The Egypt SME Tax Incentive Calculator helps Egyptian small and medium-sized businesses check whether they may qualify for the simplified tax system introduced under Law No. 6 of 2025. The system applies to eligible businesses with annual turnover of up to EGP 20 million and uses simplified income-tax rates ranging from 0.4% to 1.5%, depending on annual turnover.
Use this calculator to get a quick planning estimate of your potential tax under the simplified system and compare it with your current annual income-tax amount. It also checks important eligibility factors, including turnover, tax-return compliance, electronic invoicing/e-receipt requirements, professional consulting exclusions, and whether the business has artificially split its activities to remain below the threshold.
Important: This is an estimation and planning tool, not a legal determination of eligibility. Tax treatment can depend on your specific business structure and circumstances. Check the current Egyptian Tax Authority requirements before applying.
| Annual turnover | |
| Law No. 6 simplified tax rate | |
| Estimated simplified income tax | |
| Your current/entered annual income tax | |
| Estimated potential income-tax difference |
How to Use the Egypt SME Tax Incentive Calculator
Using the calculator is simple:
1. Enter your annual business turnover
Enter your approximate annual turnover in Egyptian pounds (EGP). The main eligibility threshold under Law 6/2025 is EGP 20 million or less.
2. Enter your current annual income tax, if known
This is optional, but entering your current annual income-tax amount allows the calculator to estimate the difference between your current tax and the simplified Law 6/2025 amount.
3. Answer the eligibility questions
The calculator asks about factors that can affect eligibility, including whether you operate a professional consulting business that receives 90% or more of its turnover from only one or two clients, whether activities have been artificially split, whether tax returns are filed on time, and whether required Egyptian Tax Authority electronic systems are being used.
4. Review your estimated result
The calculator will show whether your business appears to meet the basic conditions and, where enough information is provided, estimate your simplified income tax and potential difference from your current tax.
5. Check the important conditions before applying
Law 6/2025 contains additional requirements and a special five-year rule allowing a qualifying business to exceed the EGP 20 million turnover threshold by up to 20% once while continuing under the simplified system. This should not be interpreted as permission to enter the system with turnover above EGP 20 million.
Law 6/2025 Simplified Tax Rates
| Annual Turnover | Simplified Income Tax |
|---|---|
| Less than EGP 500,000 | 0.4% |
| EGP 500,000 – less than EGP 2 million | 0.5% |
| EGP 2 million – less than EGP 3 million | 0.75% |
| EGP 3 million – less than EGP 10 million | 1.0% |
| EGP 10 million – EGP 20 million | 1.5% |
What the Calculator Does
The calculator is designed to answer two practical questions:
“Do I appear to qualify?”
and
“How much could the simplified tax system change my annual income-tax amount?”
It does not include VAT in the savings estimate, because VAT is separate from the simplified income-tax calculation.
The underlying eligibility and rate rules are based on Egyptian Tax Authority Law No. 6 of 2025, including the EGP 20 million turnover threshold, simplified rates, eligibility conditions, exclusions, and five-year provisions.
FAQ
What is Egypt Law No. 6 of 2025?
Law No. 6 of 2025 provides tax incentives and facilities for projects whose annual turnover does not exceed EGP 20 million and that apply to benefit from the law, subject to conditions and exclusions.
What is the EGP 20 million threshold?
EGP 20 million is the annual turnover ceiling for projects entering the simplified regime. The law also contains a limited one-time rule during the first five years allowing continued treatment if turnover exceeds EGP 20 million by no more than 20%.
What tax rate applies under Law 6 of 2025?
he simplified income-tax rates range from 0.4% to 1.5% of annual turnover, depending on the turnover band. The highest band is 1.5% for annual turnover from EGP 10 million through EGP 20 million.
Does every business under EGP 20 million automatically qualify?
No. Turnover is only one part of the test. The law also requires timely tax-return compliance and joining the Tax Authority’s electronic systems according to applicable phases. Certain professional consulting arrangements and artificial activity splitting are excluded.
How does the calculator estimate tax savings?
It calculates the Law 6 simplified income tax from turnover. If you enter your current annual income-tax bill, it subtracts the simplified estimate from that amount to show a potential difference. It is not a guaranteed saving and does not calculate VAT or every other tax.
Can I leave the Law 6 regime after joining?
The law says a project may not withdraw from its request to benefit before five years have passed from the day after the request is submitted. Confirm the current administrative procedure with the Egyptian Tax Authority before applying.
SOURCES
- Egyptian Tax Authority — Law No. 6 of 2025 PDF:
https://www.eta.gov.eg/sites/default/files/2025-02/law_no.6.of_.2025.pdf - Egyptian Tax Authority — Tax incentives and facilities initiative:
https://www.eta.gov.eg/en/node/870 - Egyptian Tax Authority — Simplified tax system under Law No. 6 of 2025:
https://www.eta.gov.eg/ar/news/alnzam-aldryby-almbst-wfqa-llqanwn-rqm-6-lsnt-2025-frst-daymt-ldm-almnshat-alsghyrt-wthqyq - Egyptian Tax Authority — Ministerial Decision No. 420 of 2025:
https://eta.gov.eg/ar/news/qrar-wzyr-almalyt-rqm-420-lsnt-2025 - Egyptian Tax Authority — 2026 clarification on electronic invoicing/e-receipt compliance:
https://www.eta.gov.eg/ar/news/alaltzam-bmnzwmty-alfatwrt-alalktrwnyt-walaysal-alalktrwny-shrt-asasy-llastfadt-mn-nzam