Market Intelligence

The Egyptian tax system has undergone a significant change following the enactment of Law No. 151 of 2026, amending certain provisions of the Income Tax Law No. 91 of 2005. Article 6 of the new law repealed Article 18 of the Income Tax Law, which had provided the legislative basis for issuing specific rules and principles for the tax assessment of small enterprises. In practice, these rules had, over the years, been associated with presumptive assessments and standardized net profit margins for certain activities.

Law No. 151 of 2026 introduced significant amendments to the Egyptian Income Tax Law No. 91 of 2005 as part of the second package of tax facilitation measures. The amendments focus on improving the tax treatment of investments, supporting the Egyptian capital market, encouraging long-term investment, facilitating infrastructure financing and reducing certain instances of tax duplication. The changes also introduce specific incentives for parent and holding companies and revise the treatment of listed and unlisted securities.

Egypt’s 2026 tax reforms bring major changes to income tax, VAT, tax administration, dispute settlement, and State-owned companies.The reforms are intended to simplify tax procedures, support investment and productive activities, improve business liquidity and strengthen the relationship between taxpayers and the tax administration. The Ministry of Finance has described the second tax-facilitation package as a set of measures aimed at reducing tax burdens, encouraging investment and production, and simplifying tax procedures.

Tax laws in Egypt rest mainly on Income Tax Law No. 91 of 2005, which governs corporate and personal income tax, alongside separate value-added tax, stamp duty, and social insurance regimes. Companies registered through GAFI must obtain a tax card, file annually for corporate tax and monthly for VAT and payroll, and apply withholding on cross-border payments.

As part of the development of the legislative framework governing economic activities in the State of Qatar, particularly in the field of taxation, the Council of Ministers Resolution No. 3 of 2026 Concerning the Tax Incentive Related to Capital Gains Arising from Corporate Restructuring (“Resolution”) was issued with the aim of achieving greater tax neutrality in asset transfers carried out in the context of corporate restructuring.

Businesses operating in Saudi Arabia may need to manage several tax obligations, including Corporate Income Tax, Zakat, VAT and Withholding Tax. Which obligations apply depends on factors such as ownership structure, the nature of the business and the transactions it undertakes, making accurate accounting and ongoing ZATCA compliance essential.