# How does the simplified tax regime under Law 6 of 2025 work?

Last updated: 25 October 2026
Country: Egypt
Category: tax

**Quick answer:** 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.

## 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

## Related questions

- [What is the corporate tax rate in Egypt?](https://accounts-os.com/eg/questions/what-is-the-corporate-tax-rate-in-egypt)
- [Can I issue an ETA e-invoice from AccountsOS?](https://accounts-os.com/eg/questions/can-i-issue-an-eta-e-invoice-from-accountsos)