Simplified Tax System Permanent Measure for Small Businesses – ETA
- Rasha Abdel Aal, Head of the Egyptian Tax Authority (ETA), affirmed that Law No.
- She stressed that the simplified tax system introduced under the law is permanent and not linked to any expiry date, enabling taxpayers to plan with confidence.
- Abdel Aal explained that the law adopts a graduated tax rate structure, starting from 0.4% for enterprises with annual revenues below EGP 500,000 and reaching 1.5% for those...
Rasha Abdel Aal, Head of the Egyptian Tax Authority (ETA), affirmed that Law No. 6 of 2025—covering enterprises with annual revenues not exceeding EGP 20m—marks a key step in the state’s drive to support small and micro-enterprises, encourage formalisation, and ensure their long-term sustainability.
She stressed that the simplified tax system introduced under the law is permanent and not linked to any expiry date, enabling taxpayers to plan with confidence. Its primary aim, she said, is to streamline procedures and continuously reduce tax burdens, reflecting the state’s commitment to a secure, investment-friendly business climate.
Abdel Aal explained that the law adopts a graduated tax rate structure, starting from 0.4% for enterprises with annual revenues below EGP 500,000 and reaching 1.5% for those under EGP 20m. Businesses joining the system enjoy a five-year exemption from tax audits from the date of enrolment, along with exemptions from capital gains tax on fixed asset sales, dividend tax, state resource development fees, stamp duty, and registration and notarisation fees for incorporation contracts or business-related land registration. They are also exempt from the withholding or advance income tax payment mechanism. VAT returns are to be filed quarterly instead of monthly, while payroll tax returns are submitted annually, with registration and payment procedures simplified and no requirement for complex accounting records or lengthy returns.
She noted that the ETA is committed to providing free technical and technological support to help enterprises join its electronic systems, supplying point-of-sale devices, and offering ongoing consultancy services. Abdel Aal emphasised that participation in the simplified system ensures tax stability, safeguards taxpayer rights, and encourages business expansion, adding that the authority will continue to deliver technical and awareness support to help the tax community fully benefit from these facilitation measures.