Major tax reforms to take effect in March

Rasha Abdel Aal, head of the Egyptian Tax Authority (ETA), confirmed that the long-awaited tax relief package, aimed at benefiting both taxpayers and businesses, will be rolled out in March.

She emphasized that the Minister of Finance is closely overseeing the implementation process to ensure the package effectively meets the needs and expectations of Egypt's business community.

Speaking at the annual tax conference hosted by PricewaterhouseCoopers (PwC) Middle East in Egypt, Abdel Aal highlighted the significance of these upcoming reforms. She described them as a pivotal shift in Egypt’s tax policy and a turning point in the relationship between the Tax Authority and the business sector.

The overarching goal of the new tax relief package is to enhance transparency, eliminate bureaucratic obstacles, and establish a genuine partnership between the state, investors, and taxpayers.

A key component of the first phase of the tax relief package is the introduction of sample-based audits across all tax offices. These audits will be targeted based on the risk profile of individual taxpayers, with a focus on high-risk cases.

The move is designed to improve tax compliance while reducing unnecessary audits. To streamline the process, the ETA will publish a list of required audit documents on its website in advance, as well as include these details in an upcoming investor guide. This will help standardize procedures and minimize disputes.

In addition, the Tax Authority is developing standardized audit guidelines that will unify the tax examination process across the country. Seven guidelines have already been completed, with more in progress. The aim is to ensure consistency in audit methodology, and tax officers' performance will be evaluated based on their adherence to these standards.