Private Sector Investment in Egypt Rises 73% in Previous Fiscal Year

Private sector investment in Egypt grew by 73% during the previous fiscal year and rose by 42% in the first quarter of the current fiscal year, according to Ahmed Kouchouk, Egypt’s Minister of Finance.

Kouchouk shared the figures during an event hosted by the Alexandria Businessmen’s Association in Alexandria.

The minister also stated that more than 600,000 taxpayers voluntarily submitted new or amended tax returns, resulting in an additional EGP 80 billion in tax payments and revealing a total business volume of approximately EGP 1 trillion.

Tax revenues increased by 35% during the previous fiscal year and rose by 31.5% in the first eight months of the current fiscal year, according to the ministry, without any changes to tax rates.

Kouchouk also outlined a forthcoming second package of tax facilitation measures developed after more than 40 community dialogue sessions with business stakeholders. Among the planned measures is the introduction of an “Excellence Card” for compliant taxpayers, which will provide priority in tax refunds, inspections and advance rulings.

The government also plans to offer the first 100,000 participants joining a simplified tax system access to low-cost, facilitated financing. The minister said three advanced tax centres managed by the e-Tax system will provide specialised services on behalf of the Egyptian Tax Authority.

Additional reforms under discussion include addressing double taxation on dividends between subsidiary and holding companies and launching a mobile application for the real estate disposal tax to enable electronic notifications and payments.

Other proposed incentives include reducing value-added tax on medical machinery and equipment from 14% to 5%, exempting electronic payment and collection services from value-added tax, and exempting individuals from real estate disposal tax when selling property to first-degree relatives.