Minister of Finance Ahmed Kouchouk said Egypt will implement a second package of tax facilitation measures immediately after the legislation is officially promulgated. "We have delivered on every commitment we made," Kouchouk said in a Ministry statement released on Thursday July 2, 2026.
The Minister said the second package allows the solidarity contribution to be treated as a tax-deductible expense, reducing the tax burden on taxpayers. He added that value-added tax (VAT) will not be levied on transit goods or services related to them, in a move aimed at promoting transit trade and strengthening Egypt's position as a regional logistics hub.
"Companies providing non-banking financial services, regardless of their regulatory authority, as well as financial services offered by the National Postal Authority, will also be exempt from VAT," Kouchouk said. He added the package extends the suspension of VAT payments on machinery, industrial production equipment and medical devices to four years from two years to support industry and investment.
"VAT on medical devices will be reduced to 5% from 14%, while production inputs for dialysis machines, kidney filters and their components, as well as inputs used in the manufacture of prosthetic, wearable and implantable medical devices, will be exempt from VAT," the Minister noted.
Kouchouk said that the measures also shorten VAT refund periods, allowing businesses under the simplified tax regime to recover excess tax credits after three months instead of six, while other businesses will receive refunds within four months rather than six to improve liquidity.
The legislation also introduces a three-year incentive to encourage companies to list on the stock exchange and replaces the capital gains tax on securities with a stamp duty, a measure intended to reduce costs and stimulate investment and trading, according to the minister.
“Stamp duty on non-resident investors will be reduced to 0.5 per thousand from 1.25 per thousand to ensure equal treatment with resident investors,” he said. The package also provides an incentive equivalent to the Central Bank of Egypt's lending and discount rate, to be added to the acquisition cost of unlisted securities held for at least three years before disposal.
Kouchouk said that the measures prevent double taxation on dividend distributions between Egyptian parent companies and subsidiaries by allowing tax to be collected only once. They also increase the deductible interest expense on loans extended to companies participating in national infrastructure projects to lower financing costs.