{"id":578101,"date":"2022-12-15T04:00:10","date_gmt":"2022-12-15T04:00:10","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/12\/15\/finmin-mulls-wage-tax-hike\/"},"modified":"2022-12-15T04:00:10","modified_gmt":"2022-12-15T04:00:10","slug":"finmin-mulls-wage-tax-hike","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/12\/15\/finmin-mulls-wage-tax-hike\/","title":{"rendered":"FinMin mulls wage tax hike"},"content":{"rendered":"

<\/a> Salaries above EGP 800k could be subject to a new top tax rate:<\/strong> The Finance Ministry is proposing amendments to the Income Tax Act that would enforce a new 27.5% wage tax rate on salaries of more than EGP 800k a year, a source with knowledge of the matter told Enterprise. The amendments have been sent to the House of Representatives for discussion, our source said. Annual earnings over EGP 400k are currently taxed at a top rate of 25%.<\/p>\n

A higher top rate would help the government fund proposed tax cuts that would benefit lower income earners<\/strong>, our source told us. The Finance Ministry earlier this year drafted amendments<\/a> that would raise the income tax exemption threshold for all earners to EGP 15k from EGP 9k.<\/p>\n

Raising the ceiling <\/strong>for income exempt from wage tax<\/strong> to EGP 15k from EGP 9k will impact some 22.5 mn taxpayers,<\/strong> our source told us.<\/p>\n

OUR TAKE- <\/strong>New taxes in the current climate make it more expensive for businesses to give raises and invest in the very growth that creates new jobs \u2014 particularly at companies that do not employ large numbers of blue collar workers. The folks at the Tax Authority have a tough job \u2014 we don\u2019t envy them. But amid spiraling inflation, high interest rates, and the prospect of further weakness in the EGP, today simply isn\u2019t the day to make it more expensive to employ the nation\u2019s best and brightest.<\/p>\n","protected":false},"excerpt":{"rendered":"

Salaries above EGP 800k could be subject to a new top tax rate: The Finance Ministry is proposing amendments to the Income Tax Act that would enforce a new 27.5% wage tax rate on salaries of more than EGP 800k a year, a source with knowledge of the matter told Enterprise. The amendments have been […]<\/p>\n","protected":false},"author":1,"featured_media":578102,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7385],"tags":[679,72,276,7313,884,69,3583],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-578101","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-taxation","tag-egyptian-tax-authority","tag-enterpriseam","tag-finance-ministry","tag-income-tax","tag-income-tax-act","tag-tax","tag-taxation","wpautop","entry"],"acf":{"mongo_id":"d05905c2-1ee1-4331-b531-13aef7d9b5c7","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2022\/12\/322.jpg","photo_position":"above","related_issue":[578094],"teaser":"","voice_url":""},"yoast_head":"\nFinMin mulls wage tax hike - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2022\/12\/15\/finmin-mulls-wage-tax-hike\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"FinMin mulls wage tax hike\" \/>\n<meta property=\"og:description\" content=\"Salaries above EGP 800k could be subject to a new top tax rate: The Finance Ministry is proposing amendments to the Income Tax Act that would enforce a new 27.5% wage tax rate on salaries of more than EGP 800k a year, a source with knowledge of the matter told Enterprise. 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PLUS: Gov\u2019t trims growth forecast.","author":"enterpriseam admin","date":"20 March 2023","format":false,"excerpt":"The move is expected to impact 22 mn people","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/11\/vintage-tax-records-1600px.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":587611,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/05\/30\/house-approves-a-whole-lot-of-tax-amendments\/","url_meta":{"origin":578101,"position":2},"title":"House approves a whole lot of tax amendments","author":"enterpriseam admin","date":"30 May 2023","format":false,"excerpt":"The government is moving to curb the budget deficit while boosting EGX investment ahead of CGT","rel":"","context":"In "Taxation"","block_context":{"text":"Taxation","link":"https:\/\/enterpriseam.com\/egypt\/category\/regulation\/taxation\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/5\/1603.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":569990,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/03\/15\/low-earners-to-get-larger-than-expected-tax-cut\/","url_meta":{"origin":578101,"position":3},"title":"Low earners to get larger-than-expected tax cut","author":"enterpriseam admin","date":"15 March 2020","format":false,"excerpt":"LEGISLATION WATCH- Low income earners to get larger-than-expected tax cut on orders of President El Sisi: President Abdel Fattah El Sisi yesterday ordered the Madbouly government to provide larger income tax breaks to low-income earners under draft amendments to the Income Tax Act that will soon go up for a\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/3\/172.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":570021,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/03\/16\/govt-proposes-new-top-rate-of-personal-income-tax\/","url_meta":{"origin":578101,"position":4},"title":"Gov\u2019t proposes new top rate of personal income tax","author":"enterpriseam admin","date":"16 March 2020","format":false,"excerpt":"Gov\u2019t proposes new top rate of personal income tax: Individual taxpayers earning more than EGP 400k per year will face a new, 25% tax bracket the top end of their income under amendments to the tax code being proposed by the Finance Ministry, accordingto a documentseen by El Watan. The\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/3\/185.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":593526,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/10\/01\/fei-suggests-amendments-to-income-tax-act\/","url_meta":{"origin":578101,"position":5},"title":"FEI suggests amendments to Income Tax Act","author":"enterpriseam admin","date":"1 October 2019","format":false,"excerpt":"LEGISLATION WATCH- FEI suggests changes to Income Tax Act: The Federation of Egyptian Industries (FEI) is lobbying the Finance Ministry for changes to the Income Tax Act, the local press reported. 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