The Shura Council approved on Monday the new income tax law, which introduced widening the top tier tax bracket of 25%, formerly for those earning above EGP 10m, to include those earning EGP 250,000.
Those earning less than EGP 5,000 per annum will continue to pay no taxes. The second tier tax bracket, previously for those earning between EGP 5,000 and EGP 20,000, will now include those earning up to EGP 30,000, who will now pay 10% instead of the previous 15%.
Those earning between EGP 30,000 and EGP 45,000 will now pay the 15% tax rate, with those earning between EGP 45,000 and EGP 250,000 paying 20%, and 25% for those above EGP 250,000.
The previous scheme charged 10% for those earning from EGP 5,000 to EGP 20,000; 15% for those earning between EGP 20,000 and EGP 40,000; 20% for those earning between EGP 40,000 and EGP 10m; and 25% for those earning above EGP 10m.
