On 21 September 2019, Egypt’s Ministry of Finance (MOF) has issued draft budget for 2019-2020 which is scheduled to be discussed during the next parliamentary session. The draft budget includes following tax incentives:
The draft budget focuses on supportive tax based economic by giving exemption of tax for small and medium enterprises (SMEs) as a pillar of the economy. The budget sets corporate tax rates based on annual turnover:
- 5 % for annual turnover between EGP 1 million and 3 million;
- 5.1% for annual turnover between EGP 3 million and 10 million; and
- 25.1% for annual turnover over EGP 10 million.
Moreover, the budget specifies a simplified tax treatment to encourage the enterprises to join the formal sector by imposing a definitive tax:
- EGP 1000 annually for projects whose annual turnover is less than EGP 250,000;
- EGP 2500 pounds per year for projects whose annual turnover ranges from EGP 250,000 to EGP 500,000; and
- EGP 6000 pounds annually for projects whose annual turnover ranges from 500,000 to EGP 1 million.
