Asked about Egyptian personal income tax for resident individuals, sole proprietors, freelancers, or professionals — to compute, review, or explain it.
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General reference only
This Guide is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for your personal facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.
Source-cited draft. This Guide is source-cited but has not been reviewed by a licensed practitioner. It may be incomplete, outdated, or wrong.
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Quick reference table
| Field | Value | |---|---| | Country | Egypt (جمهورية مصر العربية) | | Tax | Personal Income Tax (ضريبة الدخل على الأشخاص الطبيعيين) | | Currency | EGP (Egyptian Pound — ج.م) | | Tax year | Calendar year (1 January – 31 December) for individuals | | Legislation | Income Tax Law No. 91 of 2005 (as amended) — including the 2024 bracket reset and Laws No. 5, 6 and 7 of 2025 | | Tax authority | Egyptian Tax Authority (ETA — مصلحة الضرائب المصرية) | | Portal | eta.gov.eg | | Filing deadline | **31 March** of the year following the tax year (individuals / sole proprietors) | | Top marginal rate | 27.5% on income over EGP 1,200,000 | | Annual personal exemption | EGP 20,000 (raised from EGP 15,000 effective 21 Feb 2024) — *verify current value* | | Simplified SME alternative | Law No. 6 of 2025 turnover-based regime for businesses up to EGP 20m — see `eg-sme-tax` | | Contributor | Open Accountants Community | | Quality tier | Research-verified — pending sign-off by a qualified Egyptian accountant (محاسب قانوني) | | Skill version | 1.0 |
Progressive tax brackets — TY2026
| Band (taxable income, EGP) | Rate | Native | |---|---|---| | 0 – 40,000 | 0% | معفى | | 40,001 – 55,000 | 10% | | | 55,001 – 70,000 | 15% | | | 70,001 – 200,000 | 20% | | | 200,001 – 400,000 | 22.5% | | | 400,001 – 1,200,000 | 25% | | | Over 1,200,000 | 27.5% | الشريحة العليا |
Rates apply basis
Rates apply to annual taxable income after deducting the personal exemption and allowable deductions. Tax is computed band-by-band (marginal), subject to the high-earner bracket-elimination rule below.
High-earner bracket-elimination rule (مهم)
Egypt does not grant the lower bands to high earners. As total annual taxable income rises past defined thresholds, the 0% band (and then successively higher bands) is withdrawn, so the highest earners are taxed across the upper bands only. The 0% first band is available only to residents whose annual income does not exceed EGP 1,200,000. The exact step thresholds at which each lower band is removed must be verified against the current ETA schedule before filing. When the precise schedule is unknown, compute the straightforward marginal result AND flag that the bracket-elimination adjustment may increase tax — defer the final number to a qualified Egyptian accountant.
Conservative defaults table
| Ambiguity | Default | |---|---| | Unknown whether an expense is deductible | Treat as **non-deductible** until documentary support (e-invoice/receipt) is confirmed | | Unknown whether high-earner bracket-elimination applies | Compute marginal tax AND warn it may be higher; do not finalise | | Unknown personal exemption for the year | Use EGP 20,000 and label "verify current value" | | Unknown residency | Treat as **non-resident** (Egyptian-source income only) until residency confirmed | | Unknown whether SME regime is better | Compute normal regime; cross-ref `eg-sme-tax` for comparison | | Mixed personal/business expense | Disallow the personal portion |
Residency status
Resident if present in Egypt > 183 days in a 12-month period, or Egypt is the centre of vital/commercial interests, or an Egyptian working abroad whose income is paid by an Egyptian treasury. Residents are taxed on worldwide income for activities managed/realised in Egypt; non-residents on Egyptian-source income only.
Activity category
employment (مرتبات وأجور), commercial & industrial activity (نشاط تجاري وصناعي), or non-commercial / professional activity (مهن غير تجارية). Each has its own income-determination rules but feeds the same progressive scale.
Gross receipts / revenue
Gross receipts / revenue for the tax year, with supporting documents.
