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elwatan news – New Tax Facilitation Measures to Enhance Informal Economy in Egypt
Engineer Mohamed Mendy, a board member of the Chamber of Woodworking Industry at the Federation of Egyptian Industries, praised Law No. 5 of 2025 as a significant step towards enhancing the Egyptian economy. This law aims to integrate the informal economy into the formal system by offering tax facilities. It allows unregistered taxpayers to voluntarily register within a specified period, exempting them from tax accounting for previous periods, thereby encouraging small and emerging companies to join the formal economy without bearing financial burdens from past periods. Additionally, the law provides mechanisms for settling existing tax disputes, enabling taxpayers who underwent estimated assessments before January 1, 2020, to apply for dispute resolution by paying only 30% of the due tax. These measures are expected to expand the tax base, increase government revenues, and improve the business and investment environment in Egypt. Furthermore, these facilities will encourage tax compliance, especially as they support small and medium-sized enterprises that constitute a significant part of the national economy. This law represents a qualitative shift in economic reform policies and reflects the state’s efforts to achieve a more transparent and sustainable business environment.