| Taxable income bracket (EGP) |
Tax Rate % |
| 0 - 5,000 |
0% |
| 5,001 - 30,000 |
10% |
| 30,001 - 45,000 |
15% |
| 45,001 - 250,000 |
20% |
| 250,001 - 1,000,000 |
25% |
| Over EGP 1,000,000 per year would be subject to additional tax at 5 percent. |
|
For taxpayers (foreign expatriates) living in Egypt for less than 183 days during one calendar year, the tax rates which are mentioned above will be applied.
Lowest Individual Tax Rate is 10% and Highest Rate is 25%
| Taxable income bracket (EGP) |
Tax Rate % |
| upto 5,000 |
0% |
| 5,001 - 30,000 |
10% |
| 30,001 - 45,000 |
15% |
| 45,001 - 250,000 |
20% |
| 250,001 - 1,000,000 |
25% |
| Over EGP 1,000,000 per year would be subject to additional tax at 5 percent. |
|
For taxpayers (foreign expatriates) living in Egypt for less
than 183 days during one calendar year, the tax rates which
is mention above will be applied.
Are there any areas of income that are exempt from taxation in Egypt? If so, please provide a general definition of these areas.
The following amounts may be excluded from salary taxable
income:
personal relief of EGP7,000
employee?s share of social insurance
exemption of special increases will continue to apply
end of services payments and pensions
life insurance and medical insurance
collective benefits-in-kind
employee?s profit share.
Personal relief of EGP7,000
The basic corporate federal rate of tax in Egypt is 25%.
Tax on capital gains is calculated at the ordinary corporate profits tax rates in the same manner as ordinary business profits and is not calculated separately. Trading and capital losses derived from sales of other assets are deductible against taxable capital gains.
It is the employer?s responsibility to file quarterly tax
returns. The employer has one month after the end of each
quarter to file such returns. Additionally, the employer is
required to file annual salary tax reconciliation outlining
salaries paid to each employee, deductions, exemptions, tax
due, and the net salary paid to each employee.
31 December is the tax end date.
Compliance requirements for tax returns in Egypt
Residents and non-residents
Generally, the employer is required to compute the salary
tax and withhold it at the source on a monthly basis. They
are obliged to remit it to the relevant tax office within
the first 15 days of the following month. Employees are not
required to file tax returns unless the employer is
non-resident or has no permanent establishment in Egypt. In
such case, the employee will be required to file a tax
return at the first of January of each year. Additionally,
the employer is required to file a quarterly tax return. The
employer has one month after the end of each quarter to file
the quarterly tax returns.
At the year-end, the employer is required to prepare an
annual reconciliation of the salary tax to determine whether
there are any differences and to remit such tax differences,
if any, to the competent tax office within January of the
following year.
Penalties are imposed in the case of not complying with the
due dates mentioned earlier at 2 percent plus the discount
rate declared by the Central Bank of Egypt (discount rate is
11 percent approximately).
The tax authority audits the employer for individual income
tax purposes and not each individual separately.