(MENAFN- Daily News Egypt) Egypt's Minister of Finance, Ahmed Kouchouk, announced a new package of tax incentives on Wednesday aimed at streamlining tax processes and boosting economic productivity. The announcement, made in a press conference, focuses on bolstering economic activity through simplified processes and incentives for businesses.

Under the new measures, small and micro enterprises, startups, freelancers, and professionals with an annual turnover of less than EGP 15m will benefit from a simplified and integrated tax system.

“The government aims to broaden the tax base to ensure the interests of both the state and investors, while also improving services for citizens,” Kouchouk said during the press conference attended by Prime Minister Mostafa Madbouly.

To encourage businesses operating in the informal economy to formalize, the government will offer a range of incentives, including allowing taxpayers to submit or amend tax returns for the years 2021 to 2023 without incurring penalties. Additional measures include simplifying tax returns, expanding sample audits to all tax centers, and implementing a risk-based approach to tax audits. Late payment penalties have been capped at the original tax amount, and the government will work to expedite the resolution of tax disputes. The threshold for international companies required to submit a transfer pricing study has been raised to 30 million Egyptian pounds.

Furthermore, a centralized settlement mechanism for investors will be introduced, and the value-added tax refund process will be simplified. The government will also adopt a tiered approach to legal penalties for non-compliance, with the severity of penalties tied to the size of the business.

To enhance the efficiency of the Egyptian Tax Authority, the government will invest in training and development programs for its employees. A new performance evaluation system will be implemented to measure employee productivity and the quality of services provided to taxpayers.

Meanwhile, Madbouly acknowledged the recent rise in inflation, attributing it to the increase in fuel and petroleum product prices.“But we are committed as a country, according to our plan with the Central Bank of Egypt, to reduce inflation to less than 10% by the end of 2025, and this is what the state and all its institutions are working to achieve,” he said.

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