Egypt Income Tax Law Amendment
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Egypt’s Income Tax Law Amended
The Egyptian Parliament has amended the Income Tax Law No 91 of 2005, as published in the official Gazette dated 20 June 2023, as follows:
- Annual Personal Exemption limit amended from EGP 9,000 to EGP 15,000
- Annual Personal Exemption limit for differently abled employees amended by 50% to EGP 22,500
- First tax bracket limit increased from EGP 15,000 to EGP 21,000.
- New tax bracket of 27.5% added for annual income greater that EGP 1,200,000.
The revised income tax brackets are provided below:
| Annual Income Tax Bracket (in EGP) | Total Annual Taxable Income | |||||
|---|---|---|---|---|---|---|
| Less than 600,000 | 600,000-700,000 | 700,000-800,000 | 800,000-900,000 | 900,000-1,200,000 | More than 1,200,000 | |
| 1-21,000 | 0.0% | 2.5% | 10.0% | 15.0% | 20.0% | 25.0% |
| 21,001-30,000 | 2.5% | 2.5% | 10.0% | 15.0% | 20.0% | 25.0% |
| 30,001-45,000 | 10.0% | 10.0% | 10.0% | 15.0% | 20.0% | 25.0% |
| 45,001-60,000 | 15.0% | 15.0% | 15.0% | 15.0% | 20.0% | 25.0% |
| 60,001-200,000 | 20.0% | 20.0% | 20.0% | 20.0% | 20.0% | 25.0% |
| 200,001-400,000 | 22.5% | 22.5% | 22.5% | 22.5% | 22.5% | 25.0% |
| 400,000-1,200,000 | 25.0% | 25.0% | 25.0% | 25.0% | 25.0% | 25.0% |
| >1,200,000 | 27.5% | 27.5% | 27.5% | 27.5% | 27.5% | 27.5% |
The amended Income tax law is effective from 1 July 2023 and therefore two declarations need to be provided by the entities with 31 December financial year-end:
- 1 January 2023 to 30 June 2023 – based the old income tax law
- 1 July 2023 to 31 December 2023 – based the new income tax law
Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change.
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Egypt Income Tax Law Amendment
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