New Amendment To The Income Tax Law In Egypt.
In June 2023, the President of the Arab Republic of Egypt, Abdel Fattah Al Sisi, issued Law No. 30 of the year 2023, bringing about amendments to certain provisions of the Income Tax Law established by Law No. 91 of 2005. Additionally, the law amended specific provisions of Law No. 182/2020, which pertained to the elimination of exemption from Income Tax for proceeds from treasury bills & bonds or capital profits resulting from transactions involving such bills & bonds. Law No. 30 of 2023 officially came into effect on the 16th of June 2023. However, it’s worth noting that the modifications to the individual income tax brackets and rates, along with the allowance, are scheduled to be implemented on the 1st of July 2023.
Adjusted to accommodate a higher threshold for the 0% tax bracket.
As part of these amendments, the individual income tax brackets have been adjusted to accommodate a higher threshold for the 0% tax bracket. Additionally, a new highest bracket rate has been introduced. These changes aim to bring about a more equitable and efficient tax system, while also aligning with the country’s economic goals. The new tax rates are as follows: 0% tax rate for annual incomes up to the specified threshold. A moderate tax rate for incomes within the intermediate brackets. A higher tax rate for incomes exceeding the uppermost bracket threshold. The amendments are expected to have significant implications for individual taxpayers in Egypt.
Taxpayers are advised to review their financial situations
With the changes coming into effect, individuals may experience alterations in their tax charges based on their income levels. As a result of this governmental update, adjusted to accommodate a higher threshold for the 0% tax bracket. taxpayers are advised to review their financial situations and assess how the new tax rates may impact their earnings. Seeking guidance from tax professionals or financial advisors is advisable to ensure compliance with the updated tax regulations and to optimize their financial planning. The introduction of these modifications is part of Egypt’s ongoing efforts to enhance its fiscal policies and create a more strong and sustainable economy.
Aims to strengthen income collection while promoting economic growth
By reforming the tax structure, the government aims to strengthen income collection while promoting economic growth and development. It is essential for individuals and businesses alike to stay informed about changes in tax legislation to make well-informed decisions that align with their financial goals. As the new tax rates take effect, proper tax planning and compliance will play a vital role in navigating the evolving tax landscape in Egypt.
The new Tax rates are as follows:
|
Tax Rate |
Net income not exceeding L.E. 600,000 |
Net income more than L.E. 600,000 and not exceeding L.E. 700,000 |
Net income more than L.E. 700,000 and not exceeding L.E. 800,000 |
Net income more than L.E. 800,000 and not exceeding L.E. 900,000 |
Net income more than L.E. 900,000 and not exceeding L.E. 1,200,000 |
Net income exceeding L.E. 1,200,000 |
|
0% |
From L.E. 1 up to L.E. 21,000 |
– |
– |
– |
– |
– |
|
2.5% |
More than L.E. 21,000 up to L.E. 30,000 |
From L.E. 1 up to L.E. 30,000 |
– |
– |
– |
– |
|
10% |
More than L.E. 30,000 up to L.E. 45,000 |
More than L.E. 30,000 up to L.E. 45,000 |
From L.E. 1 up to L.E. 45,000 |
– |
– |
– |
|
15% |
More than L.E. 45,000 up to L.E. 60,000 |
More than L.E. 45,000 up to L.E. 60,000 |
More than L.E. 45,000 up to L.E. 60,000 |
From L.E. 1 up to L.E. 60,000 |
– |
– |
|
20% |
More than L.E. 60,000 up to L.E. 200,000 |
More than L.E. 60,000 up to L.E. 200,000 |
More than L.E. 60,000 up to L.E. 200,000 |
More than L.E. 60,000 up to L.E. 200,000 |
From L.E. 1 up to L.E. 200,000 |
– |
|
22.5% |
More than L.E. 200,000 up to L.E. 400,000 |
More than L.E. 200,000 up to L.E. 400,000 |
More than L.E. 200,000 up to L.E. 400,000 |
More than L.E. 200,000 up to L.E. 400,000 |
More than L.E. 200,000 up to L.E. 400,000 |
– |
|
25% |
More than L.E. 400,000 |
More than L.E. 400,000 |
More than L.E. 400,000 |
More than L.E. 400,000 |
More than L.E. 400,000 |
From L.E. 1 up to L.E. 1,200,000 |
|
27.5% |
– |
– |
– |
– |
– |
More than L.E. 1,200,000 |
If you have any questions or need further clarification on the new income tax system in Egypt, our team of Tax experts is ready to assist you. With years of experience in the Egyptian Market, Target has established itself as a leading provider of high-quality services, offering full transparency and the necessary details to meet your needs. Feel free to reach out to us, and we’ll be delighted to help you navigate the complexities of the updated tax regulations.
