Egypt’s Ministry of Finance has published a new guide to help businesses understand the latest tax reforms on Saturday, April 26, according to a statement published on the Ministry’s page.
The document outlines who qualifies under the updated tax code, explains key responsibilities, highlights potential penalties, and details the new dispute resolution process. It also features a FAQ section and insights from prominent business leaders.
The move is part of a broader effort by Egypt to simplify tax payments for small businesses. Last week, President Abdel Fattah Al-Sisi signed three new laws aimed at streamlining tax procedures, easing the filing process, and providing clearer mechanisms for resolving disputes.
The new laws seek to replace a range of government-imposed fees with a single tax on net profits, as part of wider efforts to enhance the business environment and draw in more investment.
What You Need to Know About the Tax Reforms
Egypt’s new tax system for small businesses introduces a straightforward turnover-based approach, meaning companies will now be taxed on their total revenue instead of navigating complicated expense deductions. The goal is to make tax payments simpler, quicker, and more transparent.
If your business earns up to EGP 500,000 (USD 9,783.80) a year, you’ll pay a tax rate of 0.4 percent. For revenues between EGP 500,000 and just under EGP 1 million (USD 19,708.59), the rate rises slightly to 0.5 percent. Businesses bringing in between EGP 1 million and EGP 2 million (USD 39,417.18) annually will be taxed at 0.75 percent.
If your revenue falls between EGP 2 million and EGP 3 million (USD 59,125.77), the tax rate will be 1.0 percent. Those earning between EGP 3 million and EGP 10 million (USD 197,085.89) will face a 1.25 percent rate, while companies making between EGP 10 million and EGP 20 (USD 394,171.78) million will be taxed at 1.5 percent.
The new system aims to reduce administrative burdens for small businesses and create a fairer environment for entrepreneurs across the country.
How to Qualify for the New Tax Rates
To take advantage of the new tax rates, businesses with annual revenues of up to EGP 20 million will need to follow a few important steps. First, they must officially first create an account on the Egyptian Tax Authority’s website and file a request to opt into the new system.
It’s also essential to stay on top of filing deadlines for tax returns and to register with the government’s digital platforms, including the e-invoicing and e-receipt systems, which can be found on the Egyptian Tax Authority’s website.
After registering, businesses must use the government’s digital platforms to submit all required paperwork according to the deadlines set by the Finance Ministry.
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