Egypt introduces tax reforms to support startups, freelancers

CAIRO - 21 November 2024: Finance Minister Ahmed Kouchouk announced a new set of tax incentives aimed at supporting startups, small businesses, and freelancers.

Speaking at the Digital Payments, Financial Inclusion, and Digital Banking Exhibition and Conference (PAFIX), Kouchouk outlined measures to simplify tax compliance and encourage entrepreneurship as part of the first phase of Egypt’s tax reform strategy.

The reforms include a streamlined tax system for entities with annual revenues of up to EGP 15 million, offering exemptions from capital gains tax, dividend taxes, stamp duties, and notarization fees.

Participants in this system will also benefit from relaxed filing requirements, including only four annual VAT submissions and deferred tax audits for five years.

Additionally, payroll tax filings will be consolidated into a single annual reconciliation.

The minister emphasized that these steps reflect the government’s commitment to fostering a business-friendly environment.

“We have reintroduced sample-based audits across all tax offices to reduce the burden on taxpayers and enhance trust,” Kouchouk said.

He also announced the upcoming launch of a centralized settlement platform for tax liabilities and credits by the end of the month to streamline interactions with the Egyptian Tax Authority.

During the conference, Kouchouk visited the e-Finance booth alongside its Chairman, Ibrahim Sarhan, and explored initiatives showcased by the Egyptian Tax Authority.

Highlighting the role of digital transformation, Kouchouk pointed to the wealth of data generated by Egypt’s automated financial and tax systems as a key driver of economic growth.

He noted that digitalization allows the government to provide faster, more efficient tax services, enabling taxpayers to experience noticeable improvements.

He concluded by reaffirming the ministry’s focus on simplifying and unifying tax services to reduce burdens on businesses, attract new taxpayers, and boost liquidity within Egypt’s tax ecosystem. These reforms aim to create a more inclusive and supportive environment for entrepreneurs and investors alike.