2025 Closure
1. Annual Income Tax Settlement (For the year 2025)
- Based on Law No. 7 of 2024, covering the period from January to December.
- Tax Brackets (on Net Income):
- These brackets apply progressively, but high-income categories lose the lower brackets (Variable Bracket
System).
- Annual personal exemption is 20,000 EGP
|Annual Income / Tax %|From 0 to 600K EGP|From 600K to 700K EGP|From 700K to 800K EGP|From 800K to 900K EGP|From 900K
to 1.2M EGP|More Than 1.2M EGP| | :-: | :-: | :-: | :-: | :-: | :-: | :-: | |0%|From 1 to 40K EGP|||||| |10%|From 40K
to 55K EGP|From 1 to 55K EGP||||| |15%|From 55K to 70K EGP|From 55K to 70K EGP|From 1 to 70K EGP|||| |20%|From 70K
to 200K EGP|From 70K to 200K EGP|From 70K to 200K EGP|From 1 to 200K EGP||| |22.5%|From 200K to 400K EGP|From 200K
to 400K EGP|From 200K to 400K EGP|From 200K to 400K EGP|From 1 to 400K EGP|| |25%|More than 400K EGP|More than 400K
EGP|More than 400K EGP|More than 400K EGP|More than 400K EGP|From 1 to 1.2M** EGP| |27.5% ||||||More than 1.2M EGP|
Note: As income increases and exceeds certain limits (like 600K, 700K, etc.), the taxpayer skips the lower brackets
(Zero or 10%) and calculation starts immediately from the higher percentages.
2. Aggregate Disciplinary Penalties Deductions
For establishments with 10 workers or more, the aggregate disciplinary penalties deductions from workers (during the
second half of 2025) must be distributed as follows:
- 70%: Goes to the Cultural Institution.
- 30%: Goes to the Labor Social Institution.
3. Wage Limits and Social Insurance (2026)
This table explains the financial limits for wages and the basis for calculating social insurance for the year 2026
|Category|Item|Value| | :-: | :-: | :-: | |Minimum Monthly Gross Salary 7,000 EGP|In case of exempt allowances|5,390
EGP| ||In case of no exempt allowances|7,000 EGP| |Insurable Gross salary (Subscription Wage)|Minimum|2,700 EGP |
||Maximum|16,700 EGP | |Basic Wage (Upon which Emergency Benefit is calculated)|Minimum|440 EGP| ||Maximum|2,720 EGP| 4.
# Social Insurance Percentages (Form 2 for 2026) These are subscription details in "Form 2" for 2026 based on employee
category:
|Category|Employee Share|Employer Share|Minimum Insurable Gross Salary| | :-: | :-: | :-: | :-: | |Insured Employee
(Normal)|11%|18.75%|| |Over Age (Pension Age/Pensioners)|1%|4.75%|| |Under Age (Minors/Trainees)|0%|1.5%|| |Employer
Insurance||21%|| |Driver - First Degree License|||3,110 EGP| |Driver - Second Degree License|||2,970 EGP| |Driver -
Third Degree License|||2,840 EGP| |Driver - Private License|||2,840 EGP | 5. # Statutory Funds and Mandatory Deductions
There are several mandatory funds for establishments that meet specific conditions:
|Fund|Percentage/Value|Condition|Payment Method| | :-: | :-: | :-: | :-: | |Emergency Benefit Fund|1% of Basic
Wage|Applies to establishments with 30 workers or more|Day 15 each MonthlyOr Every 6 Months| |Services Fund (Social,
Health, and Cultural)|Minimum 8 EGP and maximum 16 EGP||Annually| |Martyrs Honouring Fund|Five in ten thousand 0.05% of
the total salary||Monthly| |Training and Rehabilitation Fund|0.25% of the Minimum Insurable Wage, with a minimum of 10
EGP and maximum of 30 EGP|Establishments with 30 workers or more||