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Tax Authority to simplify tax procedures for small businesses

Businessmen Team اقتصاد 14 August 2025 01:10 PM
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Tax Authority to simplify tax procedures for small businesses

The Egyptian Tax Authority (ETA) is working to simplify tax procedures and expand the tax base for small businesses, according to Rasha Abdel Aal, the head of the ETA.

Abdel Aal stated that a series of major amendments aim to support small businesses and achieve tax stability without imposing additional burdens on compliant taxpayers.

Speaking at a meeting with the Giza Chamber of Commerce, she said the event was part of a plan to clarify the provisions of Law No. 157 of 2025, which includes new tables for subjection and exemption, regulations for goods and services, and updated examination and registration procedures.

Osama El Shahed, head of the Giza Chamber of Commerce, affirmed the Chamber's commitment to cooperating with the ETA to provide accurate information to its members and facilitate understanding of value-added tax amendments. He announced that the chamber would organize training workshops in partnership with the ETA.

Saeed Fouad, an advisor to the ETA head, explained that Article 5 of the new law simplifies registration and inspection processes by shifting to a fully electronic system, which reduces human intervention and administrative burdens. He noted that the implementation of this article is optional, based on the taxpayer's request.

Mohsen El-Gayar, director of the Integrated Communication Center, highlighted that the small projects law offers clear advantages for businesses with an annual turnover not exceeding EGP 20 million. This aims to integrate them into the formal economy without imposing new burdens, while also facilitating registration and ensuring access to government services and technical support.

El-Gayar further explained that Article 7 mandates taxpayers to join the e-invoice and e-receipt systems. The e-invoice system applies to business-to-business (B2B) transactions, while the e-receipt system connects businesses to final consumers (B2C). These systems are designed to enhance transparency, combat tax evasion, and ensure fair competition.

The meeting also addressed Article 42 of Income Tax Law No. 91 of 2005, which concerns real estate disposal tax. This tax, set at 2.5% of the total contract value, is paid once by the seller and is required for registration at the Notary Public.

The Egyptian Tax Authority (ETA) concluded the meeting by emphasizing that the new system is intended to support all taxpayers and ease their compliance. The ETA urged taxpayers to quickly join the electronic systems to benefit from the available legal facilities and ensure tax stability.