Business expenses
Business expenses with e-invoices / receipts (electronic invoicing is the ETA standard).
Insurance & pension contributions
Insurance & pension contributions (for the capped deduction).
Withholding tax already suffered
Withholding tax already suffered (advance payments / WHT certificates) to credit against the final liability.
Tax year and SME election
Tax year and whether the SME alternative regime has been elected.
R-EG-1
Do not produce a final filing figure without the residency status confirmed.R-EG-1
R-EG-2
Do not deduct an expense lacking documentary support (e-invoice/receipt). Disallow it.R-EG-2
R-EG-3
Do not finalise tax for income > EGP 1,200,000, or where bracket-elimination may apply, without a qualified Egyptian accountant confirming the band schedule.R-EG-3
R-EG-4
Refuse to advise on tax evasion, under-declaration of receipts, or fictitious expenses.R-EG-4
R-EG-5
Do not apply the simplified SME (turnover-based) regime here; route to `eg-sme-tax` and confirm eligibility (turnover ≤ EGP 20m and election made).R-EG-5
R-EG-6
Do not advise on corporate income tax (companies) — this skill is individuals only.R-EG-6
R-EG-7
Do not give a binding figure where the current-year bracket/exemption values cannot be verified; provide the formula and flag "verify current value."R-EG-7
R-EG-8
Do not net foreign tax credits or apply tax treaties without explicit treaty confirmation; flag for professional review.R-EG-8
Income keyword table
| Keyword (AR) | Keyword (EN) | Treatment | |---|---|---| | إيراد / مبيعات / تحصيل | revenue / sales / receipt | Business income (commercial/industrial) | | أتعاب / استشارات | fees / consulting | Professional (non-commercial) income | | تحويل وارد / إيداع عميل | incoming transfer / client deposit | Income — confirm it is trading receipt | | مرتب / راتب | salary / payroll | Employment income (separate computation) | | إيجار مستحق | rent received | Real-estate revenue (separate category) | | فوائد / عوائد | interest / yield | Investment income — usually WHT/final; exclude from business profit |
Deductible expenses table
| Keyword (AR) | Keyword (EN) | Treatment | |---|---|---| | إيجار مكتب / محل | office / shop rent | Deductible if business-use | | رواتب الموظفين | staff wages | Deductible | | كهرباء / مياه / إنترنت | utilities / internet | Deductible (business portion) | | مشتريات / بضاعة | purchases / stock | Cost of goods sold | | إهلاك أصول | depreciation | Deductible per law schedules | | تأمينات اجتماعية | social insurance | Deductible employer/owner contributions | | دعاية وإعلان | advertising | Deductible if documented | | صيانة | maintenance | Deductible |
Non-deductible table
| Keyword (AR) | Keyword (EN) | Treatment | |---|---|---| | مصاريف شخصية / سحب شخصي | personal / owner drawings | **Non-deductible** | | غرامات / جزاءات | fines / penalties | **Non-deductible** | | ضريبة الدخل | income tax paid | **Non-deductible** | | مصروف بدون فاتورة | expense without invoice | **Non-deductible** (no support) | | توزيعات أرباح موزعة | distributed profits/dividends | Not an expense |
Exclusions table
| Item (AR) | Item (EN) | Treatment | |---|---|---| | إيرادات معفاة | exempt income | Exclude from taxable base | | دخل خاضع لخصم نهائي | income under final WHT | Exclude from progressive base (already taxed) | | رأس مال / قروض واردة | capital injection / loan in | Not income |
T1-1
Tax base is annual net profit for both commercial/industrial and non-commercial (professional) activity.Income Tax Law No. 91 of 2005, as amended
T1-2
Progressive scale 0% / 10% / 15% / 20% / 22.5% / 25% / 27.5%, top band over EGP 1,200,000 (current schedule per ETA / PwC, TY2026). *Verify current value.*T1-2
T1-3
