Egypt's economic ministers have reportedly agreed to reduce the corporate and individual income tax top rates from 30% to 22.5%. The standard corporate tax rate and top marginal individual tax rate of 25% were increased in 2014 by 5% for taxpayers with income over EGP 1 million. The increase was to last for 3 years, but is no longer seen as needed.
The new rates are also expected to apply to business established in special economic zones after the change comes into effect. However, business currently enjoying a reduced rate of 10% in special economic zones will continue to enjoy the benefit.
In addition to the change in the income tax rates, Egypt is also preparing to implement a new value added tax (VAT) regime.
Nearly a year after the announcement that value added tax (VAT) legislation was being drafted, Egypt will soon introduce the legislation with an expected implementation in 2016. VAT will replace Egypt's current general sales tax regime, which applies to locally manufactured and imported goods, as well as certain services. Some of the expected aspects of the new VAT regime include:
Additional details will be published once available.
We’re here to answer any questions you have about the Orbitax products and services.
We’re committed to providing high value, low cost tax research and management solutions.
Our Twitter account is where you can find latest information, news updates, offers and lots more.