Jan 28, 2018 2 min read

Egypt New Tax Rates – Consult Mercans’ Payroll Outsourcing Team

Article Navigation

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)

FromToTax RateDiscount Rate
18,0000%0%
8,00130,00010%85%
30,00145,00015%45%
45,001200,00020%7.7%
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.

Article Navigation

Most viewed posts

View all posts

Lebanon Revises Cost of Living Allowance Limits

The government of Lebanon has increased the limit of cost of living allowance to LBP 6,400,000

Jun 1, 2023 1 min read

Client Success Story: Cochlear

360°solution with a greenfield experience with a full stack of services including HR, finance, accounting, payroll, back office setup, and reporting.

May 25, 2023 3 min read

Turkey Introduces New Social Security Law Number

Turkey has introduced the procedures and principles of the 5-point SSI premium incentive for employees who have opted for early retirement within the scope of Emeklilikte yaşa takılanlar (EYT).

May 22, 2023 1 min read

Unleashing the Power of Payroll Data Analytics

Thorough analysis of payroll data empowers businesses to extract valuable insights, enhancing customer and employee experiences and driving exceptional business outcomes.

May 18, 2023 4 min read

Kenya Changes National Social Security Fund Act

The total contributions for both employee and employer are Kshs 2,160 per month. Self-employed individuals who are members of the fund may proceed contributing the flat rate of Kshs 200 per month, which is the minimum amount of voluntary contribution

May 15, 2023 2 min read

Lebanon renews Transportation, Schooling, Cost of Living Expenses a...

Lebanese government has increased the minimum wages to LBP 9,000,000 from LBP 2,600,000 earlier and the minimum daily wage now stands at LBP 410,000.

May 10, 2023 1 min read