Egypt earmarks incentives worth EGP 1.5-2 bn annually for SMEs under new Act

LEGISLATION WATCH- The SMEs Act includes tax and non-tax incentives worth EGP 1.5-2 bn annually to support entrepreneurship and encourage SMEs to go legit, said Hisham Ragab, an advisor to the trade and industry minister. In measures recently approved by cabinet for introduction in the House, businesses with turnover of up to EGP 10 mn will be eligible for a preferential tax rate of 1.25% for a period of time after registering, while those with annual revenues of under EGP 1 mn will be taxed EGP 2-6k. Other measures likely to be included in the package include regulatory changes designed to make it easier to for small businesses to get credit.