Annual personal exemption EGP 20,000 (raised from EGP 15,000 effective 21 Feb 2024). *Verify current value.*T1-3
T1-4
0% first band available only to residents with annual income ≤ EGP 1,200,000; high-earner bracket-elimination applies above that — *verify the step schedule.*T1-4
T1-5
Insurance/pension premiums + private fund contributions deductible up to the lower of 15% of net revenue or EGP 10,000.T1-5
T1-6
Deductible expenses must be connected to the activity and supported by electronic invoices/receipts; personal expenses, fines, and income tax itself are non-deductible.T1-6
T1-7
Business losses carry forward up to 5 years (restrictions on >50% ownership/activity change).T1-7
T1-8
Annual return filing deadline 31 March following the tax year for individuals.T1-8
T1-9
Simplified turnover-based SME regime for businesses with annual turnover ≤ EGP 20m introduced by Law No. 6 of 2025 (rates ~0.4%–1.5% of turnover by band) — handled in `eg-sme-tax`.T1-9, Law No. 6 of 2025
T1-10
2025 procedural package (Laws No. 5 & 7 of 2025): settlement/amnesty windows and a cap that delay interest/additional tax cannot exceed 100% of principal tax — relevant to penalties, not the base computation.T1-10, Laws No. 5 & 7 of 2025
T2-1
Allocating mixed personal/business expenses — disallow personal share.T2-1
T2-2
Depreciation rates and asset categories — apply law schedules; flag if uncertain.T2-2
T2-3
Treatment of foreign-source income for residents and treaty relief — flag (R-EG-8).T2-3
T2-4
Whether a receipt is a trading receipt vs capital/loan — default to caution.T2-4
T2-5
Exact high-earner band-elimination thresholds — verify; do not finalise.T2-5
Excel working paper columns
| Col | Header (EN) | Header (AR) | |---|---|---| | A | Date | التاريخ | | B | Description | البيان | | C | Counterparty | الطرف الآخر | | D | Category (income/expense/non-deductible/exclusion) | التصنيف | | E | Amount EGP | المبلغ | | F | Document ref (e-invoice no.) | رقم الفاتورة الإلكترونية | | G | Deductible? (Y/N) | قابل للخصم؟ | | H | Note / disallowance reason | ملاحظات |
Summary block formula
Gross receipts (إجمالي الإيرادات) = SUM(income) Less deductible expenses (المصروفات) = SUM(deductible) Net profit (صافي الربح) = receipts − expenses Less insurance/pension (capped) = MIN(15% net revenue, 10,000) Less personal exemption (الإعفاء الشخصي) = 20,000 [verify] Taxable income (الوعاء الضريبي) = net profit − deductions Tax (band-by-band) = progressive calc ⚠ apply high-earner band-elimination if income > 1,200,000 Less WHT / advance payments = credits Tax payable / refundable (المستحق) = tax − credits
Key Arabic banking terms table
| Arabic | English | |---|---| | كشف حساب | bank statement | | رصيد | balance | | مدين | debit | | دائن | credit | | إيداع | deposit | | سحب | withdrawal | | تحويل | transfer | | تحصيل | collection / receipt | | مرتجع | refund / return | | رسوم بنكية | bank charges (deductible business expense) | | فائدة دائنة | interest earned (investment income — exclude from business profit) | | نقاط البيع | point of sale (POS) |
This skill covers Egyptian personal income tax (ضريبة الدخل على الأشخاص الطبيعيين) for resident individuals, sole proprietors (منشأة فردية), and professionals / non-commercial activity (مهن حرة). The AI must reply in the user's language (English or Arabic / Egyptian Arabic) and may use the native tax terms shown throughout.
Currency note: all figures are in Egyptian Pounds (EGP / ج.م). YMYL — verify before relying. Egyptian brackets and exemptions changed in 2024 and 2025. Where this skill says "verify current value," re-confirm against the Egyptian Tax Authority (ETA — eta.gov.eg), PwC Worldwide Tax Summaries (taxsummaries.pwc.com/egypt) or a Big-4 alert before filing.
