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Arab Finance: Prime Minister Mostafa Madbouly reviewed the government's second package of tax incentives aimed at fostering partnership with the business community and attracting more investments, according to a statement.
Madbouly reaffirmed the state’s commitment to ensuring the successful implementation of the new measures, which are designed to enhance the taxpayer experience.
Minister of Finance Ahmed Kouchouk said the package aligns with the government’s efforts to transform Egypt's tax system into one centered on customer service, with simplified procedures and expanded incentives for taxpayers.
Tax offices are fully prepared to implement the measures efficiently once the relevant legislation is enacted, Kouchouk added. The package allows the solidarity contribution to be deducted from the tax base, reducing the tax burden on businesses.
To reduce the burden on all taxpayers, the government has extended the suspension of value-added tax (VAT) on machinery and equipment used in industrial production, as well as medical devices, to four years, up from the current two-year period.
It also reduces the VAT rate on medical devices to 5% from 14%, while exempting inputs used in the manufacturing of dialysis machines, kidney filters, spare parts, and related supplies from VAT.
Moreover, Kouchouk indicated that the incentives include a three-year investment incentive to encourage companies to list on the Egyptian Exchange (EGX), a move aimed at increasing market liquidity and attracting more investment. The capital gains tax on securities will be replaced by a stamp tax, alongside reductions in other market-related taxes to stimulate trading activity on EGX.
The minister also confirmed that the 2.5% real estate transaction tax for individuals will remain unchanged, regardless of the number of transactions. He noted that transfers of property between spouses, parents and children, and descendants will remain fully exempt from the tax.
He also elaborated that the government will extend the validity of the law governing the settlement of tax disputes until the end of December to resolve as many disputes as possible voluntarily.
Earlier this month, Kouchouk stated that Egypt would implement the second package of tax facilitation measures immediately after the legislation is officially issued. Such a remark came following parliamentary approval of the reforms aimed at easing the tax burden, boosting investment, and supporting key sectors.
In June, the minister revealed that the country's tax revenues increased by 29% during the period from July 2025 to March 2026, without imposing additional tax burdens due to stronger economic activity, a broader tax base, and ongoing efforts to simplify tax procedures.
