Tax breaks bring an economic boom

An innovative tax Revolution: Integrated incentives reshaping the business environment in Egypt

At a time when the local and global economies are facing great challenges, the Egyptian tax legislator is highlighting a package of measures, benefits and tax facilities for the tax community as a strategic step to stimulate economic growth and facilitate business procedures for investors and entrepreneurs of small and medium enterprises. The tax system is no longer just a set of ratios and figures, but has become an integrated package of incentives, discounts and exemptions that make a real difference in the career of companies by reducing financial and administrative burdens. Below we review its most prominent advantages:

A tiered tax bracket system that supports the growth of enterprises.

The law determines tax rates commensurate with the size of the projects ' business, where the low percentage starts (0.4% for projects with an annual business of less than 500 thousand pounds) and gradually increases to reach 1.5% for projects with a business volume ranging from ten to twenty million pounds. If the annual turnover exceeds twenty million pounds during a five-year period, a one-time additional tax of 20% is imposed. This system ensures a light tax burden for SMEs, which gives them an opportunity to grow without burdening money and simplifies the procedures for filing a declaration and calculating tax.

Exemptions and reduced fees to encourage investment

The law provides a set of exemptions that reduce operational costs, including:

Exemption from the fee for the development of financial resources and documentation fees:

Projects are exempted from paying notarial fees and company incorporation contracts, which contributes to reducing the initial costs of establishing and running a business.

Stamp tax exemption: eases the financial burden on startups and medium-sized companies that face additional costs when documenting transactions and contracts.

Exemption from capital gains tax

Exemption from dividend tax : entrepreneurs are exempted from the tax on the disposal of fixed assets or production equipment, which encourages the modernization and expansion of production lines.

Simplification of procedures and integration of modern technology

The tax obligation is no longer a complicated paper burden; the law has adopted a developed electronic system for filing tax returns, which includes:

Independent declaration forms: specially designed to suit the nature of the commercial, industrial or professional activity, reducing errors and speeding up the process.

Electronic follow-up systems: allows financiers to monitor their transactions and procedures accurately and transparently, saving time and effort spent on administrative work.

The law attaches great importance to the provision of clear mechanisms for the settlement of tax disputes, establishing time periods for filing applications and settling disputes between financiers and the tax authority. These measures contribute to minimizing litigation and providing a stable legal environment, giving investors confidence and security in their financial transactions.

Accounting facilities that reduce the administrative burden

Along with tax facilities, the law introduces a simplified system of records and books, relieving companies of the complexities of traditional accounting, allowing them to focus on developing their business instead of being preoccupied with the fine administrative details.

Termination of old disputes without penalties

The law provides a clear mechanism for the termination of existing tax disputes for previous periods, since financiers can submit applications for the settlement of old disputes within a specified period of time. This system ensures the termination of disputes without imposing fines or additional fees, which reduces the burden on companies and helps them to easily correct their financial situation.

Filing late returns without fines

The law gives an opportunity to financiers who have not submitted their tax returns for any previous period to submit them without counting late penalties or additional taxation. This benefit is a break from the financial consequences for savers and provides them with an opportunity to engage in the new tax system in a smooth and orderly manner.

In conclusion: a promising future awaits all investors

This package represents a quantum leap in the Egyptian business environment, as it combines financial support, legal transparency and administrative facilities. It is not just a law, but an integrated strategy for turning challenges into real opportunities for growth and prosperity. If you are an entrepreneur or investor who seeks to realize their ambitions in a modern and supportive business environment, then this package of incentives is the key to developing your project and bringing it to new heights.