Finance Ministry Dispels Rumours about Income Tax Hikes
It's OK, paycheck, you can come out from the mattress now.
Minister of Finance adviser for taxation, Osama Tawakol, denied claims regarding increases in income taxes or any taxes over the coming period, this past Friday.
In an effort to facilitate any tax burden on citizens, starting July 2017, the ministry altered tax rates exempting employees with annual salaries going up to EGP 8,000 instead of EGP 7,200. The new amendments include a 15% income tax on salaries for those earning between EGP 8,000 to EGP 30,000 and a 55% tax on those earning between EGP 30,000 to EGP 45,000.
Those earning annual salaries between EGP 45,000 to EGP 200,000 pay 92.5 % of their salaries in taxes.
Focusing on preserving the stability of fiscal policies, the ministry won’t be raising tax rates as investors base their projects’ feasibility studies on the declared tax rates, according to Tawakol. The minister also added that the tax has declined from 25 % to 22.5 %.
Main image taken from AlBawabhnews.com