Amendment to tax brackets and annual personal exemption
Introduction
On 21 February 2024, the Egyptian President issued Law No. 7 of 2024, amending the existing tax brackets of Egyptian Income Tax Law No. 91 of 2005 and raising the annual personal exemption.
The new tax brackets impact employees and other individual taxpayers such as those engaged in commercial and industrial activities, real estate, intellectual and non-commercial activities.
The amendments will take effect from March 2024 for employees, while individuals engaged in commercial and industrial activities, real estate, intellectual and non-commercial activities will be subject to the amended rates starting from the tax period ending after the date of the law’s issuance.
Key points of the law
- The threshold of the zero-rated tax bracket has been raised to reach EGP 40,000 annually.
- The annual personal exemption has been updated to reach EGP 20,000, up from EGP 15,000.
- Amendments have been made to the tax brackets as follows:
Tax rate (%) |
Not exceeding EGP 600,000 |
Between EGP 600,000 and 700,000 |
Between EGP 700,000 and 800,000 |
Between EGP 800,000 and 900,000 |
Between EGP 900,000 and 1,200,000 |
Exceeding EGP 1,200,000 |
0 |
1 to 40,000 |
- | | - | - | - |
10 |
Exceeding 40,000 to 55,000 |
1 to 55,000 |
- | - | - | - |
15 |
Exceeding 55,000 to 70,000 |
Exceeding 55,000 to 70,000 |
1 to 70,000 |
| - | - |
20 |
Exceeding 70,000 to 200,000 |
Exceeding 70,000 to 200,000 |
Exceeding 70,000 to 200,000 |
1 to 200,000 |
- | - |
22.5 |
Exceeding 200,000 to 400,000 |
Exceeding 200,000 to 400,000 |
Exceeding 200,000 to 400,000 |
Exceeding 200,000 to 400,000 |
1 to 400,000 |
- |
25 |
Exceeding 400,000 |
Exceeding 400,000 |
Exceeding 400,000 |
Exceeding 400,000 |
Exceeding 400,000 |
1 to 1,200,000 |
27.5 |
- | - | - | - | - | Exceeding 1,200,000 |
