(MENAFN- Daily News Egypt) Egypt's Ministry of Finance and the Micro, Small, and Medium Enterprise Development Agency (MSMEDA) are collaborating to simplify the tax system for businesses with annual turnovers not exceeding EGP 15 million, officials announced on Tuesday.
Sherif El-Kilany, Deputy Minister of Finance for Tax Policies, met with MSMEDA representatives at the Ministry of Finance headquarters in the New Administrative Capital to discuss the tax facilities package aimed at small businesses. The meeting followed directives from the Minister of Finance to engage in community dialogue with various organisations regarding tax facilitation measures.
El-Kilany emphasised the importance of aligning with MSMEDA on a comprehensive tax system for small businesses, aimed at encouraging and supporting these enterprises through simplified tax treatments. The goal is to stimulate economic growth for small businesses, which are crucial to the country's economic landscape.
“We are committed to working with MSMEDA to ensure that the tax system is conducive to the growth and development of small businesses,” El-Kilany said.
The meeting was attended by Rami Youssef, Assistant Minister of Finance for Tax Policies and Development, Rasha Abdel Aal, Head of the Egyptian Tax Authority, Mohamed Abdel Malek, Deputy Head of MSMEDA, and Hossam Abdel Aziz, Legal Advisor to MSMEDA.
A joint committee was established between the Ministry of Finance, the Egyptian Tax Authority, and MSMEDA to unify procedures and concepts, working towards a consensus-based legal framework that simplifies the tax system for small enterprises.
Rami Youssef highlighted three key short-term financial policy priorities: simplifying the tax system, building partnerships with taxpayers, and reducing administrative costs. He stressed the importance of creating a highly simplified tax system to support startups, freelancers, and small businesses, particularly in entrepreneurship and professional services.
Rasha Abdel Aal noted that the new tax system will cover all tax aspects, including income tax, VAT, stamp duty, development fees, profit distributions, and payroll taxes, providing multiple exemptions and simplified reporting requirements.
Mohamed Abdel Malek expressed enthusiasm for the collaborative efforts, underscoring the need for continued coordination to facilitate the growth of small businesses, which play a vital role in both the industrial and broader economic sectors in Egypt.
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