Income tax (rates / brackets)

Egypt's income tax system applies progressive rates to resident individuals and non-residents earning Egyptian-source income. The current tax brackets for the 2023/2024 fiscal year range from 0% on income up to EGP 30,000 annually, scaling upward to a maximum marginal rate of 22.5% on income exceeding EGP 1,000,000. Intermediate brackets impose 10%, 15%, and 20% rates at specified thresholds. The system covers salaries, wages, professional fees, rental income, and capital gains, though certain allowances and deductions apply.

Egypt's income tax framework is governed by Law No. 91 of 2005, as amended, and administered by the Egyptian Tax Authority (ETA). The law establishes the tax residency criteria, filing obligations, and withholding requirements for employers and financial institutions.

Recent amendments to Egypt's tax code took effect on 1 July 2023, introducing revised brackets and rates designed to broaden the tax base while adjusting for inflation. These changes modified the threshold amounts and marginal rates across multiple income levels, reflecting the government's fiscal policy adjustments.

Employers and payroll teams must calculate income tax withholding on employee salaries using the applicable brackets for each pay period, remit withheld amounts to the ETA monthly, and maintain detailed payroll records. Non-resident employees earning Egyptian-source income face a flat 20% withholding rate on certain income categories. Annual tax reconciliation and filing are required for individuals earning above the minimum threshold, with penalties imposed for late payment or non-compliance. Proper classification of income type and timely remittance are essential to avoid administrative sanctions.