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.
On 7 May 2020, the government of Egypt issued Law Nr. 26 of 2020, which amends articles 8, 13 and 87 of the Tax Law Nr. 91 of 2005, effective from 1 July 2020. The respective amendments have been summarized below.
The amendments abolish tax discounts on the income of natural persons and increases the annual personal tax exemption amount from EGP 7,000 to EGP 9,000.
The law also modifies the progressive tax rates by creating a new bracket for annual taxable income in excess of EGP 400,000, which will be taxed at 25%.
The new rates will apply to salary income and salary equivalents, income from commercial and industrial activities, revenue from non-commercial activities, and real estate revenue.
The amended tax brackets have been summarized below:
20% penalty is applied if the final tax due exceeds the declared amounts by less than 50%. 40% penalty will be applied if the difference is more than 50%.
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.
Download PDF: Mercans Egypt Payroll Outsourcing Alert