Egypt unveils 1st batch of tax facilities package

Updated 10/10/2024 8:51:00 AM

Arab Finance: The government has unveiled the first batch of the tax facilities package aimed at boosting the country’s tax system, promoting investments, and driving economic growth, Minister of Finance Ahmed Kouchouk stated.

Kouchouk stressed that the government seeks to build a more just and transparent relationship with the tax community, pledging to implement the entire tax facilities package during this fiscal year.

The first batch covers an integrated and simplified tax system for small and medium-sized financiers with an annual turnover of up to EGP 15 million.

The package includes new incentives, exemptions, and facilities that encompass all tax bases, including income, value added, stamp, and the state resources development fees.

This is in addition to exemption from capital gains, dividends, and stamp taxes, as well as registration and documentation fees for participants in this simplified system.

They are also exempted from the advance payments or a discount system.

The initial tax examination will take place after five years, and only four value-added tax (VAT) declarations will be submitted during the year.

The annual settlement declaration will also include tax declarations for salaries and wages, and the Egyptian Tax Authority (ETA) will not require any tax liabilities for prior periods from registered individuals.

Furthermore, the central clearing system will allow financers to settle debts with the government electronically.

Kouchouk also revealed that the threshold for submitting pricing studies for transactions among related individuals will be doubled to EGP 30 million annually, while quadrupling the number of beneficiaries each year to ensure that the projects secure the needed financial liquidity.

Moreover, he announced the formation of an advisory board to unify tax fatwas, as well as the launch of a permanent unit to conduct and approve research and a complaints portalز