36,000 pounds.. Al-Sisi increase the income tax exemption limit

President Abdel Fattah El-Sisi directed the government to increase the income tax exemption limit to 36,000 pounds annually instead of 24,000 pounds, in the context of the state's efforts to mitigate the effects of the global economic repercussions on citizens.

Ragab Mahrous, advisor to the head of the Tax Authority, revealed the details of President Abdel Fattah El-Sisi’s announcement, raising the tax exemption limit to 36,000 pounds annually instead of 24,000 pounds.

Global economic repercussions

Mahrous said that this matter will reduce the burden resulting from the global economic repercussions on employees and business owners.

The advisor to the head of the Tax Authority added that the tax exemption for the employee is calculated on the monthly salary, and it is calculated on the income for owners of commercial activities.

The date of implementation of the decision

Pointing out that this decision will be applied to employees at the beginning of next April, and it will be applied to owners of commercial activities on December 31, 2023.

8 billion pounds

At the beginning of March 2023, Dr. Mohamed Maait, the Minister of Finance, announced that the state’s public treasury would bear about 8 billion pounds to raise the tax exemption limit on annual income by 25% from 24,000 pounds to 30,000 pounds.

Improve the incomes

The Minister of Finance directed quickly conducting the necessary detailed studies to implement the presidential directives by preparing a package to improve the incomes of workers, owners of private cadres, pensions, and beneficiaries of the "Solidarity and Dignity" programs.

The minister referred to an increase in the financial categories granted to beneficiaries of the "Takaful and Karama" programs by 25% per month, starting from the first of next April, at an annual estimated cost of 6.5 billion pounds, pointing out that the package includes 55 billion pounds annually to increase the pensions disbursed to their owners and beneficiaries by a percentage, 15%, with a minimum of 170 pounds and a maximum of 1635 pounds