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CLIENT ALERT: Effects of the new Egyptian Tax Law

Tax rates under the new law are as follows:

       Income annually  Tax rate
   Up to 6,500 LE Tax exempt
6500 LE up to 30000 LE 10%
LE 30000 up to LE 45000 15%
LE 45000 up to 200000 20%
LE 200000              22.5

 

In general, dividends distributed by corporations and partnerships, including companies established under special economic zones, will be taxed at 10%. The tax rate on capital gains generated from trading in securities listed on the Exchange shall be 10%. A temporary additional annual tax of 5% shall be imposed for the current tax year on the annual taxable income of natural persons and on profits of Juridical persons exceeding one million Egyptian pounds.