[ad_1]
11:27 am
Wednesday May 13, 2020
Books – Mostafa Eid:
The Minister of Finance, Mohamed Moit, said that the new tax system for income from wages and the like will be implemented at the beginning of next July, after amending some provisions of the “Income Tax” law issued by the Law. No. 26 of 2020.
The minister added in a statement today, Wednesday, after the enactment of the law, that the new system applies to income generated by commercial and industrial activity or income from non-commercial professions, or income from real estate from of the fiscal period that ends after the effective date of the law.
He affirmed that the new amendments reflect the government’s implementation of presidential mandates to progressively achieve fiscal justice and improve fiscal tranches for the benefit of most of society and service to the middle class, in a way that contributes to raise the standard of living of citizens.
The minister noted that the personal income tax under the new amendments will be progressive, fair and will achieve tax savings for the lower middle, middle and upper classes, and addresses the distortions of the current system based on the “tax deduction “
He explained that the new amendments include increasing the tax exemption limit by 60%, as the basic exemption limit for each financier has been raised from £ 8,000 to £ 15,000, in addition to increasing the personal exemption limit for wages £ 7,000 to £ 9,000, and therefore the annual income will be for those with wages up to £ 24,000 are tax free.
The minister said that, according to these amendments, a new social segment was created for low-income people whose annual net income ranges from £ 15 to £ 30,000, in addition to the personal exemption limit, so that the tax is 2.5%.
He added that the tax on the slide of more than 30 thousand pounds to 45 thousand pounds will be 10% instead of 15%, and the tax on the slide of more than 45 thousand pounds up to 60 thousand pounds will be 15% instead of the twenty%.
The Minister declared that the tax on support of more than 60 thousand pounds up to 200 thousand pounds will be 20% instead of 22.5%, and on support of more than 200 thousand pounds and up to 400 thousand pounds 22.5%, and the creating a new segment at a price of 25% for people with higher incomes than that.
