{"id":659634,"date":"2025-01-30T00:00:00","date_gmt":"2025-01-30T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2025\/01\/30\/govt-to-forego-egp-800-bn-in-tax-revenues-in-favor-of-broader-tax-base\/"},"modified":"2025-01-30T00:00:00","modified_gmt":"2025-01-30T00:00:00","slug":"govt-to-forego-egp-800-bn-in-tax-revenues-in-favor-of-broader-tax-base","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2025\/01\/30\/govt-to-forego-egp-800-bn-in-tax-revenues-in-favor-of-broader-tax-base\/","title":{"rendered":"Gov\u2019t to forego EGP 800 bn in tax revenues in favor of broader tax base"},"content":{"rendered":"

New SME tax system aims for br<\/strong>oader tax base: <\/strong>The recently approved SME tax system could save taxpayers \u2014 and set the government back \u2014 some EGP 800 bn in foregone tax revenues, with 85% of taxpayers registered with the Egyptian Tax Authority set to benefit from the amended system, a government source told EnterpriseAM. The move is designed to bring more businesses from the informal economy into the official tax base \u2014 which will eventually lead to more tax revenues, the source explained.<\/p>\n

(Tap or click the headline above to read this story with all of the links <\/strong>to our background as well as external sources.)<\/p>\n

ICYMI:<\/strong> MPs on Monday gave their final approval to a draft law<\/a> that replaces lump-sum tax on SME businesses with a variable tax rate ranging from 0.4-1.5% that covers income tax, VAT, duty tax, and others. The stated purpose of the draft bill is to support the SME sector, while also expanding the tax base and integrating the informal economy.<\/p>\n

What are the new tax rates?<\/strong> Instead of a flat EGP 1-5k lump-sum tax based on businesses\u2019 annual revenues, businesses will pay the following tax rates:<\/p>\n