Govt works to stimulate start-ups to promote sustainable economic growth: minister

Egypt’s Minister of Finance Mohamed Maait said the government is working to stimulate start-ups and entrepreneurship within the framework of its keenness to encourage investment, open up new horizons for more job opportunities for the youth, and promote sustainable economic growth.

The micro, small and medium enterprises (MSMEs) development law stipulates a simplified lump-sum tax for start-ups, Maait said in a statement on Friday.

Under the law, the annual revenues determine the tax amount at micro enterprises. Annual revenues less than EGP 250,000 require a tax payment of EGP 1,000, annual revenues between EGP 250,000 and 500,000 require a tax payment of EGP 2,500, annual revenues between EGP 500,000 and 1,000,000 require a tax payment of EGP 5,000.

For SMEs, the annual revenues determine the income tax rate. Annual revenues between EGP 1 million and 2 million are subject to a tax rate of 0.5%. Annual revenues between EGP 2 million and 3 million are subject to a tax rate of 0.75%. Annual revenues between EGP 3 million and 10 million are subject to a tax rate of 1%.