The Finance Ministry stated that the draft law for the development of the micro, small, and medium-sized enterprises (MSMEs), which will be discussed during the next parliamentary session, would include many tax and non-tax incentives, providing a lot of facilities for these projects.
The ministry added in a press statement, on Saturday, that this law aims to improve the growth structure and raise its rates, which will subsequently provide more job opportunities for youth.
“This draft law will exempt MSMEs from stamp duty, registration fees of contracts to establish companies, and fees for credit facility contracts, for a period of five years starting from the date of registration at the commercial register,” the ministry explained.
Under the draft law, the sector will be exempted from taxes and fees for the registration of land to be used for the establishment of these projects. In addition, MSMEs will be exempted from capital gains tax, if the sale proceeds are used to purchase new production assets, machinery, or equipment within a year.
The ministry revealed that the new draft law determined the tax due on a registered project whose annual turnover does not exceed EGP 1m at EGP 10,000, and EGP 2,500 for a project whose annual turnover is less than EGP 250,000. For projects whose annual turnover ranges from EGP 250,000 to EGP 500,000, the tax due will be EGP 6,000 annually.