{"id":601048,"date":"2019-02-18T04:10:11","date_gmt":"2019-02-18T04:10:11","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2019\/02\/18\/egypt-plans-to-offer-85-tax-exemption-to-incentivize-smes-to-go-legit\/"},"modified":"2019-02-18T04:10:11","modified_gmt":"2019-02-18T04:10:11","slug":"egypt-plans-to-offer-85-tax-exemption-to-incentivize-smes-to-go-legit","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2019\/02\/18\/egypt-plans-to-offer-85-tax-exemption-to-incentivize-smes-to-go-legit\/","title":{"rendered":"Egypt plans to offer 85% tax exemption to incentivize SMEs to go legit"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-07\"><\/a> <b>EXCLUSIVE- More on tax exemptions to encourage small businesses to go legit:<\/b> The government is mulling exempting small and medium enterprises from up to 85% of their (already low) tax burden for a period of three years in an attempt to incentivize businesses in the informal economy to go legit under the proposed SMEs Act, a senior government official tells Enterprise. According to the source, the exemptions would be applied through a tier system according to each business\u2019 revenues:<\/p>\n<ul>\n<li><b>Businesses with annual revenues of up to EGP 250k <\/b>would be subject to a flat annual tax rate of EGP 2,000. These companies would enjoy an exemption from 85% of that sum for a period of three years.<\/li>\n<li><b>Companies with annual revenues of EGP 251-500k<\/b> would be subject to an annual flat tax EGP 5,000 and would be eligible for a 47% tax exemption, also for three years.<\/li>\n<li><b>Businesses with revenues of 500k to EGP 1 mn<\/b> would be subject to a flat tax of EGP 10k per annum and would be eligible for a 7.5% tax break in the first three years.<\/li>\n<\/ul>\n<p><b>Background:<\/b> Incorporating the informal economy is part of the government\u2019s new revenue strategy, which would offer incentives, including VAT discounts and access to subsidized finance to those who register their businesses and pay taxes, a source <a href=\"https:\/\/enterprise.press\/stories\/2019\/02\/07\/egypt-working-on-new-revenue-strategy-to-plug-budget-deficit\/\">told us earlier this month<\/a>. The government does not have an accurate figure of the size of the informal economy, but the source said unofficial data indicates it is at least as large as the official economy.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>EXCLUSIVE- More on tax exemptions to encourage small businesses to go legit: The government is mulling exempting small and medium enterprises from up to 85% of their (already low) tax burden for a period of three years in an attempt to incentivize businesses in the informal economy to go legit under the proposed SMEs Act, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8572],"tags":[72,276,2412,287,2380,69],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-601048","post","type-post","status-publish","format-standard","hentry","category-speed-round","tag-enterpriseam","tag-finance-ministry","tag-informal-economy","tag-smes","tag-speed-round","tag-tax","wpautop","entry"],"acf":{"mongo_id":"9a455f9c-a108-4919-9b18-b83c0374b570","is_powered_by":true,"section_story_id":"99a32410-7f8c-44b8-b27d-6e3f9978eb05","story_type":"1","photo_url":"","photo_position":"above","related_issue":[601036],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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The committee wants to\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":627798,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/06\/12\/exclusive-smes-could-get-a-massive-tax-break-if-they-join-the-formal-economy\/","url_meta":{"origin":601048,"position":1},"title":"EXCLUSIVE- SMEs could get a massive tax break if they join the formal economy","author":"enterpriseam admin","date":"12 June 2018","format":false,"excerpt":"EXCLUSIVE- SMEs could get a massive tax break if they join the formal economy: A Finance Ministry committee tasked with drafting a new SMEs Act has proposed that small businesses earning more than EGP 1 mn a year (and less than a ceiling that has yet to be determined) pay\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":602674,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/04\/03\/egypt-govt-decides-on-tax-reductions-for-smes\/","url_meta":{"origin":601048,"position":2},"title":"Egypt gov\u2019t decides on tax reductions for SMEs","author":"enterpriseam admin","date":"3 April 2019","format":false,"excerpt":"EXCLUSIVE- Preferential tax rates in the SMEs Act will give small businesses incentives to go legit, a government official with knowledge of the bill tells us. The plan would see businesses pay tax at a fixed rate over a three-year term regardless of revenue growth, according to the following bands:\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/4\/2977.png?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":594777,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/09\/08\/egyptian-smes-act-to-include-tax-and-non-tax-incentives-says-finmin\/","url_meta":{"origin":601048,"position":3},"title":"Egyptian SMEs Act to include tax and non-tax incentives, says FinMin","author":"enterpriseam admin","date":"8 September 2019","format":false,"excerpt":"LEGISLATION WATCH- The SMEs Act will include tax and non-tax incentives to support the sector and encourage small businesses to go legit, the Finance Ministry said in a statement (pdf). If passed, the incentives would include exemptions from the stamp tax as well as the fees to register contracts to\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":602572,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/04\/01\/egypt-earmarks-incentives-worth-egp-1-5-2-bn-annually-for-smes-under-new-act\/","url_meta":{"origin":601048,"position":4},"title":"Egypt earmarks incentives worth EGP 1.5-2 bn annually for SMEs under new Act","author":"enterpriseam admin","date":"1 April 2019","format":false,"excerpt":"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\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":659634,"url":"https:\/\/enterpriseam.com\/egypt\/2025\/01\/30\/govt-to-forego-egp-800-bn-in-tax-revenues-in-favor-of-broader-tax-base\/","url_meta":{"origin":601048,"position":5},"title":"Gov\u2019t to forego EGP 800 bn in tax revenues in favor of broader tax base","author":"enterpriseam admin","date":"30 January 2025","format":false,"excerpt":"The government could raise tax-free annual wages for employees by up to EGP 12k.","rel":"","context":"In &quot;Tax&quot;","block_context":{"text":"Tax","link":"https:\/\/enterpriseam.com\/egypt\/category\/tax\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2024\/4\/1258.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/601048","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=601048"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/601048\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/601036"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=601048"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=601048"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=601048"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=601048"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=601048"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}