The Egyptian government has implemented simplified tax regulations for businesses with an annual turnover of up to EGP 10 million, announced Rasha Abdel-Aal, the acting head of the Egyptian Tax Authority (ETA). This initiative is in line with the directives of Mohamed Maait, the finance minister, who aims to resolve tax disputes for establishments falling within this turnover threshold.

Rasha Abdel-Aal emphasized the government's commitment to streamlining processes and expediting transactions through mechanization. It is a part of Egypt's broader strategy to improve the business climate, simplify tax procedures for startups, and boost the role of the private sector while attracting investments.

In May 2023, the Egyptian parliament passed a bill introducing amendments to the tax system, including a simplified tax framework specifically designed for small and micro-scale enterprises with annual transactions not exceeding EGP 10 million.

The government's goals include increasing the private sector's contribution to the economy from 60 percent to 90 percent by 2030. Additionally, Egypt aims to raise the percentage of private investments in total implemented investments to around 65 percent during the same period. To achieve these objectives, the government intends to attract approximately $100 billion in direct foreign investments over the coming years.

By simplifying taxes for small businesses, Egypt is fostering an environment conducive to entrepreneurship and economic growth. These measures are expected to support the development of startups and encourage greater private sector participation in the economy.

 

Source: Ahram Online