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 (%)||Tax credit|
|From 0 to 8,000||0||N/A|
|8,000 to 30,000||10||85%|
|30,000 to 45,000||15||45%|
|45,000 to 200,000||20||7.5%|
|More than 200,000||22.5||No tax credit|
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 7,000.
The tax due is to be calculated at the rate noted for each bracket, and the tax credits should apply accordingly to the relevant income bracket for the taxpayer. Nevertheless, for those taxpayers whose income falls within the fifth bracket, no tax credit is to be provided.
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.