Amendment introduced to tax brackets

On 30 October 2023, the Egyptian Cabinet passed Law No. 175 of 2023, introducing significant changes to the Egyptian Income Tax Law No. 91 of 2005.

These new tax brackets have been in effect since the start of November 2023, affecting a broad spectrum of individuals, including employees and those involved in various sectors such as commerce, industry, real estate, intellectual activities, and non-commercial endeavors.

This amendment underscores the pivotal role of income tax in achieving social justice through progressive taxation, with the aim of expanding the number of individuals benefiting from tax exemptions.Key tax bracket adjustmentsAs per the revised law, the threshold for the tax-exempt bracket has been raised to an annual income of EGP 30,000. Consequently, the newly adjusted brackets are as follows:

Conclusion

This measure reflects the Egyptian government's commitment to easing the tax burden on low-income individuals, fostering a more equitable distribution of taxes based on income, and adapting to evolving economic and social dynamics.