{"id":568929,"date":"2020-02-09T04:15:55","date_gmt":"2020-02-09T04:15:55","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2020\/02\/09\/mps-want-to-raise-taxes-on-anyone-earning-more-than-egp-1-mn-a-year\/"},"modified":"2020-02-09T04:15:55","modified_gmt":"2020-02-09T04:15:55","slug":"mps-want-to-raise-taxes-on-anyone-earning-more-than-egp-1-mn-a-year","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2020\/02\/09\/mps-want-to-raise-taxes-on-anyone-earning-more-than-egp-1-mn-a-year\/","title":{"rendered":"MPs want to raise taxes on anyone earning more than EGP 1 mn a year"},"content":{"rendered":"

<\/a> LEGISLATION WATCH- MPs want to raise taxes on anyone earning more than EGP 1 mn a year<\/strong>:<\/strong> A draft law put forth last week by Rep. Khaled Shaaban to amend Article 8 of the Income Tax Act could see the introduction of a new top tax rate of 26% on people earning more than EGP 1 mn a year, the local press reports<\/a>. The amendments were submitted as the House of Representatives discussed changes proposed initially by Rep. Mervat Alexan almost a year ago<\/a> to raise the tax exemption threshold.<\/p>\n

Alexan\u2019s initial proposal has gone through several revisions<\/strong>, with the House Planning and Budget Committee approving last month<\/a> a modified bill that would double the tax exemption threshold to EGP 14k, and raise the upper limit for the lower tax brackets. Under these changes, a 10% tax would be applied to annual salaries between EGP 14-40k (instead of EGP 8-30k currently) and a 15% tax on people earning EGP 40-60k (EGP 30-45k currently).<\/p>\n

How does Shaaban\u2019s draft law change things?<\/strong> The new proposal would retain the higher EGP 14k exemption threshold but make more significant changes to the upper limit on each tax bracket, and bring in a 26% rate of tax for those earning more than EGP 1 mn a year. This would change the tax code as follows:<\/p>\n