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 Rasha Abdel-Aal, Head of the Egyptian Tax Authority (ETA), confirmed that the draft amendments to the Value Added Tax (VAT) law, currently under debate in the House of Representatives, introduce critical facilities for taxpayers. Chief among these is reducing the period for refunding the eligible tax credit balance to four consecutive tax periods (four months) instead of six months, a move aimed at boosting corporate cash flows and enhancing businesses' capacity to expand and sustain operations.

The ETA Head explained that the proposed amendment aligns with the Ministry of Finance’s directives, led by Minister of Finance Ahmed Kouchouk, to expedite tax refund procedures and alleviate financial burdens on registered taxpayers. This is particularly focused on the productive, industrial, and service sectors, thereby injecting greater liquidity into the market and stimulating broader economic activity.

Abdel-Aal added that the draft law offers an additional privilege tailored for enterprises subject to the Tax Facilities Law—specifically those with an annual business volume not exceeding EGP 20 million. These small and medium-sized enterprises (SMEs) will be eligible to claim their credit balance refunds after just three months, a strategic incentive designed to support the SME sector and encourage formal economic integration.

Concluding her remarks, Rasha Abdel-Aal emphasized that accelerating credit balance refunds addresses a key demand of the business community. It further reflects the state’s commitment to building a more efficient and flexible tax ecosystem rooted in partnership and trust with taxpayers, ultimately improving the investment climate and driving industrial growth.