Egypt Lowering Income Taxes
March 12, 2015 Taxation in Egypt
CAIRO – Egypt is looking to attract more investment into the country by offering new tax breaks on high incomes.
The top marginal tax rate for companies and individuals in Egypt will be reduced by 2.5 percent, to a rate of 22.5 percent, according to the national Minister of Investment Ashraf Salman.
The new lowered rate will apply on all incomes exceeding EGP 1 million per year.
The tax cut is intended to encourage a greater number of companies and wealthy individuals to invest in Egypt, helping fuel an economic recovery after several years of political and economic turmoil.
In addition to the lowered tax rate, the temporary tax of 5 percent on personal incomes exceeding EGP 1 million per year was also dropped, despite being schedule to run until 2017.
The new changes still need to be ratified, and are expected to be approved in the next three weeks, to come into effect in July next year.
The announcement of the new tax breaks comes only days before Egypt is scheduled to host an economic conference aimed to draw in major international companies to establish bases in the country.
Photo By: Sebastian Horndasch