Egypt Boosts Local Production and Export Efforts through Tax Dispute Resolution: The Success Story of the Egyptian Ministry of Finance

The Egyptian Ministry of Finance has been successful in resolving over 17,000 tax disputes worth more than 15.4 billion pounds within the past 10 months, following the implementation of Law 153 of 2023. Dr. Mohamed Maait, the Minister of Finance, directed the Tax Authority to prioritize resolving disputes for establishments or companies with a business volume of up to 10 million pounds using the simplified peremptory tax system. This approach is aimed at avoiding closing any factory or business and boosting local production and export efforts.

To further streamline tax dispute resolution, the Ministry of Finance is currently working on developing tax appeal committees, stabilizing taxpayer positions, and reducing backlog appeals before these committees. By doing so, it aims to expedite dispute resolution, promote tax justice and establish governance, transparency and integrity in tax evaluation principles to create a more attractive environment for investment.

Dr. Mohamed Maait recently submitted a draft law to the Council of Ministers to renew the law on ending tax disputes and facilitate dispute resolutions until January 2025. This initiative is part of ongoing efforts to simplify mechanisms for settling tax disputes outside court systems to support financiers and stimulate investments while ensuring that the state receives its rightful revenues. The Ministry is encouraging investors to expand their activities in Egypt and attract both local and foreign investments aligning with the country’s economic reform goals.

In addition to enhancing tax systems, efforts are being made by the Ministry of Finance to improve electronic platforms and utilize artificial intelligence applications in completing annual tax exams. The goal is to enhance the overall efficiency of the tax system while benefiting taxpayers while supporting economic growth and attracting investments necessary for achieving development goals.