Gov’t proposes new top rate of personal income tax
Gov’t proposes new top rate of personal income tax: Individual taxpayers earning more than EGP 400k per year will face a new, 25% tax bracket the top end of their income under amendments to the tax code being proposed by the Finance Ministry, according to a document seen by El Watan. The tax hike is part of a package of changes that will also introduce new income tax brackets, raising the number of bands to seven from five, and lowering rates for several existing bands. As it stands, the proposal would reportedly be:
- Those earning between EGP 15-30k would be taxed 2.5%;
- Those earning between EGP 30-45k would be taxed 10%;
- Those earning between EGP 45-60k would be taxed 15%;
- Those earning between EGP 60-200k would be taxed 20%;
- Those earning between EGP 200k-400k would be taxed 22.5%; and
- Those earning more than EGP 400k would be taxed at 25%.
The ministry has also outlined the specifics of new raises for public sector employees to take effect in July: All government employees will receive raises between EGP 150 to EGP 375 on top of their annual increments in the next fiscal year, Finance Minister Mohamed Maait said at a press conference, according to a ministry statement. Confirming President Abdel Fattah El Sisi’s directive at the weekend, Maait said that those covered by the Civil Service Act will receive a raise amounting to 7% of the gross wage while others will receive a bump of 12% of their basic salary (up from 10% in FY2019-2020). The sum total of financial incentives will be EGP 31 bn for the fiscal year, Maait said.