Egyptian parliament approves amendments to income tax law

Egypt’s Parliament approved by majority vote in a general session on Tuesday amendments to some provisions of the Income Tax Law no. 95 of 2005.

The bill includes amending the last paragraph of Article 58 by separating the treasury bills and bonds in a separate revenue pot, without imposing new taxes on these treasury bills and bonds and maintaining the same rate tax rate of 32 percent mentioned in the amended article.

The original article of the law stipulates: “Subject to any tax exemptions stipulated in other laws, revenues on bonds issued by the Ministry of Finance in the favor of the Central Bank or other banks are subject to tax at the rate of 32 percent, without deducting any costs.

The payer or the recipient of such revenue is obliged to withhold the amount of due tax and remit it to the competent Tax Office within the first fifteen days of the month following the month in which the withholding took place”.

In June 2018, President Abdel Fattah al-Sisi approved other amendments to the Income Tax Law.Under the amended law the first bracket, those with an annual income of 8,000 pounds or less, will be exempted from paying taxes.

The amendment imposed a 10 percent tax on the second bracket with annual income from 8,000 pounds to 30,000 pounds.

It also imposed a 15 percent tax on the third bracket with annual income from 30,000 pounds to 45,000 pounds, while a 20 percent tax will be imposed on the fourth bracket with annual income from 45,000 pounds to 200,000 pounds.

A 22.5 percent tax is imposed on the fifth bracket, that includes people who earn more than 200,000 pounds.

Source: Ahram Online