Cairo: Egypt is set to implement a second package of tax facilitation measures as soon as the legislation is officially promulgated, announced Minister of Finance Ahmed Kouchouk. "We have delivered on every commitment we made," Kouchouk stated in a Ministry statement released on Thursday, July 2, 2026.
According to State Information Service Egypt, the second package will treat the solidarity contribution as a tax-deductible expense, effectively reducing the tax burden on taxpayers. Moreover, value-added tax (VAT) will not apply to transit goods or related services, as part of an effort to enhance Egypt's role as a regional logistics hub and promote transit trade.
The package also includes VAT exemptions for companies providing non-banking financial services and for financial services offered by the National Postal Authority. Furthermore, the suspension of VAT payments on machinery, industrial production equipment, and medical devices will be extended from two to four years to support industry and investment.
The measures will also reduce VAT on medical devices from 14% to 5%, while certain medical device production inputs will be exempt from VAT altogether. Additionally, the VAT refund period for businesses under the simplified tax regime will be shortened to three months, and for other businesses to four months, to improve liquidity.
Incentives are being introduced to encourage companies to list on the stock exchange, replacing the capital gains tax on securities with a stamp duty. The stamp duty on non-resident investors will be reduced to 0.5 per thousand from 1.25 per thousand, ensuring equal treatment with resident investors.
Other provisions include preventing double taxation on dividends between Egyptian parent companies and subsidiaries, increasing deductible interest expenses on loans for national infrastructure projects, and exempting such projects from withholding tax on foreign loans.
Temporary tax cards valid for eight months will be issued to simplify business establishment and licensing procedures, and measures to facilitate the write-off of small debts will be enacted to reduce administrative burdens on financing companies.
The real estate transaction tax will remain unchanged at 2.5% of the sale value for individuals, with exemptions for transfers between spouses, children, and direct descendants. The deadline for tax payment will be extended to 60 days post-transaction. Additionally, the government will extend the tax dispute settlement law until the end of December to encourage voluntary resolution of tax disputes.