Egypt Launches Permanent Tax Relief System for Small Businesses

Egypt's Tax Authority (ETA) has unveiled a groundbreaking permanent tax support system for small and micro enterprises, marking a significant step in the country's comprehensive tax modernization efforts.

Comprehensive Tax Relief Package

ETA head Rasha Abdel Aal announced that Law No. 6 of 2025, targeting businesses with annual turnover up to EGP20 million, introduces a progressive tax structure designed to foster economic growth and formalization. This initiative aligns with Egypt's broader economic stability measures and development goals.

Key Benefits for Small Enterprises

• Progressive tax rates ranging from 0.4% to 1.5%
• Five-year audit exemption period
• Exemptions from capital gains, dividend, stamp, and registration taxes
• Simplified quarterly VAT returns
• Annual payroll tax reporting

Strategic Economic Impact

The permanent nature of this tax system represents a crucial element in Egypt's ongoing economic reforms, providing businesses with the stability needed for long-term planning and investment decisions.

"This simplified tax system is not temporary - it's a permanent commitment to support small businesses and create an investment-friendly environment," stated Abdel Aal.

Additional Support Services

The ETA is complementing the tax relief with comprehensive support services, including:

• Free technical support and consultation
• POS device provision
• Business advisory services

This initiative demonstrates Egypt's commitment to fostering a robust small business sector while ensuring sustainable economic growth and development.