Political tax in Egypt is developed and the multiplicity of types of taxes is the biggest challenge
Ashraf Hajar, Director of the Egypt and Middle East Center for Financial and Economic Studies, Egypt follow the footsteps of developed countries in setting its tax policy, pointing out that government is working to implement tax policies
Ashraf Hagar - • General Topics
Egypt is following in the footsteps of developed countries in setting its tax policy
CopyAshraf Hajar, Director of the Egypt and Middle East Center for Financial and Economic Studies, stressed that Egypt is following in the footsteps of developed countries in developing its tax policy, pointing out that the government is working to implement tax policies and achieve its goals during the previous years in light of violent economic crises that require governments flexibility and innovation in applying policies to achieve the desired goals.
Hajar pointed out that the challenges facing the tax administration in Egypt are represented in the multiplicity of types of taxes, as the direct tax contains more than 6 types of taxes, the length of time for the completion of tax disputes, and the multiple amendments to tax legislation.
He explained that one of the most important measures taken by the tax administration to meet these challenges is to increase the tax base by automating tax work through the introduction of modern tax systems for registering electronic invoices in order to try to introduce the informal economy to the official system and increase tax exemptions on direct taxes for individuals, which reached in the last amendment within 60,000 tax exemptions annually on the tax base for individuals, and expand support for companies with export activities.
He added that Egypt's tax policy strategy 2024/2030 for community dialogue next month, and the submission of the new draft law on income taxes for community dialogue next month, and accelerating the pace of customs release for strategic goods, medicines and production requirements, in addition to reducing the tax burden on small and medium enterprises.
He pointed out that countries that have succeeded in implementing innovative tax policies, including Singapore by adopting innovative tax policies such as the low and simple direct tax system, and providing tax exemptions for startups and innovative companies, which contributed to making it a global center for business and investments.
Hajar added that the tax system in Switzerland attracts companies and individuals from all over the world, where increased tax competitiveness and political stability are important factors in attracting investments.
The UAE has also adopted innovative tax policies such as imposing direct taxes on foreign companies at very low or exempt rates, making it an attractive destination for business and investments in the region, and the Netherlands is one of the leading countries in adopting innovative tax policies, such as the international corporate tax system, which attracts large companies to establish their headquarters in the country.
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