New Tax Rates in Egypt – Outsource Your Payroll to Ensure Compliance

Effective from July 1, 2018, Egypt is amending the Article 8 of the Income Tax Law No. 91/2005. The newly enacted Law No. 97 of 2018, issued on June 23, 2018, introduces the below revised tax brackets and rates. Get in touch with Mercans Global Payroll Outsourcing team to ensure that your payroll processes and systems are compliant with the new regulations.

Annual Income (in EGP)

From

 

 

To

 

 

Tax Rate

 

 

Discount Rate

18,0000%0%
8,00130,00010%85%
30,00145,00015%45%
45,001200,00020%7.5%
200,001+22.5%0%

 

The tax discount is applied on the highest income bracket of the taxpayer. The tax due is calculated at the rate noted for each bracket, and the discount is then applied. Accordingly, the discount rate is 85% from the tax due for taxpayers whose income is within the second bracket, 45% for taxpayers whose income is in the third bracket and 7.5% for taxpayers whose income is in the fourth bracket. For taxpayers whose income is in the fifth bracket, no discount is provided.

The total annual net income should be rounded to the nearest 10 Egyptian pounds for the income tax calculation purposes.

The revised income tax rates and discounts are applicable on all taxable income; including on, income from wages, salaries, commercial, professional, noncommercial activities or revenues from real estate, of the natural persons. The amended rates will apply to all wages and salaries earned after July 1, 2018 and net profits of the tax year ending on December 31, 2018.

About Mercans:

Mercans is a fully integrated global payroll, PEO and HR services provider. This means that as our client you get access to our cutting-edge global payroll software, local in-country payroll, compliance and HR specialists, and tax and HR advisory service entirely without having to deal with the complexities of setting up local legal entities or in-house payrolls.

If you are tired of dealing with the payroll industry dinosaurs and their outdated and inflexible technology, or with aggregators who simply pass on your data to their subcontractors and divert your calls to an off-shore call center and never seem to have the local knowledge, Mercans is your ideal partner.

Mercans accepts your payroll data, configures calculation rules and generates reports based on your needs and requirements. You will never again have to go through lengthy implementation processes only to find out that you need to change your own side to cope with the limitations of the payroll provider. Our software platform has preconfigured API integration capability with all the major global HRMS platforms, including SuccessFactors, Workday, Oracle HCM, MS Dynamics, and so on.

Our in-country payroll and PEO specialists support you locally when and where you need them. We provide you with practical guidance regarding payroll compliance issues as well as immigration and HR. Never again will you be left hanging, waiting for an answer from a call center. We take care of your business when and where you need it.

Our single contract and software platform approach guarantees that you have the full overview of all of your local payrolls and related costs. You can view and analyze the payroll data in real time and without building expensive reports or data interfaces.

All of Mercans’ systems and processes are GDPR compliant and ISO 9001, 20000 and 27001 certified.