Egypt scraps Millionaire Tax in FDI Drive

Egypt has slashed its top tax rate ahead of a high-profile international investment conference this weekend aimed at attracting support for its ailing economy.

The reduction of the top tax rate to 22.5 per cent means that the 30 per cent levy on annual incomes above $133,000 (the equivalent of 1m Egyptian pounds) has been abolished, writes Heba Saleh in Cairo.

Known as the “millionaire’s tax” the 30 per cent levy was intended as an exceptional tax for three years only.

The government has been struggling to narrow its budget deficit, but it also want to build a business-friendly environment in a bid to attract much needed foreign direct investment.

Source: The Financial Times