Egypt offers low-cost financing to SMEs joining simplified tax system

Kouchouk said the measure is part of a broader package of tax incentives aimed at encouraging compliance and supporting business growth. The package includes 33 legislative and executive measures offering exemptions, incentives, and procedural simplifications for taxpayers who join the system.

He said the financing initiative is designed to attract new entrants and support expansion among smaller businesses.

The government will also extend the tax dispute settlement law until 31 December in a move aimed at easing pressure on taxpayers. Authorities plan to introduce a “white list” and a “distinction card” to give compliant taxpayers faster access to services and additional benefits.

Further measures include restructuring value-added tax (VAT) refund departments to speed up payouts and improve liquidity, with immediate refunds targeted for businesses on the “white list”. Kouchouk said EGP 7.2 billion ($139.1 million) in VAT refunds were disbursed in the last fiscal year, a 151 percent increase.

The package also includes changes to eliminate double taxation on dividend distributions between parent and subsidiary companies, simplify the write-off of small debts, and expand premium tax service centres in New Cairo, Sheikh Zayed, and New Alamein.