Rasha Abdel Aal, head of the Egyptian Tax Authority, announced that the number of entrepreneurs and small and micro enterprise owners joining the simplified tax system since its launch in February 2025 has exceeded expectations, particularly in the final quarter of last year. She said the strong uptake reflects rising confidence in the authority's reform-oriented approach. Abdel Aal shared these remarks on the sidelines of the RiseUp Summit.
Rasha Abdel Aal, head of the Egyptian Tax Authority (ETA), stated that registration procedures for the simplified tax system have been significantly streamlined in line with principles of partnership and facilitation. The objective is to support content creators, start-ups, and entrepreneurs in integrating into the formal economy and expanding their operations.
The ETA's participation in specialized events like the RiseUp Summit follows directives from the Minister of Finance to deepen dialogue with the business community and improve the investment climate. Abdel Aal emphasized the Ministry of Finance and ETA's commitment to exchanging expertise and building sustainable partnerships with entrepreneurs, small and micro business owners, e-commerce operators, and emerging business leaders.
Digital transformation is a cornerstone of tax policy reform, which the authority has been addressing systematically since 2018. Key milestones include the implementation of electronic invoicing and receipt systems, enhancing transparency and improving the accuracy of tax base identification. The authority has shifted from traditional audit methods to data-driven, intelligent analytical systems, promoting fairness and fostering more stable relations with taxpayers.
The authority launched the first package of 20 tax facilitation measures, most notably Law No. 6 of 2025, which introduced a simplified tax regime for entrepreneurs and owners of small and micro enterprises with annual turnover not exceeding EGP 20 million. Under the law, eligible taxpayers are exempt from reassessment for previous years if not previously registered, with the registration date treated as a new starting point.
The simplified system applies a proportional income tax based on turnover, ranging from 0.4% for businesses with annual turnover below EGP 500,000 to 1.5% for those up to EGP 20 million. Participants benefit from a five-year exemption from tax audits, quarterly VAT returns instead of monthly, annual payroll tax returns, and exemptions from dividend tax, capital gains tax on machinery, equipment and fixed assets, as well as from the withholding and advance payment system, state development fee, and proportional stamp duty. Registration and payment procedures have been simplified, eliminating the need for complex accounting records or lengthy tax filings.
The ETA's E-Commerce Unit participated in the summit through a dedicated stand offering services, technical support, and on-site responses to inquiries. Tax return submission, electronic payment, and e-invoicing services are available through the authority's online portal, alongside detailed guidance manuals for e-commerce businesses, content creators, and digital platforms.
Concluding her remarks, Abdel Aal described Egypt as being at a genuine turning point, stressing that taxation remains a primary source of state revenue. She affirmed that the authority is fully prepared to provide necessary support to taxpayers, reinforcing principles of partnership, transparency, and mutual trust.