Egypt’s Minister of Finance, Ahmed Kouchouk, has announced a new package of tax incentives focused on developing simplified processes and incentives for businesses.
The new policy will benefit small and micro enterprises, startups, freelancers, and professionals with an annual turnover of less than EGP15 million, who will be able to access an integrated tax system
“The government aims to broaden the tax base to ensure the interests of both the state and investors, while also improving services for citizens,” Kouchouk said during the press conference.
The package includes several key measures such as allowing taxpayers to submit or amend tax returns for the years 2021 to 2023 without penalties. It also simplifies tax returns, expands sample audits to all tax centres, and adopts a risk-based approach to tax audits.
Penalties for late payments are now capped at the original tax amount, and the government aims to expedite the resolution of tax disputes. The threshold for international companies required to submit a transfer pricing study has been raised to EGP30 million.
Additionally, a centralised settlement mechanism for investors will be introduced, and the value-added tax refund process will be simplified. The government will also implement a tiered approach to legal penalties for non-compliance, with penalties scaled according to the size of the business.
