Finance Minister promises fresh start with new tax incentives, simplifications
Updated 1/27/2025 3:02:00 PM
Arab Finance: Egyptian Minister of Finance Ahmed Kouchouk expressed optimism and commitment to strengthening ties with the business community following the House of Representatives' approval of new tax incentives and facilitation laws, as per a statement.
The minister praised the lawmakers for their support, emphasizing the government’s goal of fostering trust and partnership with investors of all scales to stimulate economic growth.
Kouchouk assured businesses that the Ministry of Finance is committed to swiftly implementing the executive decisions needed to activate the new tax facilitation package.
He emphasized the establishment of a follow-up system to ensure impartial evaluation and effective execution, adding, “We will start a new page together.”
The minister detailed the approval of an integrated tax system tailored for small businesses, startups, entrepreneurs, and professionals with annual revenues not exceeding EGP 20 million.
The system offers exemptions and simplifications across various taxes, including income tax, value-added tax, stamp duty, and capital gains tax.
Businesses will benefit from proportional tax rates based on revenue, eliminating the need to calculate net profits.
Additionally, exemptions will apply to registration fees, dividend distributions, and other charges, while tax filing requirements will also be simplified.
Kouchouk highlighted mechanisms to reduce the tax burden, such as annual income tax declarations, quarterly VAT filings instead of monthly ones for eligible businesses, and a first tax inspection only after five years.
He urged unregistered taxpayers to join the system, offering amnesty for prior tax periods.
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