In an effort to support taxpayers and foster a cooperative relationship, Rasha Abdel Aal, the head of the Egyptian Tax Authority, has announced a comprehensive initiative to resolve all tax disputes for businesses with revenues not exceeding EGP 10m by the upcoming June. This initiative aligns with the Ministry of Finance’s commitment to ease the process for taxpayers and is in accordance with Article 3 of Law No. 30 of 2023, aimed at settling pending tax disputes before 16 June 2023.
In a recent statement, Abdel Aal detailed the simplified tax structure under Article 3 of Law No. 30 of 2023:
- For businesses with annual revenues less than EGP 250,000, the tax due is EGP 1,000.
- Revenues between EGP 250,000 and EGP 500,000 incur a tax of EGP 2,500.
- Revenues between EGP 500,000 and EGP 1m are taxed EGP 5,000.
For larger business volumes, the tax rates are as follows:
- From EGP 1m to less than EGP 2m: 0.5% of the revenue.
- From EGP 2m to less than EGP 3m: 0.75% of the revenue.
- From EGP 3m to EGP 10m: 1% of the revenue.
Abdel Aal emphasized that various committees, including missions, internal, appeals, dispute resolution, and those combating tax evasion, will automatically enforce Article 3 provisions. While the application of this article is not contingent upon taxpayer requests, taxpayers retain the right to seek accountability under Law No. 91 of 2005 and its subsequent amendments.
She also clarified that this article’s application spans all tax categories, except for real estate transaction taxes. The annual revenue for tax calculation purposes should exclude payroll taxes and similar levies.
