{"id":669723,"date":"2025-08-07T00:00:00","date_gmt":"2025-08-07T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2025\/08\/07\/govt-moves-closer-to-simplifying-the-tax-system-for-investors\/"},"modified":"2025-08-07T00:00:00","modified_gmt":"2025-08-07T00:00:00","slug":"govt-moves-closer-to-simplifying-the-tax-system-for-investors","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2025\/08\/07\/govt-moves-closer-to-simplifying-the-tax-system-for-investors\/","title":{"rendered":"Gov\u2019t moves closer to simplifying the tax system for investors"},"content":{"rendered":"

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

The inventory was done ahead of a Finance Ministry and Investment Ministry plan to <\/strong>replace the myriad and often confusing set of fees with a single unified additional tax on net income. <\/strong>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.<\/p>\n

The proposed tax will come at a rate of 3-5%<\/strong>, which will be collected with the investor\u2019s tax filing. This is higher than the average we were previously told about in April<\/a>, which suggested the additional tax would be around 2-3%, but still well below what amount investors currently pay.<\/p>\n

Despite the reduction in fees, the government thinks the new plan could double its <\/strong>annual <\/strong>turnover ra<\/strong>te<\/strong>, as the new system will encourage more investment and help projects increase earnings, a government source told us in April.<\/p>\n

Direct and indirect taxes and fees combined make up 57% of businesses\u2019 net income<\/strong>, 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.<\/p>\n

What are these additional fees? <\/strong>They include registration fees, emergency funds for workers, various development and solidarity contributions, a stamp for martyrs\u2019 families, and assorted fees for licenses, registers, and freezones.<\/p>\n

Who will oversee the new system?<\/strong> The finance and investment ministries are set to manage the new system and handle administrative processes that include:<\/p>\n