What is Simplified regime (Law 6 of 2025)?
A permanent regime for businesses with annual turnover up to EGP 20 million, which pay income tax as a fixed percentage of turnover instead of on profit.
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Current Rate (Applies from the 2025 tax period, filed in 2026.)
From 0.4% of turnover (under EGP 500,000) up to 1.5% (under EGP 20 million). The middle bands are set in the law.
Example
A business with EGP 400,000 of annual turnover in the regime pays 0.4% of turnover, EGP 1,600.
How Simplified regime (Law 6 of 2025) works in Egypt
Members get no full tax audit for five years from joining, exemptions from stamp tax, State development fees, dividend tax and capital gains tax, quarterly VAT returns and annual payroll returns. A business joins by applying on the ETA website and must use the e-invoice and e-receipt systems to stay in.
Related terms
Egyptian companies pay corporate income tax at 22.5% of taxable profit under the Income Tax Law 91 of 2005 as amended. A business in the simplified regime under Law 6 of 2025 pays a percentage of turnover instead.
An electronic tax invoice issued through the ETA e-invoice system. Mandatory for all taxpayers for all goods and services from 15 December 2022.
The electronic receipt system for sales to final consumers (B2C), linked to point-of-sale devices and made mandatory in phases by ETA decisions.
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