If you are more than 400 thousand confused.. a new tax shock

In a step that no one expected, the Egyptian government is seeking to start implementing the amendments to the income tax law, starting from January 2023.

It must be noted that approving the amendments and putting them into effect requires the approval of the House of Representatives, and then the approval of the President of the Republic.

New tax bracket
The Egyptian government intends to impose a new tax bracket of 27.5% on the income of individuals that exceeds 800,000 Egyptian pounds annually (32,000 dollars), according to a draft law to amend some provisions of the income tax law.
400 thousand pounds annual income
The maximum income tax currently applied in Egypt for individuals is 25% for those whose annual income exceeds 400 thousand pounds, and 22.5% for companies whose net profit exceeds 200 thousand pounds annually.

In this regard, Hani Tawfik, an economist, believes that the government's resort to progressive taxation is one of the means to "reduce the deficit in the general budget," considering that adding a new tax bracket at a rate of 27.5% for those with higher incomes is "the ultimate in social justice," stressing that  The state should not, in the current circumstances, be deprived of one of its main resources, including taxes.

Tax exemption
To reduce the burden of the reform program, which Egypt has pursued since 2016, on low-income earners, the authorities have taken a number of measures, including raising wages, raising the tax exemption limit, and applying exceptional salary increases.