How does the simplified tax regime under Law 6 of 2025 work?
Businesses with annual turnover up to EGP 20 million can pay income tax as a percentage of turnover, from 0.4% up to 1.5%, instead of on profit.
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AccountsOS keeps the books for Egypt businesses, tracks tax deadlines and handles invoicing, in plain English. Ask Finn about yours, no signup needed.
Detailed Explanation
## Who can join
Companies and establishments with annual turnover up to EGP 20 million. The ETA says the regime is permanent and applies from the 2025 tax period.
## The tax
A fixed percentage of turnover: 0.4% for turnover under EGP 500,000, rising to 1.5% for turnover under EGP 20 million. The middle bands are in the law; Finn points you to the text rather than quoting them from memory.
## The benefits
- No full tax audit for five years from joining
- Exemption from stamp tax, State development fees, dividend tax and capital gains tax
- VAT returns quarterly instead of monthly
- Payroll returns annually
## The conditions
Apply on the ETA website; the regime runs from the application date. Use the ETA e-invoice and e-receipt systems, or you are removed. Keep books.
## How AccountsOS helps
Finn tracks turnover against the EGP 20 million ceiling and switches your VAT reminders to quarterly. AccountsOS does not issue e-invoices or e-receipts, so you need an ETA-integrated tool for those.
Source: https://eta.gov.eg/ar/news/alnzam-aldryby-almbst-wfqa-llqanwn-rqm-6-lsnt-2025-frst-daymt-ldm-almnshat-alsghyrt-wthqyq
Real-World Examples
Small shop
A shop with EGP 400,000 turnover pays 0.4%, EGP 1,600, if it has joined.
Growing agency
An agency nearing EGP 20 million asks Finn to watch the ceiling.
Common Mistakes to Avoid
- Assuming membership without applying
- Dropping e-receipts and losing the regime
Frequently Asked Questions
Is it temporary?
No. The ETA describes it as a permanent law.
Do I still keep books?
Yes.
Practical Tips
- Keep the application confirmation
- Use both e-invoice and e-receipt systems
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