Egyptian Tax Authority Leverages AI and Digitalisation to Drive Revenue Growth and Enhance Taxpayer Services
The Egyptian Tax Authority (ETA) is spearheading a significant digital transformation, integrating artificial intelligence (AI) and advanced data management to bolster tax administration efficiency and improve taxpayer engagement. These initiatives were highlighted during the 18th Scientific Conference of Sadat Academy for Administrative Sciences, where Rasha Abdel Aal, Head of the ETA, outlined the authority’s strategic advancements.
The ETA has successfully established a substantial tax database, forming a critical foundation for its evolving administrative strategies. In line with directives from Ahmed Kouchouk, Minister of Finance, to expand digital transformation and harness cutting-edge technologies, the authority is developing a comprehensive strategy to deploy AI. This aims to elevate the effectiveness of tax operations and streamline services for taxpayers.
This ongoing digital transformation, which commenced in 2018, draws upon best international practices adapted to Egypt’s unique legislative landscape. The ETA’s commitment to adopting modern technological mechanisms underscores its drive to keep pace with rapid advancements in AI tools.
Key upcoming initiatives include the launch of a mobile application designed for the automatic calculation of real estate transaction tax, utilising AI algorithms for precise valuation. Concurrently, the ETA is preparing to introduce the “Smart Tax Assistant,” a platform intended to provide legal interpretations, enhance tax awareness, and offer immediate technical support to taxpayers, thereby simplifying their interaction with digital systems.
The authority has already achieved significant digital milestones, processing approximately 2 billion electronic invoices and over 2.7 billion electronic receipts. The ETA has re-engineered its work procedures into 16 core functions with sub-functions, all automated through its Core Taxation system, adhering to international tax management models.
A pivotal element of the ETA’s digital infrastructure is its payroll calculation system, which ensures the accurate assessment of income tax for 12 million state employees by cross-referencing payroll data with national identification numbers. This system manages over 5.6 million monthly forms from subject entities, contributing to a reported 40% increase in income tax revenue in the past fiscal year due to enhanced tax audit efficiency.
Furthermore, the ETA has achieved full integration and real-time data exchange with 15 government entities, including Customs, Insurance, the Commercial Registry, the Financial Regulatory Authority, and Investment bodies. The initial phase targets linkage with 37 entities, with a long-term goal of connecting with approximately 74 official state entities.
Abdel Aal emphasised the ETA’s proactive approach to addressing challenges faced by the business community, implementing successive tax facilities to foster voluntary compliance and build a partnership based on mutual trust. These efforts have contributed to a 35% growth in tax revenue last year and an approximate 30% growth year-to-date compared to targets, without any alteration to tax rates.
The 18th Scientific Conference of Sadat Academy for Administrative Sciences was held under the patronage of Professor Dr. Abdel Aziz Konsowa, Minister of Higher Education and Scientific Research, and Professor Dr. Mohamed Saleh Hashem, President of Sadat Academy for Administrative Sciences. The session was moderated by Professor Dr. Safwat El-Nahhas, Secretary-General of the Council of Ministers and former head of the Central Agency for Organization and Administration, with the attendance of Professor Dr. Mohamed Salem and Professor Dr. Hany Mahmoud, former Ministers of Communications and Local Development.
