Egypt's cabinet approves raising non-taxable income bracket

Egypt's cabinet approved expanding the first income bracket exempted from taxes, to start taxing from an annual income of LE6,500, up from LE5,000, state-run news agency MENA reported.

The ministerial economic committee proposed in March — though not yet approved by the cabinet — to cut the income tax ceiling to 22.5 percent for individuals and corporations earning more than LE250,000 annually, from 25 percent, in the hope of encouraging investment, days before the Egyptian Economic Development Conference was held in Sharm El-Sheikh.

The committee also approved cancelling a five percent wealth tax for those earning more than one million Egyptian pounds.

The second bracket, which includes those earning annually between LE6,500 and LE30,000, pays 10 percent; the third bracket, from LE30,000 to LE45,000, pays 15 percent; the fourth bracket, including earners who make between LE45,000 and LE250,000, pays 20 percent.