Egyptian Finance Minister Ahmed Kouchouk revealed new tax facilities and incentives for startups and freelancers as part of the first phase of the country’s tax reform package. 

These measures, designed to foster trust and partnership with taxpayers, include a simplified and comprehensive tax system for startups, small businesses, and entrepreneurial activities with an annual turnover of up to EGP 15 million.

Key incentives include exemptions from capital gains tax, dividend distribution tax, stamp duties, and notarization fees for participants in this new system. 

Additionally, businesses will no longer be required to apply advance payment or withholding tax systems. Entrepreneurs will only need to file four VAT returns annually, with their first tax audit deferred for five years. Payroll tax declarations will also be streamlined into an annual reconciliation return.

Speaking at the Digital Payments, Financial Inclusion, and Digital Banking Exhibition and Conference (PAFIX), Kouchouk highlighted the ministry’s commitment to implementing these reforms. 

He noted the reintroduction of sample-based auditing across all tax centers and offices to ease procedures and build trust with taxpayers. 

Furthermore, a centralized settlement system for tax liabilities and credits will be launched by the end of this month to facilitate smoother interactions with the Egyptian Tax Authority.

During the conference, Kouchouk toured the e-Finance booth, accompanied by the company's Chairman Ibrahim Sarhan, as well as the Egyptian Tax Authority booth.

The minister underscored the importance of leveraging the vast data resources generated by Egypt’s digital financial and tax systems to stimulate economic activity and support various sectors. 

He stressed that automation significantly enhances the speed and quality of tax services, ensuring taxpayers experience tangible improvements in the tax system.

Kouchouk reiterated the ministry's priority of simplifying and unifying tax services to alleviate burdens on the tax community, attract new taxpayers, and enhance liquidity for existing partners in Egypt’s tax ecosystem.