Egypt to impose 27.5% new income tax bracket

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The Egyptian government intends to impose a new tax bracket of 27.5% on individuals’ annual income exceeding EGP 800,000 ($32,000) in accordance with a draft law amending some provisions of the income tax law, Asharq Business reported o December 14th, citing a document.

The current applicable income tax limits in Egypt stand at 25% for individuals on annual income surpassing EGP 400,000, and 22.5% for companies generating net profits of over EGP 200,000 a year.

According to the document, the draft law amending provisions of the income tax law includes waiving any unpaid tax on capital gains due from selling listed shares on the Egyptian Exchange (EGX) during the period from January 2022 until the date of initiating the law amendments.

The government seeks to begin amending the law as of January 2023 and is subject to the approvals of the parliament and the president before the publication in the official gazette.

The new law also includes the deduction of 50% of achieved capital gains from the initial public offerings (IPOs) for individuals for two years from the commencement date of amending the income tax law.

Egypt plans to increase its tax proceeds in fiscal year (FY) 2022/2023 by 18.8% to EGP 1.1 trillion, as well as raise its revenues from income tax by 18.6% to EGP 107.3 billion in the same fiscal year.