The Egyptian Tax Authority (ETA) has issued Executive Instructions No. (45) for the year 2025 regarding the mechanism for taxpayers to deal with exported services, according to a statement from the office of ETA head Rasha Abdel Aal. The move follows directives from the Minister of Finance and aims to standardise the application of tax treatment related to services exported abroad, Abdel Aal said. New Instructions and Definition Abdel Aal stated that the issuance of these instructions is intended to reinforce tax commitment, simplify procedures for taxpayers, and ensure the correct application of the provisions of the Value Added Tax (VAT) Law No. 67 of 2016 and its executive regulations. The Executive Instructions define an exported service as a service provided by a registered entity inside Egypt to a recipient of the service outside the country. This applies whether the service is provided by a resident or non-resident person, as long as the service is delivered from within Egypt. Remote Services and Exclusions The instructions clearly cover the controls for remotely provided services and those that do not require the physical presence of the service provider or the recipient. According to the ETA head, the tax is applied at a zero rate when a registered entity inside Egypt provides services to a client who is not located inside the country. The service provider retains all rights to deduct tax on production inputs (input tax credit), either through the reverse charge mechanism or according to the tax system applied in the recipient's country. Abdel Aal also confirmed that certain situations are not treated as exported services, including: * Services related to immovable properties inside Egypt. * Services that require the physical presence of the service provider and the recipient inside the country. Comprehensive Guide Published To aid taxpayers, the ETA has prepared a comprehensive guidance manual in both Arabic and English. This manual includes a detailed explanation of the concept of exported services, the rules for determining the place of taxation, the required documents to classify a service as exported, and applied examples illustrating the tax treatment for common exported service scenarios. The ETA head emphasised the Authority's commitment to enhancing effective communication with taxpayers and citizens, and to providing guidance that ensures the clarity and ease of application of tax obligations, supporting the stability of domestic and international transactions. The guidance manual is available on the ETA's website.
The English version can be accessed at: https://www.eta.gov.eg/sites/default/files/2025-11/guidlines_for_exported_services_in_egypt_english.pdf. Would you like to search for the full text of the Executive Instructions No. (45) for the year 2025?
