of partnership with the business community. They emphasised that a trusting relationship with the tax community leads to increased voluntary compliance.
“Ahmed Kouchouk, the Minister of Finance, has a different and more realistic vision to create a business-friendly environment for investors,” they said. “We are optimistic about this dialogue of openness and honesty, where each party has listened to the other in a spirit of shared national responsibility. We are ready to work together to successfully develop the tax system and leverage technological infrastructure to facilitate matters for taxpayers.”
They added that the tax relief package reflects a clear understanding of the challenges, demonstrating flexibility in assessing the situation and addressing the issue at its root. They expressed their hope for swift implementation of the package to contribute effectively to improving the quality of tax services.
