Tax Updates and Corporate Facilitation Measures in Egypt for 2025

The year 2025 witnessed the issuance of a series of tax legislations and executive decisions aimed at enhancing the investment climate, simplifying procedures, and reducing the compliance burden on companies, alongside a gradual transition toward a more efficient and transparent digital tax system. The most notable of these developments was the new Income Tax Law No. 6 of 2025, amendments to the Unified Tax Procedures Law, and a package of administrative facilitations issued by the Egyptian Tax Authority.

First: Law No. 6 of 2025 on Income Tax – Key Features

The new law was enacted to address several practical challenges that emerged during the application of the former income tax legislation and to achieve four primary objectives:

Reforming the tax rate structure and reducing the burden on corporations
Enhancing tax certainty
Supporting the digital economy and platform-based commerce
Full digital transformation of the tax administration system

Second: Substantive Amendments to the Unified Tax Procedures Law
Significant amendments were introduced in 2025 to the Unified Tax Procedures Law, including

1.Simplifying registration and disclosure procedures
• Enabling fully electronic tax registration without the need to visit tax offices.
• Expanding unified corporate disclosures to integrate data between income tax and value-added tax.

2.Reducing the tax audit period
• Limiting audit periods to a maximum of three years for small and medium-sized enterprises.
• Restricting the authority to extend audit periods without objective grounds.

3.Transitioning to electronic notifications
• Tax notifications, applications, and correspondence have become fully electronic and legally binding.
• Full adoption of electronic signatures for filing returns and submitting documents.

Third: New Facilitation Measures and Incentives for Companies

1.Facilitations for start-ups and small and medium-sized enterprises (SMEs)
• Phased tax exemptions of up to five years from commencement of operations for certain activities.
• Reduced tax rates for small and micro-enterprises.
• Allowing accelerated depreciation of capital expenditures.

2.Facilitations for industrial companies
• Allowing tax deductions linked to the employment of local labor.
• Incentives related to domestic manufacturing and import substitution.
• Exemptions for strategic industries and renewable energy sectors.

3.Support for exporting companies
• Enhancing the VAT refund mechanism and obligating the Tax Authority to adhere to fixed refund timelines.
• Additional deductions for new exporters during initial years of operation.

Fourth: Impact of These Amendments on the Business Environment
1.Strengthening confidence and transparency
2.Attracting investment
3.Reducing cost and time burdens

Conclusion
The 2025 tax updates represent a significant shift in Egypt’s tax policy, as the State continues to revise tax legislation to alleviate burdens on investors. The reforms combine relief and incentives on one hand with digitization and regulatory discipline on the other. While practical implementation will inevitably reveal the need for future complementary amendments, the current legal framework stands as a positive step toward: • Increasing tax revenues without overburdening taxpayers • Supporting productive enterprises • Improving the investment climate • Transitioning to a fully integrated digital tax system

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