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Wednesday, 21 March 2018

SME taxation framework could codify lower interest rates for SMEs

SME taxation framework could codify lower interest rates for SMEs: And speaking of taxes, the SME taxation framework currently being worked on by the Finance Ministry could codify lower interest rates on SME loans, SME Development Authority Chairperson Niveen Gamea said, according to Al Mal. How that would work in practice, when interest rates are set by banks regulated by the Central Bank of Egypt, is very much an open question. The move is being presented as part of a series of incentives for SMEs to join the formal economy. Earlier this month, now-former Vice Minister of Finance Amr El Monayer suggested that the ministry would be willing to grant SMEs of a certain size partial or full tax exemptions or holidays if they meet certain conditions criteria. These could include pegging the tax breaks to how far the business has come towards registration and entering the tax system.

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