Why You Should Use eDariba to Benefit from the New Tax Facilitation Laws

Article Contents

Introduction

Have you heard about the new tax facilitation laws in Egypt for 2025? Wondering how these facilitations might affect your project or company? And how you can benefit from them to reduce your tax burden and save money?

If you’re looking for answers to these questions, you’ve come to the right place. In this comprehensive article, we’ll cover everything you need to know about the new tax facilitation law in Egypt for 2025 (including Laws No. 5, 6, and 7), and how the eDariba platform can help you maximize the benefits from these facilitations.

Understanding the New Tax Facilitation Law 2025 and Its Objectives

The new tax facilitation law is a package of measures and incentives announced by the Egyptian Ministry of Finance to ease the tax burden on investors and companies, especially small, medium, and emerging enterprises. This package includes Laws No. 5, 6, and 7 of 2025, which work in conjunction with previous laws such as Law 153 of 2022.

This package was designed to achieve three main objectives:

Relief: Through reducing tax rates and providing exemptions for small projects.
Certainty: By providing a clear and stable tax environment.
Simplification: To facilitate tax procedures and reduce bureaucracy.

This reform supports comprehensive digital transformation, such as submitting simplified returns or filing VAT returns quarterly instead of monthly. This cannot be effectively achieved without relying on modern systems like E-invoicing and E-receipts. This is where the eDariba platform comes in, offering integrated solutions to facilitate tax compliance.

Key Provisions of Laws 5, 6, and 7 of 2025 for Tax Facilitation

The new tax package includes three main laws aimed at supporting the business community:

1. Law No. 5 of 2025 (Status Settlement)

Aims to settle taxpayers’ status and enables:

Settlement of disputes arising from estimated assessments for periods before 2020 by paying a percentage of the tax.
Full exemption from late payment charges when paying the original tax for ledger-based cases.
Possibility to submit or modify tax returns for years (2020-2023 for income) and (2020-2024 for VAT) without financial penalties.

2. Law No. 6 of 2025 (Supporting Small Enterprises)

Targets projects with annual turnover not exceeding 20 million EGP:

Tax rates starting from 0.4% (for turnover under 500,000 EGP) up to 1.5% (for turnover up to 20 million EGP).
Technical support and training for beneficiaries to enhance voluntary compliance.
Simplified and motivating tax system for small establishments and entrepreneurs.

3. Law No. 7 of 2025 (Procedural Amendments)

Aims to improve the taxpayer experience through:

Simplifying return forms: Eliminating unsupported returns for legal entities (2025) and individuals (2026).
Expanding the sample audit system: To include all tax centers instead of comprehensive audits.
Simplified returns for the simplified system: Quarterly VAT return + annual employment income return.

Beneficiaries of New Tax Incentives in Egypt

Multiple key categories benefit from the new tax facilitation law in Egypt (stipulated in Laws No. 5, 6, and 7 of 2025), aiming to simplify tax procedures and encourage voluntary system enrollment, as follows for 2026:

1. Small and Medium Enterprises (Law No. 6 of 2025)

This category benefits the most, including companies and individuals whose annual turnover does not exceed 20 million EGP. Benefits include:

Comprehensive exemptions: Full exemption from stamp duty, founding contract documentation fees, profit distribution tax, and capital gains tax from selling fixed assets.
Simplified tax system: Flat or reduced percentage rates ranging from 0.4% to 1.5% based on revenue.
Administrative facilities: Exemption from preparing complex records and books, with simplified systems being sufficient.

2. Taxpayers with Tax Disputes (Law No. 5 of 2025)

Those with disputes with the Egyptian Tax Authority for periods before 2020 benefit from:

Settlement of disputes by paying 30% of the tax in estimated assessment cases.
Waiver of 100% of late payment penalties and additional tax when paying the original tax.

3. Individuals and Low-Income Earners (2026 Amendments)

Facilities include raising exemption limits:

Full exemption for those with annual income not exceeding 40,000 EGP (or 60,000 EGP for certain categories with personal exemption).
Full exemption from tax for employees with monthly income of 5,000 EGP.

4. Construction and Real Estate Sector

Construction: Elimination of 5% excise tax, with activity subject to 14% VAT rate with input deduction capability.
Real Estate Transactions: Facilitating tax payment for transactions before 2025 with full exemption from late payment penalties.

