Abdel-Aal proposed establishing a permanent joint committee between the ETA and the Chinese Chamber to institutionalize dialogue and drive deeper collaboration. She emphasized that recent legislative reforms—enacted through Laws 5, 6, and 7 of 2025—have significantly improved the tax landscape, fostering greater certainty and trust between the state and investors.
“These laws represent a strategic turning point in our approach to taxation,” Abdel-Aal stated. “They resolve long-standing disputes and introduce a business-friendly framework that promotes development, transparency, and investor confidence.”
The new tax environment also includes simplified and integrated mechanisms for small and micro-enterprises. Businesses with annual revenues below EGP 20 million now benefit from a streamlined tax system, offering rates as low as 0.4% for those earning under EGP 500,000, and scaling to 1.5% for those earning up to EGP 20 million. Eligible taxpayers are provided free technical support and electronic point-of-sale (POS) systems to facilitate compliance.
Institutional reforms have accompanied the legal changes. Abdel-Aal announced the formation of an Advance Rulings Unit, designed to offer tailored advisory services and accurate data for investors conducting feasibility studies. Additionally, a new Complaints Unit has been established to ensure swift resolution of taxpayer concerns, while the Investor Support Unit has been expanded to deliver more effective assistance. New systems for Central Clearing and VAT refunds have also been introduced, cutting average refund processing times to just 22 days from the date of application.
Ashraf El-Zayat, Head of the ETA’s Audit Sector, elaborated on Law 5 of 2025, which encourages economic formalization by exempting companies from past tax liabilities and allowing them to register with the ETA without penalty. The law permits businesses to file or amend tax returns for the period from 2020 to its enactment without facing fines.
“This is a major step toward integrating more informal businesses into the formal economy,” El-Zayat said.
To promote transparency and consistency, Saeed Fouad, Advisor to the ETA Chair, noted that the authority has issued comprehensive auditing guidelines and reference materials outlining taxpayer rights, obligations, and available incentives. These resources are now accessible in multiple languages through the ETA’s website. He also revealed that the authority is preparing to launch its first official English-language website to expand global outreach and promote Egypt’s tax culture internationally.
Representing the Chinese business community, Chang Wei-Tsai, President of the Chinese Chamber of Commerce in Egypt, expressed appreciation for the ETA’s reforms and continued support. He emphasized the strong trade and investment relationship between the two countries, particularly within the Suez Canal Economic Zone, which has become a model for South-South cooperation.
“Our partnership has not only strengthened trade ties but has also created more than 100,000 jobs for Egyptians,” Tsai said. He also signaled growing interest among Chinese companies in supporting Egypt’s transition to a green economy through investments in solar, wind, and hydropower projects.
As Egypt continues to reform its tax regime and improve investor services, officials hope that stronger bilateral cooperation—particularly with strategic partners like China—will pave the way for sustainable economic growth and greater integration into the global investment landscape.