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​Statement issued by Ministry of Finance:

Dr. Mohamed Maait, Minister of Finance, confirmed that the government is working to stimulate emerging companies and entrepreneurship as part of its keenness to encourage investment and open new horizons to provide more job opportunities for young people and promote sustainable economic growth. He pointed out that Small, Medium and Micro Enterprise Development Law stipulated a simplified lump sum tax for Startups, which is: i) EGP 1000 annually for projects whose annual turnover is less than EGP 250,000; ii) EGP 2,500 annually for projects whose annual turnover ranges from EGP 250,000 to EGP 500,000; iii) EGP 5000 annually for projects whose annual turnover ranges from EGP 500,000 to EGP 1000000; iv) 0.5% of the turnover of projects from one million to two million EGP; v) 0.75% for turnover ranging from two million to three million EGP; and vi) 1% for turnover from three million to 10 million EGP.

The Minister said that establishments and companies whose annual turnover does not exceed ten million pounds can benefit from Small, Medium and Micro Enterprise Development Law, which includes further simplification of the procedures of tax assessment and collection on Startups and reduction of the volume of tax disputes.
The Minister explained that he passed his directives to the Egyptian Tax Authority to promptly take procedures to end the tax inspection for urgent cases such as liquidation, cessation, and departure within only 90 days in accordance with the provisions of Law No. 91 of 2005, so that none of the founders of these startups, who is forced to close his/her company and start another company, will be surprised that his/her closed company still has its tax file pending and has not specified its tax status. The Minister stressed the keenness to speed up the procedures of tax inspection and collection for startups and entrepreneurial companies, so that it contributes to encouraging the youth to have strong investment presence in the business market in various fields. Such comes in line with the objectives of the standing unit of the Council of Ministers to support startups and entrepreneurial companies.
“We are keen to provide all means of support to startups, which helps increase their numbers and enhance their areas of work, and to increase the participation of the private sector, snice it is the locomotive of growth and the main engine of economic activity, especially in light of the frequent global changes following the war in Europe” the Minister added. He pointed out that startups are usually in the stage of growth and search for markets, and they start with low capital and high costs during the establishment phase, and face many challenges, which makes them in need for support.

GAFI CEO Mr. Hossam Heiba said that the new unit for entrepreneurial companies and startups that was established under the auspices of the Council of Ministers aims to work on the growth of startups, and has the representation of all parties concerned with the entrepreneurship environment in Egypt. The unit works on removing any challenges facing startups and entrepreneurs, which encourages them to contribute to the economic development process. He pointed out that the technical secretariat of the unit has been formed, which meets periodically and receives complaints from startups and entrepreneurs and submits them to the competent authorities in order to promptly resolve them, which paves the way for startups to operate in a stimulating environment free of challenges; including the lengthy procedures for startups to exit the market.