Quick reference table
| Field | Value |
|---|---|
| Country | Egypt (جمهورية مصر العربية) |
| Tax | Personal Income Tax (ضريبة الدخل على الأشخاص الطبيعيين) |
| Currency | EGP (Egyptian Pound — ج.م) |
| Tax year | Calendar year (1 January – 31 December) for individuals |
| Legislation | Income Tax Law No. 91 of 2005 (as amended) — including the 2024 bracket reset and Laws No. 5, 6 and 7 of 2025 |
| Tax authority | Egyptian Tax Authority (ETA — مصلحة الضرائب المصرية) |
| Portal | eta.gov.eg |
| Filing deadline | 31 March of the year following the tax year (individuals / sole proprietors) |
| Top marginal rate | 27.5% on income over EGP 1,200,000 |
| Annual personal exemption | EGP 20,000 (raised from EGP 15,000 effective 21 Feb 2024) — verify current value |
| Simplified SME alternative | Law No. 6 of 2025 turnover-based regime for businesses up to EGP 20m — see eg-sme-tax |
| Contributor | Open Accountants Community |
| Quality tier | Research-verified — pending sign-off by a qualified Egyptian accountant (محاسب قانوني) |
| Skill version | 1.0 |
Progressive tax brackets — TY2026
| Band (taxable income, EGP) | Rate | Native |
|---|---|---|
| 0 – 40,000 | 0% | معفى |
| 40,001 – 55,000 | 10% | |
| 55,001 – 70,000 | 15% | |
| 70,001 – 200,000 | 20% | |
| 200,001 – 400,000 | 22.5% | |
| 400,001 – 1,200,000 | 25% | |
| Over 1,200,000 | 27.5% | الشريحة العليا |
Conservative defaults table
| Ambiguity | Default |
|---|---|
| Unknown whether an expense is deductible | Treat as non-deductible until documentary support (e-invoice/receipt) is confirmed |
| Unknown whether high-earner bracket-elimination applies | Compute marginal tax AND warn it may be higher; do not finalise |
| Unknown personal exemption for the year | Use EGP 20,000 and label "verify current value" |
| Unknown residency | Treat as non-resident (Egyptian-source income only) until residency confirmed |
| Unknown whether SME regime is better | Compute normal regime; cross-ref eg-sme-tax for comparison |
| Mixed personal/business expense | Disallow the personal portion |
eg-sme-tax and confirm eligibility (turnover ≤ EGP 20m and election made). (R-EG-5)Bank/ledger keywords (Arabic + English) to classify line items. Match on substrings; when ambiguous, apply the conservative default.
Income keyword table
| Keyword (AR) | Keyword (EN) | Treatment |
|---|---|---|
| إيراد / مبيعات / تحصيل | revenue / sales / receipt | Business income (commercial/industrial) |
| أتعاب / استشارات | fees / consulting | Professional (non-commercial) income |
| تحويل وارد / إيداع عميل | incoming transfer / client deposit | Income — confirm it is trading receipt |
| مرتب / راتب | salary / payroll | Employment income (separate computation) |
| إيجار مستحق | rent received | Real-estate revenue (separate category) |
| فوائد / عوائد | interest / yield | Investment income — usually WHT/final; exclude from business profit |
Deductible expenses table
| Keyword (AR) | Keyword (EN) | Treatment |
|---|---|---|
| إيجار مكتب / محل | office / shop rent | Deductible if business-use |
| رواتب الموظفين | staff wages | Deductible |
| كهرباء / مياه / إنترنت | utilities / internet | Deductible (business portion) |
| مشتريات / بضاعة | purchases / stock | Cost of goods sold |
| إهلاك أصول | depreciation | Deductible per law schedules |
| تأمينات اجتماعية | social insurance | Deductible employer/owner contributions |
| دعاية وإعلان | advertising | Deductible if documented |
| صيانة | maintenance | Deductible |
Non-deductible table
| Keyword (AR) | Keyword (EN) | Treatment |
|---|---|---|
| مصاريف شخصية / سحب شخصي | personal / owner drawings | Non-deductible |
| غرامات / جزاءات | fines / penalties | Non-deductible |
| ضريبة الدخل | income tax paid | Non-deductible |
| مصروف بدون فاتورة | expense without invoice | Non-deductible (no support) |
| توزيعات أرباح موزعة | distributed profits/dividends | Not an expense |
Exclusions table
| Item (AR) | Item (EN) | Treatment |
|---|---|---|
| إيرادات معفاة | exempt income | Exclude from taxable base |
| دخل خاضع لخصم نهائي | income under final WHT | Exclude from progressive base (already taxed) |
| رأس مال / قروض واردة | capital injection / loan in | Not income |
All figures illustrative; verify the live bracket/exemption schedule before filing.
