The General Authority for Investment and Freezones has finalized its inventory of all the 2,224 different fees faced by investors, a government source told EnterpriseAM. All 67 relevant government entities were contacted and shared the fees and stamps they collect, according to our source.

The inventory was done ahead of a Finance Ministry and Investment Ministry plan to replace the myriad and often confusing set of fees with a single unified additional tax on net income. Following three months of study, this move sets the stage for Finance Minister Ahmed Kouchouk and Investment Minister Hassan El Khatib to meet and finalize a decision on the new consolidated tax system, the source said.

The proposed tax will come at a rate of 3-5%, which will be collected with the investor’s tax filing. This is higher than the average we were previously told about in April, which suggested the additional tax would be around 2-3%, but still well below what amount investors currently pay.

Despite the reduction in fees, the government thinks the new plan could double its annual turnover rate, as the new system will encourage more investment and help projects increase earnings, a government source told us in April.

Direct and indirect taxes and fees combined make up 57% of businesses’ net income, with fees alone representing 20% of the total, according to our source. Investors currently face a 22.5% corporate income tax, a 14% VAT, and an additional 20% in various fees from different government entities, the source noted.

What are these additional fees? They include registration fees, emergency funds for workers, various development and solidarity contributions, a stamp for martyrs’ families, and assorted fees for licenses, registers, and freezones.

Who will oversee the new system? The finance and investment ministries are set to manage the new system and handle administrative processes that include:

  • The issuance of commercial and industrial registers;
  • Environmental certificates and civil defence approval;
  • Importer licences and registration in the chambers of commerce;
  • Traffic licenses for industrial, commercial, and tourism establishments;
  • The Labor Ministry’s emergency fund and similar services.

REMEMBER- The government is looking to secure an additional EGP 195.2 bn in tax revenues — equivalent to 0.98% of GDP — in FY 2025-2026 through a bundle of tax reforms, the IMF said last month.

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