Ahmed Kamel – Egypt Daily News
The House of Representatives Planning and Budget Committee presented a comprehensive report regarding a newly proposed government draft law to amend the national income tax legislation. Dr. Mohamed Soliman, the head of the Planning and Budget Committee, outlined the structural tax changes designed to support corporate taxpayers during an official parliamentary session.
The official adjustments are part of a secondary package of tax facilities prepared by the government within a broader financial reform program executed by the Ministry of Finance. The primary objective of the updated legislation is to simplify the domestic tax ecosystem, build trust with the local business community, and stimulate private sector investment.
New Measures Simplify Bad Debt Tracking and Cut Corporate Administrative Burdens
The philosophical foundation of the proposed draft law centers heavily on streamlining administrative procedures and minimizing compliance costs for local companies. The committee successfully integrated new legislative reliefs regarding the formal tax treatment and recognition of bad corporate debts.
Lawmakers proactively raised the maximum financial limit for bad debts exempted from mandatory judicial proceedings to ten thousand Egyptian pounds instead of the five thousand pounds initially suggested. The committee also eliminated several restrictive government conditions to significantly reduce the administrative pressure placed on developing enterprises.
Clear Rules Clarify Real Estate Transaction Taxes and Extended Payment Windows
The updated income tax law thoroughly redefines the regulatory provisions governing real estate disposal taxes to protect ordinary property owners. The Planning and Budget Committee clarified that repeating property sales does not automatically classify an individual as a professional commercial trader.
The legislation maintains that standard real estate sales will remain subject to a flat tax rate of two and a half percent. Furthermore, the parliament officially extended the mandatory tax payment window to sixty days instead of the previous thirty-day deadline to improve cash flow flexibility.
Capital Gains Tax Abolished on Listed Shares to Prevent Double Taxation
The legislative amendments officially terminated the collection of capital gains taxes on all financial transactions involving shares listed on the Egyptian Exchange. The securities will continue to be subject strictly to stamp duty to completely eliminate the risk of double taxation on the trading floor.
The updated framework also introduces fresh financial incentives for individuals investing in unlisted corporate shares across the country. These combined privileges are explicitly designed to encourage long-term capital retention and attract regional holding companies into the domestic market.
