Egypt to Integrate Informal Sector with MSMEs Law

Egypt to Integrate Informal Sector with MSMEs Law

Egypt's Minister of Finance Mohamed Maait said that the new micro, small and medium enterprises (MSMEs) law includes many incentives to integrate the informal sector with the formal economy.

Maait noted that the temporary licenses issued for each of these projects replace any approvals or other legal procedures.

The tax due during the validity period of the temporary license was set at EGP1,000 annually for micro-informal economy projects whose annual turnover is less than EGP250,000.

It stands at EGP2,500 annually for projects whose annual turnover ranges from EGP250,000 to EGP500,000, and EGP5,000 annually for projects whose annual turnover ranges from EGP500,000 to EGP1 million, without the need to keep books.

Maait stated that Egypt is keen on stabilizing tax policies in the structural reform package.

The policies aim to control the country's budget deficit rates and public debt of the gross domestic product (GDP), maintain sustainable economic growth rate, raise the efficiency of public revenue collection and ensure its proper management.

This would eventually contribute to creating a business climate, attract more investors and expand the developmental partnerships of the private sector.

The policies will strengthen the structure of the national economy, while improving the standard of living of citizens and upgrading the services provided to them.

Maait