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Egypt mulls unified income tax ceiling of 22.5% If approved, the measure would lower income tax ceiling from current 30% and also apply to future special economic zones
Egypt's economic ministers have agreed to cut the income tax ceiling to 22.5 percent, from the current level of 30 percent to stimulate investments, the country's ministry of finance announced on Tuesday. The new tax rate would also apply to special economic zones that will be established after the proposed reform comes into effect, a Ministry of Finance spokesman told Ahram Online. Special economic zones in Egypt are currently subject to a corporate income tax of 10 percent. If implemented, the move would be the latest in a series of tax-related measures announced by the government to lure investors ahead of a major economic conference set to take place later this week in Sharm El-Sheikh. Last year the government introduced a 5 percent income tax hike to raise the tax rate for individuals and corporations earning more than LE1 million annually to 30 percent for the following 3 years, in an effort to tackle the country's growing budget deficit. However, recent measures indicate that the focus has shifted to attracting private sector investments, such as a new investment law approved by Egypt's cabinet last week that grants tax incentives to industries. The government said it was also working to keep tax rates as they are for the next ten years. Egypt is aiming to attract $60 billion in foreign direct investments over the next four years, the country's minister of planning Ashraf El-Araby announced earlier this week. http://english.ahram.org.eg/News/124931.aspx
