Daily News Egypt received a copy of the most important amendments that took place on a draft law for micro, small, and medium-projects, which was discussed in the projects’ committee in the parliament, according to senior sources.
The sources said that although the Finance Ministry approved amendments to some of the articles, it objected to others, such as exemption from real estate taxes.
Article 93 of the law, which sets taxes on registered projects, remains a dispute between the committee and the ministry, where the committee agreed to cut the tax in sub-article 1 and 2 to EGP 10m per year and raise the business volume in sub-article 2 and 3 to 0.5% for projects with business volumes between EGP 1m-10m annually, and 0.75% for projects wth work volumes between EGP 2m-10m annually.
The amendments granted the Micro, Small, and Medium Enterprises Development Agency (MSMEDA) five years to control the article, but the ministry disagreed.
Article 93 of the draft law states that before the amendment stipulates that the tax due on the registered projects be determined at the time of its issuance, whose work volume exceeds EGP 1m and does not exceed EGP 3m as follows: 0.75% of the total projects whose work exceeds EGP 1m and does not exceed EGP 2m and 1.25% of the works for projects whose work volume exceeds EGP 2m and does not exceed EGP 3m.
Article 94 was approved by both sides, though sub-article three was changed to EGP 5,000 from EGP 6,000.
The article sets the tax due on registered projects. This is applicable for companies whose business exceeds EGP 1m in addition two other conditions: EGP 1,000 per year for projects whose annual business is below EGP 250,000; or EGP 2,500 for projects whose annual business if over EGP 25,000 and less than EGP 500,000.
The third sub-article that was changed included EGP 6,000 for projects whose business volume exceeds EGP 500,000 and below EGP 1m.
As for article 27, the committee proposed exempting the projects included in the article from real estate tax according to the area of the project. The Minister of Finance noted that the real estate tax law is under reviewed for amendment.
The article exempts projects from stamp tax, notary fees, and other fees related to their business for up to five years.
The committee also amended article 85 that sets tax on projects in the informal economy and reduced the ratio to 1% of the annual business volume for projects whose business volume exceeds EGP 3m and below EGP 10m.
The ratio was set at 0.75% of the volume of business for projects whose work volume exceeds EGP 2m and does not exceed EGP 3m annually, and 0.5% of the volume of business for projects whose work volume exceeds EGP 1m and does not exceed EGP 2m.
Article 81 was kept as is and added a sentence to stop administrative seizures until they adjust.