Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Maait: 50% Tax Deduction to Encourage Investments in Various Sectors


Thu 03 Feb 2022 | 12:18 AM
Taarek Refaat

Mohamed Maait Minister of Finance said that there is a 50% tax deduction to encourage investment in some activities and regions in accordance with the Investment Law, and there are also tax and customs incentives in the Law for the Development of Medium, Small and Micro Enterprises (MSME).

The minister explained that that state is serious about stimulating the national industry and encouraging local production in all possible ways.

The tax will depend according to the volume of sales or business without the need for books, documents or purchase invoices, depending on the entrepreneur’s declaration, through a single annual simplified tax return that is prepares accurately.

If the sales or business is less than EGP 250,000, the tax will be EGP 1,000 annually, and if it is less than EGP 500,000, the tax will be EGP 2,500. For the EGP 1 million business, the tax will be EGP 5,000 annually, and if sales or businesses range from EGP 1-2 million, the tax will be 0.5% of the sales or business volume. In the case of EGP 2-3 million business volume, the tax will be 0.75%, and if it ranges from EGP 3-10 million, the tax will be 1%.

Maait concluded that the state has succeeded in reducing the total budget deficit by 50% during the past five years. "The government also aim to reduce the debt-to-GDP ratio in June 2022 to less than 90%, and less than 85% over the next three years, down from 108% in June 2017."