Rasha Abdel Aal, the head of the Egyptian Tax Authority (ETA), has confirmed the organization’s commitment to the Finance Minister’s directive to settle all tax disputes involving businesses with revenues under EGP 10m by the upcoming June.
Today, Abdel Aal announced that the ETA has put in place the necessary measures to enforce Article 3 of the Income Tax Law, as per Law No. 30 of 2023. Executive Instructions No. 95 of 2023 have been issued to facilitate the resolution of longstanding tax disputes at various adjudication levels.
Article 3 offers significant concessions for businesses engaged in disputes with the tax authority over unsettled taxes due before 16 June 2023. These disputes may be at the stage of internal, appeal, or dispute resolution committees.
Under Article 3, businesses with annual revenues not exceeding EGP 10m can access simplified tax procedures. This applies to commercial, industrial, professional, and real estate sectors, excluding payroll taxes from the revenue calculations.
The simplified tax rates under Article 3 are as follows: for annual revenues below EGP 250,000, the tax is EGP 1,000. For revenues between EGP 250,000 and EGP 500,000, the tax is EGP 2,500. For revenues between EGP 500,000 and EGP 1m, the tax is EGP 5,000. For revenues between EGP 1m and EGP 2m, the tax is 0.5% of the revenue. For revenues between EGP 2m and EGP 3m, the tax is 0.75% of the revenue. For revenues between EGP 3m and EGP 10m, the tax is 1% of the revenue.
The tax rate is applied proportionally based on the duration of the business activity. This also covers instances of a business owner’s death or when a business is discontinued or transferred
