Egypt supports SMEs with streamlined tax system

Egypt’s Tax Authority (ETA) head Rasha Abdel Aal said Law No. 6 of 2025, targeting businesses with annual turnover up to EGP20 million, provides permanent support for small and micro enterprises, the authority stated on Wednesday. The law encourages formal registration and long-term growth.

The system features progressive tax rates from 0.4 per cent to 1.5 per cent, five-year audit exemptions, and relief from capital gains, dividend, stamp, and registration taxes. VAT returns are quarterly, payroll tax returns are annual, and registration and payment procedures are simplified.

Abdel Aal explained that the simplified tax system under the law is permanent, not limited by a specific timeframe. It aims to streamline procedures and reduce tax burdens continuously, providing a safe and investment-friendly environment that allows taxpayers to plan long-term without concern over the expiration of incentives.

She also highlighted that the ETA offers free technical support, POS devices, and consultancy services. Abdel Aal highlighted that the system gives businesses tax stability, safeguards rights, and encourages expansion.

Attribution: Amwal Al Ghad English
Subediting: M. S. Salama