In the framework of the national campaign of tax awareness-raising, Dr. Mohamed Maait, sends a message to small and micro entrepreneurs .

In the framework of the national campaign of tax awareness-raising, Minister of Finance, Dr. Mohamed Maait, sends a message to small and micro entrepreneurs on the new tax incentives stipulated in the micro, small, and medium enterprises development law

• Taxes will be EGP 1000 per year … if annual turnover or sales number are approximately EGP 250,000
• Taxes are EGP 2500 per year … if annual turnover or sales stand between EGP 250000 to 500000 
• Informal economic activities may be reconciled under the law based on the principle of “Let bygones be bygones”
• No tax accounting shall be conducted to those projects for the years prior to submission of reconciliation requests

 

In the framework of the national campaign of tax awareness-raising, Minister of Finance, Dr. Mohamed Maait, sends a message to small and micro entrepreneurs on the new tax incentives stipulated in the micro, small, and medium enterprises development law. He clarified that these tax incentives will motivate those entrepreneurs to access formal economy, which in turn will develop their productivity and qualify them to be one of job opportunity providers and a milestone in promoting national economy.

The new law, as said by the minister, permits the reconciliation of the activities of micro, small, and medium enterprises which informally operate without a license. Given the importance of incentive facilitation, the new law is based on the popular proverb “let bygones be bygones”. Accordingly, under the new law, there shall be no tax accounting for informal economy enterprises that have applied for a temporary work permit for the years prior to the date of their request submission. The provisional license issued for each of these enterprises shall prevail over any other approvals or legal proceedings, added Dr. Maait.

According to a statement issued by the Ministry of Finance, the new law provides that the due tax on informal economy enterprises whose turnover or sales number do not exceed EGP 10 million during the period of provisional license, based on the tax return provided by the taxpayer, shall be 1% from turnover size for enterprises with annual turnover standing between EGP 3 million to EGP 10 million. The tax will be 0.75 % for enterprises with annual turnover between EGP 2 million and EGP 3 million, and 0.5% for enterprises with annual turnover between EGP 1 million to EGP 2 million. 

Under the new tax law, the due tax shall be EGP 1000 per year for informal economy micro enterprises with annual turnover less than EGP 250 thousands during the provisional work license, EGP 2500 per year for enterprises with annual turnover between EGP 250000 to EGP 500000, and EGP 5000 for enterprises with annual turnover between EGP 500000 to EGP 1 million, without having to hold books, noted the statement.