ETA Continues To Upgrade Services, Expand Engagement With Business Community: Director

(MENAFN- Daily News Egypt) Rasha Abdel Aal, Head of the Egyptian Tax Authority (ETA), said the Authority is continuing to develop its services and expand communication channels with the business community as part of efforts to ensure tax stability and support economic development.

In a statement issued on Tuesday, Abdel Aal said the second package of tax facilitations reflects the directives of Minister of Finance Ahmed Kouchouk to improve the investment climate and ease burdens on partners within the tax system. The measures are in line with strengthening a partnership approach based on trust and voluntary compliance.

She explained that the Minister of Finance stressed the importance of maintaining full openness to proposals from the business community and building on the outcomes of the first facilitation package. These efforts have translated into a new set of incentives and measures aimed at improving tax services and simplifying procedures.

Abdel Aal noted that the second package includes a range of incentives for compliant taxpayers, most notably the introduction of the“Excellence Card,” which is expected to encourage voluntary compliance and enhance stability in tax dealings.

She added that the facilitations also include accelerating the refund of value-added tax (VAT), which will have a direct positive impact on improving companies' cash flows. Taxpayers will also be allowed to benefit from the simplified tax system for the 2023 and 2024 tax periods.

The package further includes measures to support the capital market, such as shifting from capital gains tax to stamp duty on stock exchange transactions. In addition, tax incentives will be granted to encourage companies to list on the stock exchange for a three-year period, a move expected to boost trading volumes and investment activity.

Abdel Aal said the Authority is also preparing to launch an integrated electronic system to facilitate company liquidation and closure procedures, alongside an electronic application for real estate transactions that enables easy notification and payment of due taxes.

She confirmed that the package includes a legislative amendment to the VAT Law, under which medical devices will be subject to a reduced VAT rate of 5% instead of 14%. Inputs, spare parts and supplies related to dialysis equipment and kidney filters will be exempt from VAT, in support of the healthcare sector, easing burdens on citizens and encouraging local manufacturing.

Abdel Aal also highlighted the existence of an advisory platform through which all ETA issuances are presented to the business community prior to implementation. This mechanism allows for feedback and proposals to be incorporated, improving the quality of regulations and facilitating their smooth application.

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