President El-Sisi has ordered an increase in the limit for income tax exemptions from EGP 24,000 to EGP 36,000 per year.
This means employees with annual salaries of EGP 36,000 (reportedly 22 million people) or less will be exempt from income tax.
For those with annual salaries higher than EGP 36,000/year, here’s the breakdown:
- [EGP 36,001-45,000] A 2.5% tax
- [EGP 45,001-60,000] A 10% tax
- [EGP 60,001-75,000] A 15% tax
- [EGP 75,001-215,000] A 20% tax
- [EGP 215,001-415,000] A 22.5% tax
These new amendments are expected to cost the government EGP 10 billion, but that should be partially offset by new income taxes on people with an annual salary of EGP 800,000 or more.
According to Saeed Fouad, advisor to the head of the Egyptian Tax Authority, the new income tax amendments could be effective as early as the start of April 2023.
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