Rasha Abdel Aal, chief of the Egyptian Tax Authority (ETA), said the simplified tax regime introduced under Law No. 6 of 2025 marks a major step forward in supporting small businesses, micro-enterprises and entrepreneurs.
She said the regime reflects the Ministry of Finance’s commitment, under the leadership of Finance Minister Ahmed Kouchouk, to implementing an unprecedented package of tax facilitation measures aimed at stimulating business growth, broadening the tax base and integrating the informal economy into the formal economy through a system based on simplification, partnership and trust.
Abdel Aal explained that the regime targets businesses with annual turnover of up to EGP 20m and offers a range of exceptional incentives that significantly reduce both tax and administrative burdens, allowing business owners to focus on growing and expanding their operations within a stable, transparent and investment-friendly tax environment.
She added that the Authority has witnessed strong demand for the new regime since its launch, reflecting growing confidence among the business community in the simplified measures, particularly the transparent tax treatment and streamlined registration procedures.
The ETA chief outlined the regime’s key incentives, including a simplified proportional income tax ranging from 0.4% to 1.5%, depending on annual turnover, exemption from tax audits for five years, quarterly rather than monthly value-added tax (VAT) returns, annual payroll tax returns, and exemptions from a number of other tax obligations.
These include tax on dividend distributions, capital gains tax on profits from the sale of fixed assets, withholding tax and advance tax payment requirements, the State Resources Development Levy, and proportional stamp duty.
Abdel Aal stressed that the initiative goes beyond reducing tax burdens, as it also simplifies compliance procedures by eliminating the need for complex accounting records and lengthy tax returns, making it particularly suitable for start-ups, entrepreneurs, small businesses and micro-enterprises.
She also emphasised that benefiting from the regime is conditional on full compliance with the electronic invoicing and electronic receipt systems, describing them as a cornerstone of the Authority’s digital transformation strategy and an essential requirement for retaining the scheme’s incentives.
According to Abdel Aal, compliance with these digital systems enhances transparency, promotes tax fairness and provides businesses with a more predictable and stable operating environment.
She added that the Egyptian Tax Authority offers comprehensive technical support and awareness services to businesses wishing to join the regime through its nationwide support centres, hotline 16395, free awareness seminars, and guidance materials available on the Authority’s official website and social media platforms.
Abdel Aal called on owners of small businesses, entrepreneurs, content creators and all eligible activities covered by the law to register promptly and benefit from the incentives offered under the simplified tax regime, reaffirming the Authority’s commitment to providing full support through its partnership-based approach while fostering a more competitive, sustainable and investment-friendly business environment.
