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elbalad news – A Positive Step Towards In the Informal Economy
In a move aimed at strengthening the Egyptian economy, Engineer Mohamed Mendy, a board member of the Chamber of Woodworking Industry at the Federation of Egyptian Industries, stated that Law No. 5 of 2025 represents a positive development towards integrating the informal economy into the formal system. This law allows unregistered taxpayers to voluntarily register within a specified period, exempting them from tax accounting for previous periods, thereby encouraging small and emerging companies to join the formal economy without financial burdens from past periods. Additionally, the law provides mechanisms for settling existing tax disputes, enabling taxpayers who underwent estimated assessments before January 1, 2020, to apply for dispute resolution by paying only 30% of the due tax, thereby enhancing trust between taxpayers and the tax authority. These measures are expected to expand the tax base, increase government revenues, and improve the business and investment environment in Egypt, especially for small and medium-sized enterprises that constitute a significant part of the national economy.