Egypt's finance ministry announced Wednesday new measures to simplify value-added tax (VAT) procedures and reduce costs for businesses, in a move aimed at improving compliance and reinforcing investor confidence. Finance Minister Ahmed Kouchouk issued two decrees amending the VAT law's executive regulations and setting an accounting framework for applying the tax to construction and contracting projects that began before the July 2025 amendments took effect and remain under execution. Under the new rules, companies can now deduct VAT on financial and construction-related input costs — a significant expansion of deductible expenses that previously covered only production, distribution, and administrative costs, the ministry said in a statement. The reforms also extend the suspension period for VAT payments on disassembled production lines purchased locally or imported in separate shipments, starting from the purchase or clearance of the final component. Rasha Abdel Aal, head of the Egyptian Tax Authority, said the changes are part of a broader effort to promote clarity and predictability in Egypt's tax system, strengthening the government's partnership with the business community. Attribution: Amwal Al Ghad English
