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Salary Tax brackets amendments.

Salary Tax brackets Amendment of Some Provisions of the Income Tax Law Promulgated by Law No. 91 of 2005 with the Issuance of Law No. 97 of 2018.


  • Law No. 91 of 2005 was introduced on the 9th of June 2005, and its Executive Regulation on the 27th of December 2005.
  • This law has been subject to many additions and amendments over the prior period.
  • We are currently in the last amendment of some provisions of the Income Tax Law No. 91 of 2005 with the issuance of Law No. 97 of 2018 on 23rd of June 2018, which includes replacing the text of article (8) of the Income Tax Law issued by Law No. 91 of 2005 as follows:

Amendment details:

The tax brackets have been changed to be as follows:

BracketThe brackets before amendmentTax rateThe brackets after amendment
1stZero up to EGP7,200 per yearExemptedZero up to EGP 8,000 annually
2ndEGP 7,201 up to EGP 30,000 annually10%EGP 8,001 up to EGP 30,000 annually
3rdEGP 30,001 up to EGP 45,000 annually15%EGP 30,001 up to EGP 45,000 annually
4thEGP 45,001 up to EGP 200,000 annually20%EGP 45,001 up to EGP 200,000 annually
5thMore than EGP 200,000 annually22.5%More than EGP 200,000 annually

The beneficiaries of the following three brackets were granted a deduction from the tax burden as follows:

NumberBracketsTax deduction before amendmentTax deduction after amendment
1The second bracket80%85%
2The third bracket40%45%
3The fourth bracket5%7.5%

The tax burden deduction stated in the previous table should be given according to the highest bracket of the taxpayer. Fifth bracket taxpayers have no deduction provided.

The total annual net income is rounded to the nearest ten EGP when calculating the tax and the law executive regulation determines how the tax due is calculated.

Provisions of the preceding article shall apply as follows:

Firstly: For salary taxpayers, from the beginning of the month following the law publish date in the Official Gazette (i.e. as of 1/7/2018).

Secondly: For the taxpayer of commercial, professional or non-commercial activity or real estate revenues, from the tax period ending after the law publish date in the Official Gazette (i.e. the tax period ends on 31/12/2018).

Based on the above, we summarize the following:

1- Amendment of first bracket from EGP 7,200 to be EGP 8,000 per year, which results in reducing the tax due and increasing the net salary.

2- Higher tax deduction for three brackets (second, third and fourth) resulting in lower Tax due and enlarged net salary.

Responsibility and Commitment:

Andersen Tax & Legal Egypt’s tax team has prepared this summarized tax report to introduce Law No. 97 of 2018. Efforts have been combined to produce this report with clear and accurate content however this report aims only to spread general information and should not be treated as a legal document or a document that can be used for decision making, or for issuing specialized consultations. Please contact Andersen Tax & Legal Egypt for tailor made solutions.

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