5. Compliant Taxpayers (Second Package 2026)

The Ministry of Finance announced the “Excellence Card” for compliant taxpayers, providing:

Accelerated VAT refunds within just one week.
Priority in technical support and specialized services.

Practical Steps to Benefit from Tax Facilities for 2026

To benefit from the new tax facilitation law (second package 2026), the following official procedures must be followed according to the Egyptian Tax Authority:

1. Submit Enrollment Application for Simplified System (For Projects < 20 Million EGP)

Step: Electronically submit Form 1/10 via the Egyptian Tax Authority portal
Result: 0.4% – 1.5% tax + exemption from audit for 5 years + stamp duty and profit distribution exemptions

2. Settle Old Tax Disputes

Period: Disputes before 2020
Action: Submit settlement request at 30% of original tax (estimated assessment) or pay original tax with 100% late payment penalty exemption

3. Modify Previous Returns

Allowed period: 2020-2024
Action: Submit/modify returns without late payment penalties via the electronic portal

4. Unified Basic Conditions

Mandatory registration in the E-invoicing system.
Submitting one real estate return (all properties).
Meeting deadlines: March 31 (individuals) | April 30 (companies).

Important Note: Each application is subject to official approval, and actual compliance with returns is required to obtain the “Excellence Card” and one-week VAT refund.

eDariba’s Role in Simplifying Tax Facilitation Compliance

Discover how the eDariba platform transforms your complex tax procedures into a seamless process, ensuring you fully benefit from the new facilities with minimal cost and effort.

1. Integrated Management of E-Invoices and E-Receipts

eDariba enables you to easily issue and send E-invoices and E-receipts, with the ability to modify, cancel, and save as drafts. It also offers bulk upload feature for hundreds of invoices at once, saving significant time and effort, especially at month-end when there’s pressure to upload invoices.

2. AI-Powered Product Coding

eDariba uses artificial intelligence to classify products according to global and local standards, facilitating the E-invoicing process and ensuring acceptance by the Egyptian Tax Authority.

3. Automatic Tax Return Preparation

eDariba automatically aggregates invoice and receipt data to prepare VAT returns and employment income returns in the format required by the state. This can save hours of manual work and reduce human error opportunities.

4. Multi-Company Management from One Account

An excellent feature for accounting offices and multi-branch companies, where multiple companies can be managed from a single account without needing to purchase multiple or expensive software.

5. Detailed Reports on Tax Position

eDariba provides comprehensive reports on the company’s tax position, helping make better decisions and avoid tax surprises.

6. Cost-Effective Alternative to POS Devices

eDariba can be used as a cost-effective alternative to traditional POS devices, saving on the purchase and maintenance costs of these devices.

Key Features of eDariba Platform

Ease of Use: Simple, user-friendly interface for non-tax specialists.
Cost Savings: Competitive pricing suitable for small and medium enterprises.
Security: Maximum protection for your company’s tax data.
Integration: Direct connection with the Egyptian Tax Authority system.
Continuous Updates: Keeping pace with the latest changes in tax laws and regulations.
Technical Support: 24/7 technical support to assist you at every step.

Subscribe to eDariba now and benefit from the new tax facilitation laws with ease!

Conclusion

The new tax facilitation law represents a golden opportunity for Egyptian companies, especially small and medium ones, to ease their tax burden and benefit from unprecedented incentives. With the help of eDariba, you can maximize the benefits from these facilities easily and securely.

Don’t miss this opportunity! Register on eDariba today and benefit from the new tax facilitation laws for 2025.

Frequently Asked Questions About Tax Facilitation Laws 2025 and Their Application

How do I know the appropriate tax category for my project?

This is determined based on your annual revenue recorded in your latest tax return or projected for new projects.

Do tax facilities cover all companies?

It varies according to the law and conditions. Review official texts or consult an accountant.

Are there deadlines for applying to the tax facilitation system?

Yes, there are:

Simplified system (<20 million EGP): Available now via Form 1/10 on ETA website (amnesty deadline ended August 12, 2025).
2025 returns: Individuals until March 31, 2026, companies until April 30, 2026 (or 4 months from fiscal year end).
Second package started 2026 – hurry to register to benefit from stamp duty exemptions, capital gains, and Law 6/2025.

How do I know if I’m benefiting from the new tax facilities?

Based on your tax status and type of dispute/debt. Best to review your documents with a specialist.

Official Sources and Important Links

Egyptian Tax Authority (ETA)
Ministry Finance

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