EGYPT RESIDENT INDIVIDUAL INCOME TAX RATES
Egypt’s parliament has voted to raise the minimum income tax threshold and gave tax breaks to the first three brackets, effective 01 July 2017.
The updated annual tax brackets will be as follows:
In addition, the following measures will apply:
- Those in the income tax bracket making between 7,200 – 30,000 pounds a year and who would normally pay a 10 percent income tax will get an 80 percent tax break, meaning they pay 20 percent of taxes they would normally pay.
- The 30,000 – 45,000 pound bracket, which is taxed at 15 percent, will get a 40 percent tax break, meaning they pay 60 percent of the taxes they would normally pay.
- The 45,000 – 200,000 pound a year bracket, taxed at 20 percent, will get a 5 percent tax break, meaning they pay 95 percent of the taxes they would normally pay.
- Egyptians making more than 200,000 pounds a year who get taxed at 22.5 percent will pay their full income tax.
It is important to note that the new tax update would be considered starting July 2017 until December 2017, accordingly tax year end, and should be divided to cover the first half (January to June) using old tax brackets and the second half (July to December) using the updated tax brackets and the related discounts.
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