Egypt Unveils Second Tax Reform Package to Boost Investment and Industrial Growth
The Egyptian government has announced a comprehensive second package of tax facilities designed to stimulate capital markets, support industrial production, and alleviate financial burdens on the business sector.
Finance Minister Ahmed Kouchouk outlined the measures, which emphasize a shift toward a “customer-centric” tax environment focused on simplification and long-term economic incentivization.
A central pillar of the new policy is the transformation of the stock market tax framework.
The government plans to replace the existing capital gains tax with a stamp duty to enhance trading liquidity.
Furthermore, to drive market growth, a three-year investment incentive will be introduced for companies listing on the Egyptian Exchange, aiming to increase overall trading volumes and attract domestic and foreign investment.
Industrial and healthcare sectors will also see significant relief. The suspension period for VAT payments on industrial machinery and medical equipment has been doubled from two to four years.
Additionally, the VAT rate for medical devices is set to drop from 14% to 5%, with total tax exemptions applied to essential components for kidney dialysis. To support the wider business community, the government is permitting the deduction of solidarity contributions from the tax base and extending the tax dispute resolution law through December.
Regarding property, the government has introduced a full tax exemption for real estate transfers between direct family members, while maintaining the standard 2.5% tax on other property transactions.
