Egypt’s Parliament published Law No. 6 of 2025 on 12 February 2025, introducing tax incentives for small enterprises as part of a broader tax reform.
Effective 1 March 2025, the law applies to businesses with an annual turnover of up to EGP 20 million, offering exemptions, reduced tax rates, and simplified compliance procedures.
Key benefits include exemptions from state development fees, stamp tax, capital gains tax on asset sales, and withholding tax on dividends. Businesses with turnover between EGP 500,000 and EGP 20 million benefit from reduced corporate tax rates of 0.4% to 1.5%. However, exceeding the EGP 20 million threshold may lead to partial or full revocation of tax benefits.
To qualify, businesses must submit tax returns on time and integrate with Egypt’s electronic tax systems. Simplified VAT and corporate tax filing procedures also apply.
The law excludes professional service firms with concentrated client revenue and businesses restructuring solely for tax advantages. Eligible companies must commit to the incentives for at least five years.
