Rasha Abdel Aal, Head of the Egyptian Tax Authority (ETA), has highlighted the pivotal role of community dialogues in building robust partnerships with taxpayers and investors. These discussions, initiated by the Ministry of Finance in collaboration with the ETA, are essential for fostering open communication with these stakeholders, who are seen as critical partners in economic growth. Abdel Aal emphasized that this approach demonstrates the government's dedication to establishing an attractive and stable investment climate that prioritizes mutual collaboration and shared interests. Speaking at the panel discussion "Digital Transformation and the New Tax Relief Package: Impact on Investment" during the Cairo ICT Conference last week, Abdel Aal underscored the ETA's efforts to address taxpayer and investor challenges. The authority aims to eliminate obstacles and develop tailored solutions that encourage investment expansion, generate employment opportunities, and enhance state revenues through increased tax compliance, in line with national sustainable development goals. She explained that the ETA conducted in-depth studies to pinpoint key issues affecting taxpayers, which informed the creation of the first tax relief package. After its launch, a series of community dialogues ensured that the measures met the specific needs of various sectors. The package simplifies tax processes, reduces financial burdens, and clarifies taxpayer obligations. One key element of the package is an integrated tax system for small businesses with annual revenues up to EGP 15 million. This unified system covers all tax liabilities, including income tax, VAT, stamp duty, and development fees, while offering incentives such as exemptions from stamp duty, registration fees, capital gains taxes, and dividend taxes. It also simplifies tax calculations for income tax, reduces VAT filings to quarterly, and limits payroll tax filings to an annual reconciliation. Moreover, tax audits will be deferred for five years, and retroactive claims will not apply to businesses voluntarily registering with the ETA.
Abdel Aal stressed the importance of public outreach to the success of these initiatives. The ETA has launched a comprehensive media campaign to educate taxpayers about the benefits and details of the new measures. These efforts are complemented by ongoing community dialogues to clarify procedures, address concerns, and build trust between the tax authority and taxpayers. She emphasized that the initiatives signify a strategic shift in the ETA's approach, focusing on fostering compliance and its positive impact on the national economy. Through consistent outreach and open communication, the ETA aims to create a climate of trust and cooperation, ensuring taxpayers benefit from streamlined processes while enhancing the tax system's efficiency. Highlighting the authority's investment in human resources, Abdel Aal stated that ongoing training programs are enhancing staff skills and instilling a culture of transparency and collaboration. This approach ensures that the ETA workforce is equipped to provide efficient and supportive services to taxpayers, fostering a positive and professional experience. On digital transformation, El-Sayed Saqr, Deputy Head of the ETA, discussed the establishment of the E-Commerce Unit, a key initiative addressing the rise of online transactions. This unit supports digital entrepreneurs, content creators, and online sellers, including bloggers and YouTubers, by streamlining the tax registration process and clarifying obligations. Saqr added that the unit actively engages in public outreach through events, workshops, and a dedicated e-commerce section on the ETA's website. Social media channels further provide accessible information and guidance to digital business owners. He concluded that these efforts are part of a broader strategy to integrate the informal economy into the formal tax system and support the digital economy's growth. By maintaining a strong presence in major events and grassroots awareness activities, the ETA is fostering an inclusive and equitable tax environment that aligns with the evolving dynamics of modern commerce.
