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The new income tax law

The Ministry of Finance announced details of the provisions of the Tax Deduction Law on Income Tax. The discount rate on the income tax brackets in Egypt was 2017 for employees, private sector employees and lower income classes.

Discount rate on income tax bracket 2017 in the new tax deduction law

Income tax bracket ratio 2017 in Egypt according to the Income Tax Law

- The first tranche, which has an annual income of up to LE 7,200, is exempt from tax.

- The second tranche is more than 7200 pounds up to 30000 pounds per year, the tax rate is (10%).

- The third tranche is more than 30 thousand pounds up to 45 thousand pounds per year, the tax rate is (15%).

- The fourth tranche is more than 45 thousand pounds up to 200 thousand pounds, by (20%).

- The fifth tranche is more than 200 thousand pounds (22.5%), provided that the subjects of the following three tranches be deducted from the tax due to them, where the second tranche 80%, the third tranche 40% and the fourth tranche 5%.

The text of the tax deduction law to be applied as of July 2017

The text of the draft law to be applied on July 1 after the approval of the House of Representatives, as follows:
Draft Law amending some provisions of the Income Tax Law promulgated by Law No. 91 of 2005, the President of the Republic: Having examined the Constitution and the Income Tax Law promulgated by Law No. 91 of 2005, and upon the opinion of the Council of State, the following project shall be referred to the House of Representatives:
Article (1) Article (8) of the Income Tax Law issued by Law No. 91 of 2005 shall be replaced by the following text:

Tax rates are as follows:

First tranche: Up to LE 7200 per year is exempt from tax

Second slide: more than 7200 pounds up to 30000 pounds (10%)

Third tranche: More than 30,000 pounds up to 45000 pounds (15%)

The fourth tranche: more than 45000 pounds up to 200000 pounds (20%)

The fifth tranche: more than 200,000 pounds (22.5%).

The discount rate on the tax brackets in the new law 2017

The following three tranches shall be granted a deduction from the tax payable as follows:

- The second tranche is 80%.

- The third tranche 40%

- The fourth tranche is 5%.

The deduction of the deduction referred to in the preceding paragraph shall be made for one time according to the highest segment in which the taxpayer is located. This deduction shall not be granted to those subject to the fifth tranche. The total annual net income shall be rounded at the calculation of the tax to the nearest ten pounds.

Article 2 The provisions of the preceding Article shall apply as follows

First: For the taxpayers and the like: as of the month in which this law is published in the Official Gazette.

Second: For the financiers of commercial, professional or non-commercial activity or real estate revenues: from the tax period ending after the date of the implementation of this law.