New amendments to Egypt’s Unified Tax Procedures Law, recently approved by the House of Representatives, mark a significant advancement in the nation’s tax reform agenda and are poised to streamline the business landscape. These legislative changes underscore the Egyptian government’s commitment to fostering a more efficient, transparent, and supportive environment for economic activity and investment.
The Egyptian Tax Authority (ETA) has highlighted that these amendments are a crucial step in completing the ongoing tax reform journey and facilitating business operations. Rasha Abdel Aal, Head of the ETA, stated that the authority is actively working under the directives of the Minister of Finance to simplify procedures, ensure tax transparency and fairness, and cultivate stronger trust with the business community.
These legislative updates are designed to bolster the ease of doing business in Egypt. A key provision is the introduction of a temporary tax card, valid for eight months, which is intended to expedite company establishment and facilitate the commencement of economic activities. This measure aims to remove procedural obstacles and enhance flexibility for new businesses navigating the establishment and licensing processes.
Furthermore, the amendments mandate that all entities engaged in commercial, industrial, craft, or professional activities must maintain regular accounting records, whether manually or electronically. This requirement is being implemented while preserving existing tax facilitations for projects with an annual business volume not exceeding 20 million Egyptian Pounds, as stipulated by Law No. 6 of 2025, which allows for simplified record-keeping for these enterprises.
The ETA confirmed that the approval of these amendments represents a new milestone in the tax reform path pursued by the Egyptian state. The government’s keenness to build a more efficient and flexible tax system is evident, with the aim of improving the investment environment and simplifying business practices. These changes are in direct implementation of the Minister of Finance’s directives to accelerate the second package of tax facilities, simplify taxpayer procedures, and consolidate principles of transparency and fairness.
The temporary tax card, in particular, is designed to support the speed of company establishment and facilitate the commencement of economic activity. Its use is restricted to issuing electronic invoices and receipts during its validity period, enabling taxpayers to complete their establishment and licensing procedures more flexibly. This initiative aligns with the Ministry of Finance’s broader vision of removing procedural impediments and stimulating investment.
The Egyptian Tax Authority continues to advance the Ministry of Finance’s objective of constructing a modern and advanced tax system. This system seeks to achieve a balance between safeguarding public treasury rights and offering enhanced facilities to taxpayers, thereby contributing to the stimulation of economic activity, investment, and the achievement of comprehensive national development goals.
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