CAIRO: President Abdel Fatah al-Sisi issued a decree late Sunday reducing the top tax rate on individuals and companies from 25 percent to 22.5 percent, and suspending a controversial 10 percent capital gains tax for two years.
Under the decree, more citizens are exempted from the income tax, as the government widened on Wednesday the exemption bracket from 5,000 EGP ($638) to 6,500 EGP ($830) a year.
According to the decree, citizens whose incomes range between 6,500 EGP and 30,000 EGP will have to pay a 10 percent tax, while the next bracket ranging 30,000 EGP and 45,000 EGP are to pay a 15 percent income tax.
The next bracket of 20 percent income tax will be applicable on Egyptians making more than 45,000 EGP to 200,000 EGP.
The top income bracket to which the new 22.5 percent rate will apply was slashed from 250,000 EGP to 200,000 EGP, added the decree.
In May, Egypt’s Cabinet decided to suspend the capital gains tax in the Egyptian Exchange (EGX) for two years, and kept in place a 10 percent tax on stock dividends.