The President has signed Law No.175 of 2023 amending some provisions of the Income Tax Law No.91 of 2005, effective 1 November 2023.
The following amendment affects payroll for the 2023 tax year with effect from 1 November 2023:
- Raised the tax exemption limit to EGP 45 000.00.
- Increased the zero-rated bracket from EGP 21 000.00 to 30 000.00.
- Removed the 2.5% bracket of EGP 21 000.00 to EGP 30 000.00.
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Tax Tables
Annual Individual Income Tax Tables November 2023:
Taxpayers with a higher net taxable income are not allowed to avail of the lower tax brackets:
- The annual net taxable income ranging between 600 000.00 and 700 000.00 is not eligible for the 0% tax bracket.
- The annual net taxable income ranging between 700 000.00 to 800 000.00 is not eligible for the 0% and 10% tax brackets.
- The annual net taxable income ranging between 800 000.00 and 900 000.00 is not eligible for the 0%, 10%, and 15% tax brackets.
- The annual net taxable income ranging between 900 000.00 and 1 200 000.00 is not eligible for the 0%, 10%, 15%, and 20% tax brackets.
- The annual net taxable income above 1 200 000.00 is not eligible for the 0%, 10%, 15%, 20% and 22.50% tax brackets.
Simplified Tax Tables:
Impact of the Egypt Income Tax Amendments on PaySpace
- All open runs have been recalculated.
- The revised tax brackets have been implemented effective 1 November 2023.
- Customers must remain on the “Non cumulative tax method” tax calculation method for the remainder of the tax year.
- The annual personal exemption limit remains unchanged at EGP 15 000.00.
- Employees earning up to 600 000.00 will have a decrease in tax, and employees earning more than 600 000.00 will have an increase in tax.
- Refer to release note #55371 for more information on the tax amendments that were effective from 1 July 2023.
Should you have any questions regarding the Egypt Income Tax Amendments, please feel free to visit our Support page for more ways to get in touch, or email us at [email protected]
The PaySpace Team