{"id":3655,"date":"2023-11-04T21:34:22","date_gmt":"2023-11-04T21:34:22","guid":{"rendered":"https:\/\/riad-riad.com\/?p=3655"},"modified":"2023-11-04T22:17:11","modified_gmt":"2023-11-04T22:17:11","slug":"egypt-amendments-to-the-income-tax-law","status":"publish","type":"post","link":"https:\/\/riad-riad.com\/egypt-amendments-to-the-income-tax-law\/","title":{"rendered":"Egypt – Amendments to the Income Tax Law"},"content":{"rendered":"\n
The Income Tax Law No. 91\/2005 (\u201cIncome<\/strong> Tax<\/strong> Law<\/strong>\u201d) has recently witnessed major amendments by virtue of Amendment Law No. 30\/2023 (issued on 15 June 2023) and Law No. 175\/2023 (issued on 30 October 2023).<\/p>\n\n\n\n These amending laws seek to establish an integral system to restructure income tax in Egypt with the aim of preserving social justice, support investments, and enhance digital transformation and the electronic tax system.<\/p>\n\n\n\n The definition of a permanent establishment (\u201cPE<\/strong>\u201d) has been widened to include non-resident companies operating in Egypt. As per the Amending Law, the following, inter alia, shall be considered a PE:<\/p>\n\n\n\n Individual income tax rates are progressive and subject to gradual rates ranging from 10% to 27.5% depending on the amount of the annual income. Pursuant to Article 8 of the Income Tax Law (as amended), the current applicable income brackets and their corresponding tax rates are updated as follows:<\/p>\n\n\n\n Costs and expenses must be supported by electronic invoices and receipts in order to be eligible for deduction for tax purposes. This requirement is effective for invoices as of July 2023, and from January 2025 for receipts (such periods can be extended for one year).<\/p>\n\n\n\n The annual exempted amount of the premiums paid for life insurance and health insurance is increased to EGP 10,000 (instead of EGP 4,000) or 15% of the net income, whichever is less.<\/p>\n\n\n\n Dividends received by a natural resident from private companies will be subject to a 10% tax, without deducting any expenses. Profits, interests, and dividends received by residents from investment funds, venture capital funds, real estate funds and\/or holding funds – established by virtue of the Egyptian Capital Market Law – will be subject to withholding tax (5% for natural persons and 15% for juridical persons).<\/p>\n\n\n\n The Capital Gain Tax is determined at 10% applied on natural and juridical persons reside in Egypt who dispose shares registered with EGX.<\/p>\n\n\n\n The following are new exemptions \u2013 subject to the stipulated requirements:<\/p>\n\n\n\n The Income Tax Law No. 91\/2005 (\u201cIncome Tax Law\u201d) has recently witnessed major amendments by virtue of Amendment Law No. 30\/2023 (issued on 15 June 2023) and Law No. 175\/2023 (issued on 30 October 2023). These amending laws seek to establish an integral system to restructure income tax in Egypt with the aim of preserving … Read more<\/a><\/p>\n","protected":false},"author":3,"featured_media":3657,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[59,30],"yoast_head":"\nDefinition of Permanent Establishment<\/strong><\/h2>\n\n\n\n
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Updating the Income Brackets and Applicable Progressive Taxes<\/strong><\/h2>\n\n\n\n
Income Tax Rate<\/strong><\/td> Annual net income not exceeding EGP 600,000<\/strong><\/td> Annual net income of more than EGP 600,000 and up to EGP 700,000<\/strong><\/td> Annual net income of more than EGP 700,000 and up to EGP 800,000<\/strong><\/td> Annual net income of more than EGP 800,000 and up to EGP 900,000<\/strong><\/td> Annual net income of more than EGP 900,000 and up to<\/strong> EGP 1,000,000<\/strong><\/td> Annual net income of more than EGP 1,200,000<\/strong><\/td><\/tr> 0%<\/strong><\/td> From EGP 1 to EGP 30,000<\/td> \u00ad_<\/td> _<\/td> _<\/td> _<\/td> _<\/td><\/tr> 10%<\/strong><\/strong><\/td> From EGP 30,001 to EGP 45,000<\/td> From EGP 1 to EGP 45,000<\/td> <\/td> _<\/td> _<\/td> _<\/td><\/tr> 15%<\/strong><\/td> From EGP 45,001 to EGP 60,000<\/td> From EGP 45,001 to EGP 60,000<\/td> From EGP 1 to EGP 60,000<\/td> <\/td> _<\/td> _<\/td><\/tr> 20%<\/strong><\/td> From EGP 60,001 to EGP 200,000<\/td> From EGP 60,001 to EGP 200,000<\/td> From EGP 60,001 to EGP 200,000<\/td> From EGP 1 to EGP 200,000<\/td> <\/td> _<\/td><\/tr> 22.5%<\/strong><\/td> From EGP 200,001 to EGP 400,000<\/td> From EGP 200,001 to EGP 400,000<\/td> From EGP 200,001 to EGP 400,000<\/td> From EGP 200,001 to EGP 400,000<\/td> From EGP 1 to EGP 400,000<\/td> <\/td><\/tr> 25%<\/strong><\/strong><\/td> More than EGP 400,000<\/td> More than EGP 400,000<\/td> More than EGP 400,000<\/td> More than EGP 400,000<\/td> More than EGP 400,000<\/td> From EGP 1 to EGP 1,200,000<\/td><\/tr> 27.5%<\/strong><\/td> _<\/td> _<\/td> _<\/td> _<\/td> _<\/td> More than EGP 1,200,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Deductible Costs<\/strong><\/h2>\n\n\n\n
Increasing the Exempted Amount of Insurance Premiums<\/strong><\/h2>\n\n\n\n
Dividend Tax and Withholding Tax<\/strong><\/h2>\n\n\n\n
Capital Gain Tax<\/strong><\/h2>\n\n\n\n
New Tax Exemptions<\/strong><\/h2>\n\n\n\n
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