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Egypt considers increasing 'zero-tax bracket'

Egypt is considering regular reviews to increase the "zero-tax bracket" following inflation rates as part of the new income tax bill.
18.06.24 | Source: Ahram Online

Maait said in line with presidential directives to take all supportive measures for low- and middle-income earners to mitigate the inflationary effects linked to external and internal economic challenges, the new income tax bill aims to ease the tax burden on low- and middle-income workers in both the public and private sectors, according to a statement issued by the Ministry of Finance. 

“This will be achieved by restructuring the salary tax brackets to ensure social justice and considering regular reviews to increase the 'zero-tax bracket' under inflation rates,” he stated, adding that the new bill does not include any increase in income tax rates, including the "upper bracket."

The new bill aims to define taxable incomes more clearly, simplifying and deepening tax certainty.

Moreover, Maait said there is a commitment to social dialogue and consensus on the bill or any tax amendments before they are referred to the cabinet and the House of Representatives.

He explained that there had previously been an agreement with business representatives on the necessity of drafting a new income tax law that reflects global best practices and aligns with international changes.