Individual income tax is imposed on the total net income of the resident individuals for income earned in Egypt, as well as the income earned outside Egypt for resident individuals whose centre of commercial, industrial, or professional activities is in Egypt. Also, tax is imposed on the income of non-resident individuals for their income earned in Egypt.
|Earned income (EGP*)||Tax rate on bracket (%)|
|From 0 to 15,000||0|
|15,000 to 30,000||2.5|
|30,000 to 45,000||10.0|
|45,000 to 60,000||15.0|
|60,000 to 200,000||20.0|
|200,000 to 400,000||22.5|
|More than 400,000||25.0|
* Egyptian pounds
The above-mentioned brackets also apply to non-residents on the income they receive from an Egyptian treasury or against work performed in Egypt. Please note that both residents and non-residents are entitled to an annual salary tax exemption of EGP 9,000.
The tax due is to be calculated at the rate noted for each bracket; however, taxpayers with higher net taxable incomes are not allowed to avail the lower tax brackets, as per the following:
- The annual net taxable income ranging between EGP 600,000 and EGP 700,000 is not eligible for the 0% tax bracket.
- The annual net taxable income ranging between EGP 700,000 and EGP 800,000 is not eligible for the 0% and 2.5% tax brackets.
- The annual net taxable income ranging between EGP 800,000 and EGP 900,000 is not eligible for the 0%, 2.5%, and 10% tax brackets.
- The annual net taxable income ranging between EGP 900,000 and EGP 1 million is not eligible for the 0%, 2.5%, 10%, and 15% tax brackets.
- The net taxable income of above EGP 1 million is not eligible for the 0%, 2.5%, 10%, 15%, and 20% tax brackets.
These rates and credits are applied:
- for payroll taxpayers starting the month following the publication of the law in the official gazette, and
- for commercial, professional, non-commercial, or real estate taxpayers starting from the tax year ends after the publication of the law in the official gazette.