The Egyptian Parliament in the New Administrative Capital
The first bill extends a 2016 tax dispute settlement law through 31 December 2026, enabling specialized committees to continue reviewing pending cases and accepting new applications from taxpayers and businesses.
According to the parliament's Planning and Budget Committee, the extension is part of the state's efforts to modernize the tax system, strike a balance between protecting public revenues and safeguarding taxpayers' rights, and improve the investment climate.
The committee said the tax dispute mechanism has proven effective since its introduction, helping resolve several disputes between the Egyptian Tax Authority and taxpayers, accelerating the collection of state dues and reducing litigation burdens.
In a separate vote, lawmakers also approved a bill requiring state-owned and state-controlled companies to allocate part of their distributable net profits to the public treasury in a move aimed at strengthening government revenues amid current economic challenges.
Under the new law, companies wholly owned by the state or public legal entities must transfer 5 percent of their distributable net profits to the state treasury within four months of the end of the financial year, after covering carried-forward losses and before setting aside reserves.
Companies in which the state or public legal entities own more than 50 percent of the capital will be required to transfer an amount equivalent to 4 percent of distributable net profits. The amount will be deducted from the state's share of profits and may not exceed its entitlement.
The legislation was amended during parliamentary discussions to raise the ownership threshold for partially state-owned companies from 30 percent to more than 50 percent, reflecting what lawmakers described as the criterion of effective control over a company. The amendment aims to reassure private-sector investors that their rights and ownership stakes will not be affected.
The law also grants the cabinet authority to exempt certain companies temporarily from its provisions in cases where economic or social considerations serving the public interest require such an exemption. Any exemption must be issued by a cabinet decision upon the recommendation of the finance minister.
The Planning and Budget Committee said the law seeks to balance the state's need to increase revenues and maximize returns from public assets with the need to preserve the operational and expansion capabilities of state-owned companies and enhance their competitiveness.
Both laws will enter into force on the day following their publication in the Official Gazette.
Short link: