Finance Minister Mohammed Maait on Monday said the law of Micro, Small & Medium Enterprises (MSMEs) development entails several tax incentives like the simplified tax system, which is based on the volume of sales or business.
The tax, under the new law, will be a simplified one that doesn't require records, documents or purchase invoices, the minister said in a statement issued by the Ministry of Finance, adding that a simplified tax return detailing the volume of sales and business shall be submitted annually by business owners to the Egyptian Tax Authority.
The tax for EGP 250,000-worth business and sales is set for EGP 1,000, while the EGP 500,000-worth business would pay a tax estimated at EGP 2,500, the minister said.
He added that EGP 5,000 would be paid in taxes for businesses worth EGP one million, 0.5 percent tax of total size of sales and business should by paid for projects worth between EGP 1-2 million, 0.75 percent for business worth EGP 2-3 million and one percent for projects worth between EGP 3-10 million respectively.
Exemption from stamp taxes and the fees of registering companies' association deeds and the lands required for establishing micro, small and medium sized enterprises is among privileges that will be available for businessmen under the law, Maait said.
Also, customs tariffs on tools and devices required for the MSMEs business would be cut down from five percent to only two, the minister added.