EXCLUSIVE- The Egyptian Tax Authority is set to launch a centralized system in early 2026 specifically designed to fast-track corporate liquidation, a government source told EnterpriseAM. The move targets the market’s exit problem — where bureaucratic hurdles and open tax files prevent companies from legally closing — by resolving a massive backlog of disputes that has historically left investors trapped.

Why this matters: For years, the inability to liquidate smoothly has been a hidden tax on investment. The risk of being locked in a multi-year battle over arbitrary assessments — particularly regarding VAT — has increased the risk premium for anyone considering entering the Egyptian market. A functional exit mechanism is arguably as important as investment incentives.

How it works: Instead of dealing with local district offices, liquidation files will now be handled by a new electronic platform — currently in testing — directly under the supervision of the head of the Tax Authority. A high-level committee will oversee a transition toward instant closure once statutory requirements are met, bypassing the traditional audit lag. The system is also designed to process thousands of open files — many of which are currently flagged as tax evasion due to administrative disputes rather than criminal intent.

IN OTHER TAX NEWS– Annual rental revenues under EGP 20 mn will now be taxed at a simplified progressive rate of 0.4-1.5%, our source told us. This moves a substantial segment of the rental market away from standard progressive income tax brackets, offering landlords a significant incentive to formalize and settle their tax positions at a much lower rate.

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