Egypt simplifies taxes for small businesses below EGP 10 mln turnover

Ahram Online , Tuesday 23 Jan 2024

The Egyptian government has introduced simplified tax regulations for establishments with an annual turnover not exceeding EGP 10 million, Rasha Abdel-Aal, acting head of the Egyptian Tax Authority (ETA), said on Tuesday.

The Egyptian Tax Authority (ETA) building. Ahram
The Egyptian Tax Authority (ETA) building. Ahram


Under the new provisions, establishments with a business turnover below EGP 250,000 will be subject to an annual tax of EGP 1,000.

Likewise, businesses with a turnover between EGP 250,000 and EGP 500,000 will face a tax of EGP 2,500, while those with a turnover between EGP 500,000 and EGP 1 million will be taxed EGP 5,000.

Furthermore, establishments with a turnover ranging from EGP 1 million to less than EGP 2 million will be taxed at a rate of 0.5 percent.

Similarly, turnovers between EGP 2 million and less than EGP 3 million will incur a tax rate of 0.75 percent, and turnovers ranging between EGP 3 million and EGP 10 million will be taxed at a rate of 1 percent.

"These measures align with the directives of Mohamed Maait, finance minister, to resolve tax disputes for establishments with turnover below EGP 10 million," Abdel-Aal emphasized.

Abdel-Aal further highlighted the government's commitment to providing streamlined processes for taxpayers and expediting transaction completion through the implementation of mechanization.

In May 2023, the Egyptian parliament passed a bill introducing several amendments to the tax system, including the implementation of a simplified tax framework for small and micro-scale enterprises with annual transactions not exceeding EGP 10 million.

These initiatives form part of Egypt’s broader strategy to enhance the business climate, streamline tax procedures for startups, and bolster the private sector's role while attracting investments.

The government aims to increase the private sector's contribution to the economy from 60 percent to 90 percent between 2024 and 2030.

Additionally, the country aims to raise the percentage of private investments in total implemented investments to approximately 65 percent during the same period.

Furthermore, the government's objective includes attracting around $100 billion in direct foreign investments over this timeframe.

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