Egyptian President Announces Tax Incentive Package Volume II

Egyptian President Abdel Fattah Al‑Sisi ordered the preparation of a Tax Incentive Package Volume II on 2 December 2025 in Cairo. The measure aims to attract additional foreign and domestic investment. The package is expected to be announced shortly.

The package targets compliant taxpayers by offering incentives, simplifying procedures, and strengthening compliance. It includes reforms of the VAT (PPN) restitution mechanism, the creation of a premium tax‑support centre, and specific incentives for the real‑estate sector such as easier reporting and a seven‑year assessment cycle. Under Volume I, the government collected an extra EGP 78 billion (about Rp 27.3 trillion) and uncovered economic activity worth EGP 1 trillion (about Rp 350.18 trillion).

Authorities anticipate that the package will boost trust between the tax authority and taxpayers and improve the investment climate. Parallel customs and excise reforms aim to remove trade barriers and increase exports. Overall, the policy could raise state revenue and support economic growth.