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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