Unprecedented Opportunities to Reduce Burdens and Boost Growth
In a strategic move to support the small and medium enterprise sector, Law No. 6 of 2025, issued on February 12, 2025, introduces a series of unprecedented tax incentives and procedural facilitations for businesses with an annual turnover not exceeding 20 million EGP.
This legislation marks a significant shift in the local investment environment, empowering small business owners to grow confidently while reducing the financial and administrative burdens that have long hindered many entrepreneurs.
Who Benefits from This Law?
The law covers all individuals and entities engaged in commercial, industrial, or professional activities—whether previously registered for tax purposes or not—provided their annual turnover does not exceed 20 million EGP.
1. Extensive Tax Exemptions
- Exemption from development fees, stamp duties, notarization fees, and credit facilities fees related to incorporation contracts.
- Exemption from land registration fees linked to projects.
- Exemption of capital gains from the sale of fixed assets or equipment.
- Exemption of dividend distributions from income tax under the Income Tax Law.
2. New Simplified Tax Brackets
A fairer and more flexible tax system has been adopted, with low tax rates based on annual turnover:
Annual Turnover (EGP) | Tax Rate |
Less than 500,000 | 0.4% |
500,000 to less than 2 million | 0.5% |
2 million to less than 3 million | 0.75% |
3 million to less than 10 million | 1% |
10 million to 20 million | 1.5% |
Important Note: Even if turnover exceeds 20 million EGP by up to 20% once within five years, the business still enjoys the highest tax bracket rate.
3. Important Procedural Facilitations
Beyond financial relief, the law introduces simplified procedures to ease tax compliance:
- No requirement to apply the deduction and addition system or advance installments under Law No. 91 of 2005.
- Separate annual tax returns for each activity (commercial, industrial, professional).
- Quarterly VAT returns only.
- Tax audits conducted every five years, not annually.
- Exemption from maintaining complex accounting books, with a simplified system to be issued by the Minister of Finance.
Why Is This Law Crucial Now?
This law provides a genuine opportunity for small and medium businesses to formalize their operations without fear of tax or bureaucratic complications. It offers a stable, predictable environment that supports long-term planning and sustainable growth.
How WSMC Can Help You Benefit from This New Law
At WSMC, we provide full support to help you maximize the advantages of this law by:
- Reviewing your current tax status and assessing your eligibility.
- Preparing accurate tax returns as required.
- Organizing your accounts according to the simplified system.
- Ongoing follow-up with tax authorities on your behalf.
Contact Us Today
If you run a small or medium enterprise, don’t miss this opportunity. Reach out to us at WSMC, and let us help you reduce costs, increase profits, and move towards a more stable and successful financial future.