New tax facilitation package to boost small businesses in Egypt

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Wed, 11 Sep 2024 - 02:44 GMT

BY

Wed, 11 Sep 2024 - 02:44 GMT

CAIRO – 11 September 2024: The Egyptian government has unveiled a new tax facilitation package aimed at supporting small businesses, startups, and freelancers. During a press conference today, Minister of Finance Ahmed Kouchouk emphasized the initiative's objective: to foster a more accessible and investor-friendly environment.
 
This integrated tax system is specifically designed for businesses with annual revenues not exceeding LE 15 million, benefiting small and micro enterprises, entrepreneurs, freelancers, and professionals.
 
The new framework will simplify the tax filing process, allowing businesses to submit or amend tax returns for the years 2021 to 2023 without incurring penalties.
 
To ease compliance, the government will adopt a gradual approach to legal requirements for non-tax return submissions, contingent on the annual business volume. This strategy aims to enhance flexibility and lessen administrative burdens.
 
Additionally, the exemption threshold for international companies needing to submit pricing studies will be raised to LE30 million, alleviating compliance challenges for smaller businesses involved in international trade.
 
The initiative also seeks to promote the transition of informal economy projects into the formal sector by establishing a more supportive tax environment.
 
Prime Minister Mostafa Madbouly, speaking at the conference, noted that the International Monetary Fund has confirmed the government's ability to manage inflation.
 
He also highlighted that the Standard & Poor's index for the Egyptian economy has surpassed 50 points for the first time in four years.

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