July 9, 2017

Raising Minimum Tax Threshold for Individuals

On 21 June 2017, Law no. 82 of 2017 was issued to increase the first bracket exempted
from income tax from EGP 6,500 to 7,200. The current applicable tax brackets are as

No. Tax Bracket Tax Rate
1. Up to EGP 7,200 0%
2. More than EGP 7,200 and up to EGP 30,000 10%
3. More than EGP 30, 000 and up to EGP 45,000 15%
4. More than EGP 45, 000 and up to EGP 200,000 20%
5. More than EGP 200,000 22.5%

The Law grants, for the first time, tax deduction for taxpayers who fall under the
second, third and fourth brackets. The second bracket will get a deduction of 80% (i.e.,
will pay only 20% of their due tax), the third bracket will get 40% and the fourth will
bet 5%. Taxpayers falling under the fifth bracket will pay their full income tax.

Such tax deduction should apply only once based on the highest bracket in which the
taxpayer is subject.

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