Egypt expands tax relief for small businesses, startups

Egypt is offering expanded tax relief and financial incentives to small businesses, startups, and first-time taxpayers as part of efforts to support entrepreneurship and broaden the formal economy, Finance Minister Ahmed Kouchouk said on Saturday.

In remarks delivered during an open dialogue with the Federation of Small and Medium Enterprises (SMEs) and provincial investor associations, Kouchouk said the government views the SME sector as a “core partner” in the success of the country’s first phase of tax facilitation reforms.

“We are committed to implementing these reforms on the ground to achieve real, measurable improvements in tax services,” Minister Kouchouk said, adding that the state aims to grow the tax base through trust and voluntary compliance.

Under the newly launched simplified tax system, businesses earning up to 20 million Egyptian pounds annually are eligible for nine distinct tax exemptions—part of what Minister Kouchouk described as Egypt’s first fully integrated tax regime designed specifically for small-scale activities.

He also announced that the ministry is considering additional incentives and financing support for the first 50,000 taxpayers who register under the simplified system, which aims to reduce barriers to entry and draw informal businesses into the tax net.

“Small businesses, entrepreneurs, and startups are at the centre of our economic priorities,” Minister Kouchouk said. “We’ve moved away from any practices that discourage small investors from registering, and are actively supporting them through the tax authority.”

Alaa El-Sokaty, head of the SME Federation, welcomed the minister’s new approach, saying the direct engagement with business owners would help spread awareness and increase uptake of the incentives.

“This mindset is playing a critical role in stimulating investment and driving economic activity,” he said.

Attribution: Amwal Al Ghad English