Rasha Abdel Aal, Head of the Egyptian Tax Authority (ETA), held a meeting on Sunday with a delegation from the Egyptian-African Businessmen Association to explore avenues for cooperation and listen to the delegation's suggestions and concerns regarding challenges facing the business community. The meeting aimed to improve the tax system and achieve greater fairness. The meeting was held in line with directives from the Minister of Finance to maintain ongoing dialogue between the Tax Authority and all stakeholders within the tax ecosystem. Abdel Aal emphasised the authority's commitment to building trust with the business community by actively listening to their real concerns through institutionalised and regular dialogue. She noted that the Ministry of Finance and the Tax Authority continue to implement legislative and procedural reforms designed to simplify tax processes, enhance transparency, and encourage businesses in the informal sector to join the formal economy. She highlighted that the first tax relief package, launched in February 2025, represented a significant milestone in resolving longstanding disputes and clarifying tax procedures. Law No. 6 of 2025 introduced a simplified tax regime for businesses with an annual turnover not exceeding EGP 20m, offering fixed tax rates based on business size and broad exemptions to encourage small businesses to formalise. Abdel Aal added that the initiative also set a cap on late penalties at 100% of the original tax amount. Additionally, Law No. 5 of 2025 allows taxpayers to settle estimated tax assessment disputes for tax periods ending before 2020 by paying a portion of the tax owed. For audited tax cases, settlement remains possible by paying the principal amount, with a complete waiver of delay fines or additional tax. She stressed that the authority welcomes all compliant business owners and there is no need to fear tax procedures when there is transparency and full compliance. Abdel Aal also underlined the importance of dealing exclusively with registered taxpayers, whether in traditional transactions or digital platforms. Abdel Aal further explained that the integration of the electronic invoicing system with the risk management platform enables real-time detection of fraudulent invoices. Companies issuing such invoices are immediately blocked from the system, while those dealing with them are also flagged, with no recognition of these invoices permitted in input tax deductions. This approach, she said, supports tax fairness and helps prevent fraud. During the meeting, representatives of the Egyptian-African Businessmen Association commended the authority's reform measures and its expanding communication channels. They affirmed their commitment to supporting the state and increasing tax revenues as a vital source of funding for the national treasury. They described the recent relief measures as a genuine breakthrough, though they noted that certain practical challenges remain. The delegation explained that they approach these issues from a developmental perspective focused on public benefit and acknowledged what they saw as a positive shift in the authority's performance, particularly under Abdel Aal's informed and open leadership. Nevertheless, they pointed out practical difficulties facing honest taxpayers, such as mismatches between declared business volumes and actual tax assessments, and obstacles in recovering customs guarantees without first clarifying tax status. Among their proposals, the representatives suggested forming joint committees between the Tax Authority and the Customs Authority to address issues related to guarantee recovery. They also called for allowing the deduction of reasonable business expenses—such as transport and employee travel costs—even in the absence of official invoices, provided these expenses are proportionate to business size. In addition, they highlighted the importance of addressing the culture of fear associated with taxation. In response, Tax Authority officials listened carefully and pledged to work promptly to resolve the concerns raised by the association's members.
