Egypt's Tax Authority announce facilities for owners of MSMEs

  • 04 April 2022 / News / 129 / Fares RAHAHLIA


Egypt's Tax Authority announce facilities for owners of MSMEs
CAIRO - 3 April 2022: Head of the Egyptian Tax Authority, Reda Abdel Kader, announced the presence of a number of representatives of the Medium, Small and Micro Enterprise Development Agency (MSMEDA) at the authority's e-commerce unit daily.
 
Abdel Kader pointed out that this comes within the framework of cooperation between the Ministry of Finance and the Authority with the MSMEDA to facilitate the owners of medium, small and micro enterprises to register at the tax authority.
 
He explained that the Law No. 152 of 2020 for the development of medium, small and micro enterprises includes many incentives, tax and customs exemptions, and incentive benefits that provide guarantees of success for these projects, with the aim of supporting this vital sector as one of the pillars of the national economy, in addition to helping to integrate the informal economy to the formal system.
 
Head of the Egyptian Tax Authority pointed out that the Law for the Development of Medium, Small and Micro Enterprises includes a simplified and permanent tax system for these projects; In a manner that contributes to alleviating tax burdens and facilitating procedures, to ensure their encouragement and raising their operational efficiency.
 
Head of the Regions, Centers and Ports Sector, Mahmoud Sakr, pointed out that the Law for the Development of Medium, Small and Micro Enterprises has set the final tax due on micro-enterprises registered at the time of the issuance of this law or those registered after its issuance and whose annual turnover does not exceed LE 1 million, at a rate of LE 1 thousand annually for projects whose annual turnover is less than LE 250 thousand, and LE 2,500 annually for projects with annual turnover (sales - revenues) of LE 250 thousand and less than LE 500 thousand, and LE 5000 annually for projects with annual turnovers of LE 500,000 and less than LE 1 million.
 
Sakr added that the relative tax due on projects registered at the time of the issuance of this law, or after its issuance, and whose turnover ranges from LE 1 million to LE 10 million, is determined as follows, 0.5 percent of the business volume for projects that reach Its turnover is LE 1 million and less than LE 2 million annually, 0.75 percent of the business volume for projects with a business volume of LE 2 million and less than LE 3 million annually.
 
As for the projects whose turnover is LE 3 million and does not exceed LE 10 million annually, which are registered at the time of the issuance of this law or which are registered after its issuance, the tax due on them is determined on the basis of 1 percent of the volume of business for a period of five years.

source: egypttoday

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