Egypt introduces tax reforms to boost entrepreneurship

Egypt’s Finance Minister Ahmed Kouchouk announced on Thursday new incentives for entrepreneurs and freelancers, including tax breaks on income, value-added tax, and resource development.

Speaking at the 11th edition of the Digital Payments, Financial Inclusion (PAFIX) and Digital Banking (PAFIX) International Conference and Exhibition, Minister Kouchouk said such reforms aimed at fostering trust, partnership, and support within the tax community.

As part of the first phase of these reforms, a simplified and integrated tax system will be implemented for startups, small businesses, and freelancers with a turnover of up to 15 million Egyptian pounds. This simplified system will offer significant benefits, including exemptions from capital gains tax, dividends tax, stamp duty, and monthly fees and documentation.

Exemptions also cover discount system applications and advance payments. Only four VAT declarations are required per year, with the first tax audit scheduled after five years. Payroll tax declarations are submitted annually for settlement.

The government began implementing the initial phase of tax facilities by reintroducing the sample inspection system in all tax offices, demonstrating its confidence in its funding partners, the minister added.

Minister Kouchouk added that the central clearing system between receivables and payables will be launched by the end of the current month; aiming to facilitate dealings with the Egyptian Tax Authority (ETA).

Attribution: The Egyptian Cabinet’s statement

Subediting: Y.Yasser