Egypt.. Preparing to impose a new tax on citizens yemenat 2022
The Egyptian government seeks to increase tax revenues while taking into account the social dimension of low-income people, while at the same time not neglecting to support various investment sectors.
In this context, the Egyptian government is moving to increase a new tax on high-income earners, while at the same time easing capital gains taxes on the Egyptian Stock Exchange.
The Egyptian government plans to impose a new 27.5 percent tax bracket on individual income above 800,000 pounds a year ($32,000).
This comes according to a draft law to amend some provisions of the Income Tax Law, which was sent by the Ministry of Finance to the Council of Ministers on November 21st.
The maximum income tax currently applied in Egypt for individuals is 25% for those whose annual income exceeds EGP 400k, and 22.5% for companies with a net profit of more than EGP 200k annually.
The Egyptian government has taken a number of measures, including increasing wages, raising the tax exemption limit and applying exceptional salary bonuses, to ease the burden of the reform program, which Egypt has pursued since 2016, on low-income people.
Tax brackets on individuals according to income level annually in the new law
- 0% tax for those with incomes up to EGP 15k
- 2.5% tax for those with incomes above EGP 15k to EGP 30k
- 10% tax for those with incomes above EGP 30k to EGP 45k
- 15% tax for those with incomes more than EGP 45k to EGP 60k
- 20% tax for those with incomes more than EGP 60k to EGP 200k
- 22.5% tax for those with incomes above EGP 200k and up to EGP 400k
- 25% tax for those with incomes above EGP 400k to EGP 800k
- 27.5% tax for those with an income of more than EGP 800k