House to consider new salary-related amendments to Income Tax Act
LEGISLATION WATCH- An MP is trying to sneak in changes to how salaries are taxed: The House Planning and Budget Committee will discuss in the coming days new amendments to the Income Tax Act that would change the tax code and rates on salaries, Al Mal reports. The amendments, proposed by Rep. Mervat Alexan with the stated aim of “reducing pressure on low-income Egyptians,” include:
- increasing the basic salary tax exemption to EGP 9,000 per year (up from EGP 8,000)
- a 10% tax on incomes between EGP 9-30k
- a 15% tax on incomes between EGP 30-45k
- a 20% tax on incomes between EGP 45-200k
- a 22.5% tax on incomes between EGP 200-500k
- a 25% tax on incomes over EGP 500k.
Background: This comes as the government pushes through changes to the tax code relating to how banks account for income coming from their holdings of government paper.