Egypt has introduced a new permanent tax regime aimed at supporting small and micro enterprises and encouraging their integration into the formal economy. The move is part of a broader strategy to stimulate entrepreneurship and investment.
Rasha Abdel Aal, Chair of the Egyptian Tax Authority, announced that Law No. 6 of 2025 offers simplified, low-rate taxation for businesses with annual revenues not exceeding EGP 20 million.
Key Features of the New Tax Law:
- Low, fixed tax rates ranging from 0.4% to 1.5% based on revenue brackets.
- 5-year exemption from tax audits for qualifying businesses.
- Exemptions from capital gains tax, dividend tax, and several government fees.
- Streamlined procedures for tax registration and payments.
- No obligation to maintain complex accounting records.
- Quarterly VAT filings and annual payroll tax filings only.
- Elimination of advance payments and the tax withholding system.
In addition, the tax authority is offering free technical support, electronic point-of-sale (POS) systems, and advisory services to help entrepreneurs achieve financial stability and plan for growth.
Abdel Aal emphasized that the law is designed to reduce red tape and lower the entry barrier for businesses to operate formally, thereby driving sustainable economic growth.
