Egypt

Individual - Significant developments

Last reviewed - 26 May 2021

Law no. 44 of 2014, followed by Law no. 53 of 2014, ('the new laws') were enacted in June 2014 to amend some of the provisions of the Egyptian Income Tax Law (no. 91 of 2005). The major amendments of the Law include the following:

  • Worldwide taxation of individuals.
  • Tax on dividend income.
  • Tax on capital gains.

Ministerial Decree no. 172 for the year 2015 ('the new executive regulations') was enacted in April 2015 to amend some of the provisions of the executive regulations of the Egyptian Income Tax Law (no. 91 of 2005). The major amendment of the new executive regulations includes the worldwide taxation of individuals.

The Law introduced the new concept that Egypt should be the individual's centre of commercial or industrial activities in order for foreign-source income to be subject to Egyptian individual income tax.

The executive regulations defined the centre of commercial or industrial activities to be the seat where the individual's decisions necessary for conducting one's activities takes place and where one's vital interests are located.

In August 2015, a new law was introduced (Law no. 96 of 2015) that has introduced some amendments to the Egyptian Income Tax Law (no. 91 of 2005). The major amendments of the law include the following:

  • The application of the tax on dividend income.
  • The application of the tax on capital gains.
  • Payroll tax rates and their applicable brackets.
  • The 5% surtax was abolished.