Gov’t launches first phase of new tax incentives

The gov’t has launched the first phase of its new tax facilities measures in a press conference held by Prime Minister Mostafa Madbouly and Minister of Finance Ahmed Kouchouk on Wednesday. The Finance Minister stated the following tax facilities measures: i) simplified tax system for small businesses, including freelancers and professionals, with revenues that do not exceed EGP15mn (USD310k); ii) incentives to informal economic activity into the formal; iii) granting tax payers the opportunity to submit/amend their tax returns for the periods from 2021-23 without fines or penalties; iv) simplification of tax reports, with expansion of the sampling inspection system; v) imposing a limit on penalties so they do not exceed the original amount of the tax; and vi) simplifying the tax refund system. This move is the first step to fix and enhance relations between investors and the Tax Authority, which is a priority in the upcoming phase, according to Minister Kouchouk. “We have begun studying the real challenges, and our decisions reflect our seriousness in fulfilling the needs of our partners in the tax community,” Kouchouk said. “We are continuing with the tax hearing sessions,” he added. (Ahram Online)