Decree Law No. 96 for 2015 amending Income Tax Law No. 91 for 2005 was published in the Official Gazette No. 24.bis for 2015 on 20 August 2015.
The main changes are summarized below:
1) The standard corporate tax rate is reduced from 25% to 22.5% as announced previously by the Minister of Finance.
2) New progressive tax rates and brackets are introduced for individual income tax purposes.
3) The additional 5% tax rate introduced by Decree Law No. 44 for 2014 on taxable income exceeding EGP 1 million is applicable only for 1 year. Accordingly, the additional tax is due from corporate and individual taxpayers only for assessment year 2014 instead of years 2014, 2015 and 2016 as initially planned.
4) Dividends distributed by Egypt-resident companies to other resident individuals or corporate entities (as well as expenses incurred for the purpose of the production of such dividends) are excluded from the taxable base of the recipients. Accordingly, the withholding tax on dividends paid to resident persons is a final tax.
5) The taxation of capital gains on listed shares at the rate of 10%, which was introduced by Decree Law No. 53 for 2014, is suspended for a 2-year period as of 17 May 2015. The suspension was announced by the Prime Minister in May 2015.
6) The new Decree Law No. 96 for 2015 has been effective from 21 August 2015. The Executive Regulation will be amended to clarify the implementation of the new rules.
