Reviewing Tax Reform in Egypt

Updated 12/20/2025 9:00:00 AM

At the end of 2024, Egypt launched a package of tax facilitation measures to ease the burden on the tax community and attract new taxpayers. These measures aimed at unifying, simplifying, and improving the tax services provided, as well as closing all outstanding files and long-standing disputes.

The Minister of Finance also announced a second package, noting that a societal dialogue would begin in November 2025 ahead of its submission to the House of Representatives, scheduled to convene on January 12^th, 2026, and its rollout in early 2026.

In this Factsheet, we provide a brief on the recent and projected tax facilitation measures, shedding light on the tax revenue structure in Egypt.

One of the key features of the first package of facilitation measures was the launch of the simplified tax system targeting enterprises with annual turnover not exceeding EGP 20 million. This system adopts an incentive-based approach designed to reassure taxpayers and simplify registration and payment procedures.
Through the implementation of these facilitations, Egypt succeeded in collecting approximately EGP 97 billion in tax revenues, with 761,000 tax returns submitted by November 2025.
The second package includes 25 measures focused on accelerating tax refund procedures and supporting tax-compliant taxpayers. In addition, a package of reforms to the real estate disposition tax will be introduced and is currently under review by the parliamentary councils.
In fiscal year (FY) 2025/26, Egypt’s tax revenues are estimated to grow by 31.3% year-on-year (YoY) to EGP 2.65 trillion. This accounts for 85.1% of the country’s total public revenues, up from 77% a year earlier.
During the ongoing FY, tax revenue represents 13% of gross domestic product (GDP), compared to 11.8% in FY 2024/25.
Budgeted tax revenues are estimated at EGP 1.44 trillion from income taxes, accounting for 53.3% of total tax revenues, and EGP 968 billion from value-added tax (VAT), representing 36.5%. This is in addition to EGP 135.8 billion from customs tariffs, contributing 5.15%, and EGP 110 billion from other taxes, making up the remaining 4.2%.
The increase in tax revenues is driven by growth across all components, with customs tariffs projected to rise by 36.8% YoY, followed by VAT at an estimated growth rate of 34.3% and income tax revenues growing by 28.7%.
The latest data shows that in the first quarter (Q1) of FY2025/26, tax revenues increased by 37% YoY to EGP 566.2 billion.

By: Amina Hussein