# What is Simplified regime (Law 6 of 2025)?

Country: Egypt

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.

## 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.

Source: https://eta.gov.eg/ar/news/alnzam-aldryby-almbst-wfqa-llqanwn-rqm-6-lsnt-2025-frst-daymt-ldm-almnshat-alsghyrt-wthqyq

## Related terms

- [Corporate income tax (Egypt)](https://accounts-os.com/eg/glossary/corporate-tax-egypt)
- [E-invoice (ETA)](https://accounts-os.com/eg/glossary/e-invoice-egypt)
- [E-receipt (ETA)](https://accounts-os.com/eg/glossary/e-receipt-egypt)