Egypt’s Second Tax Facilitation Package: Key VAT Reforms

December 25, 2025

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On December 15, the Egyptian Ministry of Finance announced a second package of tax facilitation measures to make tax compliance easier, broaden the tax base, and improve trust between the Tax Authority and the business community. The government's initiative is a policy shift toward cooperation rather than enforcement, responding directly to long-standing investor concerns about the tax system's complexity and administrative burden.

Key Features and VAT Measures

A key feature of Egypt's second tax facilitation package is the creation of a White List for high-compliance taxable persons, designed to clearly distinguish them and grant them tangible advantages. A complementary feature to this one is the Excellence Card, which provides priority access to specialised tax services, alongside additional benefits linked to consistent compliance over time.

Notably, the VAT administration is in focus of the package. Therefore, VAT refund departments will be restructured to simplify procedures and reduce delays, addressing a primary liquidity concern for businesses. Taxable persons included on the so-called White List will benefit from accelerated VAT refunds, with payments processed within one week.

The reform of VAT administration is a continuation of recent progress, with VAT refunds reaching EGP 7.2 billion (around USD 151 million) in the 2024/2025 fiscal year, representing a 151% increase compared to previous periods. Based on those results, the Ministry of Finance plans to expand refund volumes further to strengthen business cash flow and support economic activity.

Other VAT measures include the removal of VAT on transit goods and the services directly relating to them, the reduction of VAT on medical devices from 14% to 5%, and the exemption of components and supplies used in dialysis machines and kidney filters. Additionally, the package extends the VAT suspension on machinery, equipment, and medical devices to four years.

Conclusion

The second tax facilitation package reinforces the government’s objective of building a partnership-based tax environment, with clear goals of improving compliance, encouraging investment, and strengthening confidence in the tax system. The VAT measures included in the package align tax policy with broader economic and social objectives by supporting public health and reducing financial pressure on key sectors.

Source: Minister of Finance

What is Egypt’s second tax facilitation package aiming to achieve?

The second tax facilitation package aims to simplify tax compliance, broaden the tax base, and improve trust between the Tax Authority and the business community by shifting toward a more cooperative, partnership-based approach.

What is the White List introduced by the Egyptian Ministry of Finance?

The White List is designed for high-compliance taxable persons and clearly distinguishes them by granting tangible advantages, including faster procedures and preferential treatment by the tax administration.

How does the Excellence Card benefit compliant taxable persons?

The Excellence Card provides priority access to specialised tax services and additional benefits that increase over time as taxable persons demonstrate consistent compliance.

How will VAT refunds change under the new tax facilitation measures?

VAT refund departments will be restructured to simplify procedures and reduce delays, with White List taxable persons receiving accelerated VAT refunds processed within one week.

What recent progress has Egypt made in VAT refunds?

In the 2024/2025 fiscal year, VAT refunds reached EGP 7.2 billion, a 151% increase compared to previous periods, and the Ministry of Finance plans to expand refund volumes further.

Which VAT rate reductions and exemptions are included in the package?

The package removes VAT on transit goods and related services, reduces VAT on medical devices from 14% to 5%, exempts dialysis machine components and kidney filters, and extends the VAT suspension on machinery and medical devices to four years.

VAT Compliance and Reporting

Tax Rates

VAT

Medical

Logistics and Transportation

Retail