The cabinet’s economic team has approved the unification of Egypt’s income tax to a maximum of 22.5% while maintaining the progressive for tranches, Minister of Finance Hany Dimian announced Tuesday.
Dimian highlighted that the government’s decision is coherent with its attempts to support capital based investments. This includes lowering the tax rate for the sales of machines and equipments form 10% to 5%. The tax difference will be provided on one settlement after the tax payer submits the first tax return.
The tax will also be unified to include the economic zones and will remain fixed for at least 10 years.
International tax partner at PriceWaterhouseCoopers Egypt Amr ElMonayer previously told Daily News Egypt that stable, transparent tax policies and modern tax laws are essential for investment.
“I believe that in order to build a sustainable new system, we have to examine two areas of the law,” ElMonayer said.
He explained that having a unified procedures law and unified procedures on income and sales are needed in order to decrease the current procedures and avoid flaws through tax justice.
“The new law must also adopt the international standards on taxation,” He added.