The newly approved legislation specifically targets businesses with annual revenues not exceeding EGP 15 million, he said during the weekly PM news conference.
Finance Minister Ahmed Kouchouk announced the Cabinet’s approval of the new tax draft laws, aimed at stimulating growth among small businesses, simplifying tax processes, and resolving existing tax disputes.
The newly approved legislation specifically targets businesses with annual revenues not exceeding EGP 15 million, he said during the weekly PM news conference.
Kouchouk highlighted the urgent need for a cohesive tax system that supports small enterprises and startups, which are essential for youth employment and economic diversification.
The finance minister expressed confidence that these reforms will positively influence the economy, support entrepreneurship, and strengthen the partnership between the government and the business sector.
This legislative package is designed to promote growth and enhance export capacities by facilitating easier access to the tax system, with several measures already implemented via administrative decisions, while others will require legislative amendments that are expected to be completed within the current year, he added.
Kouchouk also outlined amendments for addressing existing tax disputes, encouraging taxpayers to resolve outstanding issues without penalties. Unregistered taxpayers will have the opportunity to register within a specified timeframe, allowing for a fresh start in their tax obligations.
It will exempt small businesses from stamp duties and development fees, significantly easing their financial burdens. The framework also establishes a clear and fixed rate system, where businesses will pay specific amounts based on their revenue brackets, simplifying compliance and improving predictability in tax obligations.
The draft laws also introduce quarterly value-added tax (VAT) payments, replacing the previous annual system, allowing businesses to manage their cash flow more effectively, and providing greater financial flexibility.
Kouchouk emphasized the government's commitment to restoring trust between taxpayers and the state.
To support this, declarations made by taxpayers for the previous five years will be accepted without detailed scrutiny, encouraging compliance and fostering a more positive relationship between the government and the business community.
The new laws provide straightforward solutions for disputes prior to 2020, enabling taxpayers to settle their accounts with a specific payment that results in a tax clearance certificate for the relevant year. Additionally, the legislation stipulates that penalties for late payments will not exceed the original tax amount, alleviating concerns about excessive fines that have historically burdened taxpayers.
Future initiatives are expected to include property tax incentives and customs facilitation measures.
