The Ministry of Finance and the Egyptian Tax Authority have launched a new awareness campaign, titled “A New Chapter Begins,” during the holy month of Ramadan, according to a statement published on Sunday, 2 March.
The campaign aims to inform the public about a comprehensive package of tax exemptions and incentives recently approved by the Egyptian government and ratified by the House of Representatives.
The newly introduced tax relief measures target businesses with an annual turnover exceeding EGP 20 million (USD 395,113). These businesses will benefit from exemptions on several taxes and fees, including stamp duty, development fees, and registration and documentation fees. Capital gains tax and dividend tax will also be waived, along with the system of advance payments or deductions under the tax account.
Digitalization will be a key component of these reforms, with taxpayers, particularly those earning less than EGP 20 million (USD 395,000), being encouraged to adopt electronic invoicing and receipts.
The new measures aim to simplify taxation, with businesses subject to a proportional tax based on their annual revenue, removing the need to calculate net profits. The first tax audit for these businesses will only take place after five years. The system for value-added tax (VAT) has also been adjusted, with decisions now to be made quarterly rather than monthly.
The government has also introduced simplified record-keeping and documentation requirements to reduce administrative burdens.
Real estate transactions and unlisted shares will not be subject to tax if five years have passed since the transaction. There are also provisions for settling disputes related to real estate transactions or unlisted share dividends, with 100 percent of the delay fees being waived.
These reforms are part of Egypt’s ongoing efforts to strengthen the private sector. The private sector is a major contributor to Egypt’s economy, comprising 80 percent of the workforce and 70 percent of national production, according to data from the Central Agency for Public Mobilization and Statistics.
