{"id":710922,"date":"2026-06-17T00:00:00","date_gmt":"2026-06-17T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/?p=710922"},"modified":"2026-06-17T02:38:17","modified_gmt":"2026-06-17T02:38:17","slug":"finmin-keeps-the-solidarity-tax-shift-on-the-top-line","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2026\/06\/17\/finmin-keeps-the-solidarity-tax-shift-on-the-top-line\/","title":{"rendered":"FinMin keeps the solidarity tax shift on the top line"},"content":{"rendered":"

Good morning, ladies and gents and happy new hijri year!<\/strong> Before we head to the long weekend \u2014 and before CIB and TMG contracts hit the EGX on Sunday \u2014 we take a deep dive into EGX30 futures. Three months after their debut, they are barely registering a pulse, averaging just a handful of trades a day.<\/p>\n

MEANWHILE- <\/strong>We finally see the hit of the regional war in April\u2019s auto market sales, which dropped to 15.3k units after buyers front-loaded their purchases earlier in the year.<\/p>\n

Also on our radar:<\/strong> Osool Securities Brokerage plans to up its current sub-5% position in real estate heavyweight TMG, banking on the developer\u2019s soaring hospitality revenues and its Saudi expansion.<\/p>\n

A quick programming note before we dive in: <\/strong>EnterpriseAM Egypt won\u2019t be landing in your inbox tomorrow \u2014 we\u2019re taking the day off in observance of the Islamic New Year. Enjoy the long weekend, and we will be back in your inboxes bright and early on Sunday.<\/p>\n

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ARE YOU MORE OF A LISTENER?<\/a><\/strong>Morning Drive is a 10-minute summary<\/a> of today\u2019s issue crafted for you to enjoy with your morning coffee, while getting the kids ready for school, or driving through the morning rush. And if you like it, tell your friends to tell their friends. They can find us on <\/strong>Apple<\/a><\/strong>, <\/strong>Spotify<\/a><\/strong>, or wherever they get their podcasts.<\/strong><\/p>\n

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Slightly softer solidarity contribution<\/p>\n

<\/a> The government is delaying its promised overhaul of the solidarity contribution companies pay to help fund the Universal Health Ins. s<\/strong>ystem<\/strong>, government sources tell EnterpriseAM. Finance Minister Ahmed Kouchouk has asked the House to defer plans to shift the levy\u2019s calculation from gross revenues to net income, citing the heavy human development spending in the FY 2026\/27 budget. Kouchouk argued that the state simply cannot afford a funding gap right now as the second phase of the healthcare system prepares to launch in densely populated governorates.<\/p>\n

Rejected compromise:<\/strong> The Investment Ministry pitched a middle ground \u2014 keeping the 0.25% rate but applying it to net income instead of total revenues to ease the burden on loss-making firms, the sources say. The Finance Ministry shot it down, arguing it would blow a massive hole in a healthcare system that relies on it for the majority of its revenues.<\/p>\n

A softer fix for a multi-year saga:<\/strong> The corporate push<\/a> to move the levy to the bottom line has been stuck in stop-start mode, with the government initially postponing amendments back in 2019<\/a>, then reviving plans last year<\/a> to change how the contribution is calculated. Instead of a full pivot, the contribution will be folded into the upcoming third tax relief package in a softer form, according to Kouchouk. Companies will still calculate the 0.25% levy on top-line revenues, but they will finally be allowed to treat it as a tax-deductible expense to ease liquidity pressures \u2014 confirming what former Deputy Finance Minister Sherif El Kilany told us<\/a> late last year.<\/p>\n

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Real estate taxes? There\u2019s an app for that<\/p>\n

<\/a> T<\/strong>he Finance Ministry launched Egypt\u2019s first real estate tax mobile app<\/strong>, along with sweeteners to lure taxpayers to pay their real estate taxes<\/a>, including quadrupling the exemption ceiling for primary residences, offering amnesty on late penalties, and extending olive branches to owners of unregistered properties, according to a statement<\/a>.<\/p>\n

Here\u2019s what we can expect from the app: <\/strong><\/p>\n