Egypt – “Coronovirus Tax” Introduced
Mercans, a leading Egypt payroll outsourcing, PEO/GEO, employee leasing, recruitment and BPO services provider, has published Egypt payroll outsourcing alert. Subscribe to Mercans’ Egypt payroll outsourcing alerts to ensure that you are always up-to-date with the lasted regulatory changes in Egypt labor and payroll compliance requirements.
Effective from 1 August 2020, the government of Egypt has introduced an additional tax on 1%, that will be deducted from employees’ net employment income, to alleviate the economic impact of COVID-19. At the same time, all state pensions will be subject to a 0.5% contribution rate.
The additional contribution does not appy to employees and pensioners whose net income does not exceed EGP 2,000. All private and public sector employees will be subject to the additional tax, to be in effect for 12 months from 1 August 2020.
Mercans’ Egypt Payroll Outsourcing Solutions
While Mercans’ Egypt Payroll Outsourcing alerts will allow you to stay on top the latest development in Egypt’s payroll regulations, you should still get in touch with Mercans’ Egypt payroll outsourcing, compliance, PEO/GEO and BPO specialists for a free consultation on setting up fully compliant payroll and HR functions. Better yet, outsource your payroll and HR activities in Egypt to Mercans and our Egypt payroll outsourcing experts will ensure that your employees will always be paid on time and in accordance with the Egypt regulations.