The Personal Income Tax is applied on the total net income earned in Egypt for both Egyptians and foreign nationals working in Egypt. It is also imposed for Egyptians’ income earned outside Egypt providing that their main commercial, industrial or professional activities are in Egypt. It is based on income as payment from employment. It is calculated based on progressive rates after exempting a personal allowance of EGP 8,000 at a progressive rate up to 22.5%. as follows:

• 0% for income up to EGP 8000 with no tax credit;
• 10% for income more than EGP 8000 up to EGP 30,000 with 85% tax credit;
• 15% for income more than EGP 30,000 up to EGP 45,000 with 45% tax credit;
• 20% for income more than EGP 45,000 up to EGP 200,000 with 7.5% tax credit; and
• 22.5% for income more than EGP 200,000 with no tax credit.

The tax due is to be calculated at the rate noted for each bracket. The tax credit shall apply only once based on the highest income bracket for the taxpayer.

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