Taxes have been a significant challenge in attracting investment to Egypt. Consequently, the government has undertaken efforts in recent years to enhance the tax system through the implementation of various projects and initiatives. These measures aim to stimulate the investment environment, simplify procedures, and integrate the informal economy to ensure tax justice. However, some challenges have arisen during the development and mechanization plans of the new tax system. In response, the Egyptian Tax Authority has adopted a new approach by intensifying communication with the business community and investment circles. This exchange of visions aims to foster a more favorable investment environment. Within this frame of reference, Canada Egypt Business Council and the Egyptian Business Council for International Cooperation held a forum entitled “The Vision of the Tax Administration in Egypt and the Challenges of Attracting Investments” moderated by Mr. Khaled Abu Zahra; Egypt Tax Partner & GCC Tax Leader – MEC Chairman of the Taxation and Customs Committee – CEBC & ECIC.

In his opening remarks, Mr. Motaz Raslan chairman of CEBC and ECIC welcomed the forum guests: Dr. Fayez El Dabaany; Head of the Egyptian Tax Authority, Dr. Hisham El Hamawy; Advisor to the Minister of Finance, Ms. Rasha Abdelaal; Assistant Head of the Tax Authority and Dr. Sayed Sakr; Assistant Head of the Tax Authority, and thanked the attendees for joining in. He explained that the discussion would revolve around clarifying the significant challenges facing the authority in achieving tax justice, as well as responding to all inquiries from the audience in light of the developments and updates witnessed by the new tax system.

Then the floor was given to Dr. Fayez El Dabaany; Head of the Egyptian Tax Authority started his speech highlighting that the executive regulations of Law No. 30 of 2023 amending some provisions of the Income Tax Law will be issued within the next few days, after President Abdel Fattah El-Sisi ratified them last June.

He added that the value of the tax collected from self-employed people is much greater than that collected from the salaries of workers

Dr. Fayez El Dabaany commented on the short duration of tax examinations, highlighting that with the implementation of the electronic invoice system, customers will have the right to request an additional 14 days to submit the necessary examination papers. He emphasized that the existing 28-day period, from the date of notification, is sufficient to complete this procedure.

Furthermore, he mentioned that through the “pre-declaration” process, investors can visit the authority to review their project details and gain insights into the value of their tax transactions before commencing their investments

El Dabaany said that the authority has received about 786 million electronic invoices so far, considering that its system is working well, and there is strong interest in it for its ability to control society.

He mentioned that the Authority receives approximately 39 million electronic invoices per month, noting that it received approximately 1.9 million invoices in one day. He denounced the act of issuing fake invoices, considering it to be treated as a crime that requires referral to the prosecution.

Ms. Rasha Abdelaal, Assistant Head of the Tax Authority, emphasized that the Authority is making every effort to efficiently complete the necessary paperwork. This approach not only accelerates performance but also minimizes effort, creating a favorable environment for the benefit of our customers.

She highlighted that the steps taken by the Authority contribute to minimizing field inspection operations to the lowest possible degree, and transactions that cannot be verified through the new electronic system will also be subjected to them.

She indicated that the Authority is currently working on finalizing the “case creation screens” in order to close all old files and provide details through the new programs that are being implemented.

In the same context, Dr. Sayed Sakr; Assistant Head of the Tax Authority, mentioned that the electronic system will be implemented gradually. He noted that it has already been activated in many governorates and in points affiliated within the department, and once it is fully implemented it will bring satisfaction to everyone.

He added that the Authority is currently engaged in awareness-raising operations and accelerating the implementation of the case creation screens. Additionally, the Authority is directly communicating with customers to provide alerts and raise awareness.

Dr. Hisham El-Hamawy; Advisor to the Minister of Finance, emphasized that organizing this symposium indicates that the Ministry of Finance and the Egyptian Tax Authority’s openness to society and their commitment to identifying and resolving problems through effective communication.

El Hamawy pointed out that this meeting wasn’t the first meeting with the Egyptian Canadian Business Council, but rather followed by several prior meetings. This indicates the Ministry of Finance and the Egyptian Tax Authority’s willingness to listen to constructive criticism and address the challenges faced by the tax community, which are imposed by practical realities.

Then the floor was opened for questions and answers where many inquiries were discussed by the participants of the seminar.