Egypt: Income Tax on Profits Increased, but Proposed Capital Gains Tax Shelved
Type
E-journal
Date
9 Sep 2011
Jurisdiction
Egypt
Taxonomy
Income Tax, Capital Gains Tax, Customs & Excise Duties, International Tax, Corporation Tax
Copyright
LexisNexis
Relevant company
BDO
Analysis
BDO summarises the income tax increases for companies and individuals, the increase in sales tax on tobacco and cigarettes from 40% to 50%. The plans for raising the individual annual allowance and introducing a new capital gains tax have not been implemented.
The Egyptian Government has increased the rate of income tax on profits of over EGP 10 million made by individuals and companies from 20% to 25% with effect from 1 July 2011. This increase was implemented as one of the measures aimed at reducing the 2011/12 fiscal deficit. The rate of tax on profits of up to EGP 10 million remains at 20%.
For individual taxpayers, there was a proposal to increase the annual exempt amount (personal allowance) in respect of wages and salaries from EGP 4,000 to EGP 7,000. However, this had not been approved, nor implemented yet.