SMEs will now pay the same amount of taxes for larger, more valuable projects:The Finance Ministry has approved a proposal to amend the tax brackets for SMEs to take into account inflation, without infringing on the final tax rates on projects, a government source told Enterprise. According to the source, the proposed brackets will increase by 10% over what they were previously during the last three years.

The changes:

  • First bracket: Projects that generate EGP 350k or less will pay a fixed tax of EGP 1k — a tax previously imposed on projects that generated EGP 250k or less in revenues.
  • Second bracket: Projects that generate 350k-700k will pay a fixed tax of EGP 2.5k — a tax previously imposed on projects that generate just EGP 250k-500k.

What’s next? The proposal — which was filed by the SME Committee – is now being prepared to be presented to the cabinet.

IN OTHER TAX NEWS-

Gov’t has faced no difficulties in collecting VAT in FX: The government’s motion to require sellers to settle their value-added tax dues in FX if the service or product they offer is invoiced or paid for in foreign currency has seen a stable implementation so far, Head of Tax Authority Rasha Abdel Aal said in a presser yesterday.

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