Raising Minimum Tax Threshold for Individuals


On 21 June 2017, Law no. 82 of 2017 was issued to increase the first bracket exempted from income tax from EGP 6,500 to 7,200. The current applicable tax brackets are as follows:

No. Tax Bracket Tax Rate
1. Up to EGP 7,200 0%
2. More than EGP 7,200 and up to EGP 30,000 10%
3. More than EGP 30, 000 and up to EGP 45,000 15%
4. More than EGP 45, 000 and up to EGP 200,000 20%
5. More than EGP 200,000 22.5%

The Law grants, for the first time, tax deduction for taxpayers who fall under the second, third and fourth brackets. The second bracket will get a deduction of 80% (i.e., will pay only 20% of their due tax), the third bracket will get 40% and the fourth will bet 5%. Taxpayers falling under the fifth bracket will pay their full income tax.

Such tax deduction should apply only once based on the highest bracket in which the taxpayer is subject.

Posted in News on Jul 09, 2017