On 14 September 2026, the Egyptian Tax Authority collaborated with ATC Ashraf Abdel Ghany & Co. to host a specialized workshop dissecting the “Second Tax Facilitation Package” introduced under Prime Ministerial Decree No. 1842 of 2026. The package builds on the initial facilitation measures announced in early 2026 and targets SMEs, export-oriented firms, and new industrial projects. The workshop, attended by over 300 tax practitioners and corporate finance executives, provided granular guidance on eligibility criteria, application procedures, and compliance obligations. Key legal references include Article 18 of the Income Tax Law No. 91 of 2005 (as amended) and the Investment Law No. 72 of 2017. The measures are effective from 1 October 2026 through 30 September 2029, subject to periodic review.
Key Takeaways
- Expanded Tax Holiday for New Investments: Qualifying new industrial and export projects receive a 5-year corporate income tax exemption (100% for years 1-3, 50% for years 4-5) if capital exceeds EGP 50 million and 30% of output is exported. Applications must be submitted via the General Authority for Investment (GAFI) portal within 12 months of commercial operation.
- Accelerated VAT Refunds for Exporters: The package reduces the VAT refund processing cycle from 90 to 45 days for consistent exporters with clean compliance records. A new “Green Channel” classification grants automatic refund approval for taxpayers with zero audit findings over the prior 36 months.
- Simplified Transfer Pricing Documentation: SMEs with annual revenue below EGP 200 million are exempt from preparing full Master File and Local File documentation, requiring only a simplified Country-by-Country Report (CbCR) notification. This reduces compliance burden by an estimated 70% for eligible entities.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement