The Egyptian Ministry of Finance announced a series of initiatives aimed at improving the tax environment for businesses; introducing a simplified tax regime for businesses with a turnover of up to EGP 15 million, covering small businesses, sole traders, freelancers, and professionals.
The government has also announced that the threshold for preparing and submitting a transfer pricing study for international companies will increase to EGP 30 million.
Currently, a local file is necessary when the value of related-party transactions exceeds EGP 8 million, whereas there is no threshold for the transfer pricing master file.
Additional incentives will be offered to encourage the integration of the informal economy; including the waiver of penalties for submitting or amending returns for the years 2021 to 2023, and late payment penalties will be limited to the original tax amount due.
