Egypt Cuts Income Taxes
August 24, 2015 Taxation in Egypt
CAIRO – Egypt is dropping the rate of income taxes while also lowering their payment threshold, in the hopes of earning more tax revenues to reduce national debt.
Over the weekend the President of Egypt Abdel Fattah al-Sisi announced that the government will lower the rate of income taxes for businesses and individuals.
Currently individuals and companies face a top marginal tax rate of 25 percent, however, this rate will now be cut to 22.5 percent.
However, the threshold for the top marginal rate will now be dropped from EGP 250 000 to a level of EUR 200 000.
The cut to income taxes comes as an addition to an announcement in May when the government announced that a recently proposed 10 percent capital gains tax will be not be enacted.
Over the weekend the Minister of Finance Hany Qadry also made an announcement, saying that Egyo would see the imposition of a value added tax would be instated.
Cumulatively the tax changes are intended to raise a greater level of revenues to combat the growing levels of debt in the country.
Photo By: David Evers