Net professional profit EGP 90,000. Personal exemption EGP 20,000 → taxable EGP 70,000.
Gross receipts EGP 600,000; documented deductible expenses EGP 250,000 → net profit EGP 350,000. Exemption EGP 20,000 → taxable EGP 330,000.
Net profit EGP 250,000; life/health/pension premiums EGP 18,000. Deduction capped at the lower of 15% of net revenue or EGP 10,000 → deduct EGP 10,000. Personal exemption EGP 20,000. Taxable = 250,000 − 10,000 − 20,000 = EGP 220,000.
Net taxable income EGP 1,500,000.
Trading turnover EGP 4,000,000; net profit after expenses EGP 700,000.
eg-sme-tax. The taxpayer may benefit materially from the SME regime here — recommend professional confirmation.Non-resident consultant earns EGP 100,000 of Egyptian-source professional fees. Taxed on Egyptian-source income only; personal exemption generally available to residents — verify exemption availability for non-residents and check WHT/treaty position (R-EG-8). Flag for professional review.
eg-sme-tax. (T1-9, Law No. 6 of 2025)Excel working paper columns
| Col | Header (EN) | Header (AR) |
|---|---|---|
| A | Date | التاريخ |
| B | Description | البيان |
| C | Counterparty | الطرف الآخر |
| D | Category (income/expense/non-deductible/exclusion) | التصنيف |
| E | Amount EGP | المبلغ |
| F | Document ref (e-invoice no.) | رقم الفاتورة الإلكترونية |
| G | Deductible? (Y/N) | قابل للخصم؟ |
| H | Note / disallowance reason | ملاحظات |
Build the progressive calc as a stepped formula per band; keep each band on its own row so a reviewer can audit it.
Egyptian statements (كشف حساب) appear in Arabic, English, or both. Common formats:
Key Arabic banking terms table
| Arabic | English |
|---|---|
| كشف حساب | bank statement |
| رصيد | balance |
| مدين | debit |
| دائن | credit |
| إيداع | deposit |
| سحب | withdrawal |
| تحويل | transfer |
| تحصيل | collection / receipt |
| مرتجع | refund / return |
| رسوم بنكية | bank charges (deductible business expense) |
| فائدة دائنة | interest earned (investment income — exclude from business profit) |
| نقاط البيع | point of sale (POS) |
Reconcile statement receipts to declared revenue; unexplained deposits should be queried, not assumed taxable or non-taxable (apply R-EG-1/R-EG-2 discipline).
If required inputs are missing, ask (in the user's language): residency status, activity category, the tax year, gross receipts, documented expenses, insurance/pension contributions, and any WHT suffered. Do not guess — apply conservative defaults and flag.
eg-sme-tax. ✓ (Example 5)eg-sme-tax.This skill is research-verified open-source content from the Open Accountants Community and is pending sign-off by a qualified Egyptian accountant (محاسب قانوني). It is provided for informational and workflow purposes only and does not constitute tax, legal, or accounting advice. Egyptian tax law (Income Tax Law No. 91 of 2005 as amended, and the 2024–2025 amendments) changes frequently; brackets, the personal exemption, and the high-earner band-elimination schedule must be re-verified against the Egyptian Tax Authority (eta.gov.eg) and a reputable source before any return is filed. Always have an Egypt-licensed professional review and sign off. Learn more at openaccountants.com.
Depends on
Other Egypt computations in the OpenAccountants Tax Library.
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
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