Tax Alert | Your 2025–2026 Personal Income Tax Roadmap in Egypt

1 day ago
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What to File, When to File, and How to Avoid Common Pitfalls?

The personal income tax filing season in Egypt for Tax Year 2025 is now open, for individuals, senior professionals, and business owners, this is the ideal time to ensure that tax filings are accurate, complete, and submitted on time, without last-minute pressure.

Egyptian income tax returns are governed by Income Tax Law No. 91 of 2005, while the framework is clear, practical filing errors, misclassification of income, or delayed submissions can still lead to avoidable issues, early planning remains the most effective way to ensure smooth and predictable compliance.

At Kozman & Co., we support clients throughout the filing season with structure, clarity, and confidence.

Key Filing Deadlines

Individuals Personal income tax returns must be filed no later than 31 March 2026.
Companies Corporate income tax returns are due by 30 April 2026, or within four months from the end of the financial year, whichever is earlier.

All tax returns are submitted electronically through the Egyptian Tax Authority’s official platforms.

How Personal Income Tax Works in Egypt

Egypt applies a progressive income tax system, meaning tax rates increase as taxable income increases.

For most individuals, taxable income commonly includes:

Salaries and wages
Bonuses and cash allowances

Understanding how income is classified, and how it interacts with social insurance obligations, is essential for both employees and employers.

Tax Exemptions and Allowances

Certain income categories are exempt from personal income tax, including:

Pensions
End-of-service benefits
Approved allowances within statutory limits

In addition, eligible taxpayers benefit from a personal annual exemption of EGP20,000

Annual Personal Income Tax Rates

0%: Up to EGP40,000
10%: EGP40,001 – 55,000
15%: EGP55,001 – 70,000
20%: EGP70,001 – 200,000
22.5%: EGP200,001 – 400,000
25%: EGP400,001 – 1,200,000
27.5%: Above EGP1,200,000

Other Income That May Be Subject to Tax

Personal income tax is not limited to employment income, it may also include:

Professional or freelance income
Business income earned by individuals
Capital gains from the sale of shares or assets
Equity-based compensation
Dividends and interest income
Rental income from real estate

Each income category has its own tax treatment, documentation requirements, and reporting considerations.

Social Insurance Contributions

In addition to income tax, social insurance contributions apply to eligible employees and employers, in accordance with applicable regulations.

Contribution overview (current framework)

Old age, disability, and death insurance: 21% (9% employee / 12% employer)
Health insurance: 4.25%
Work injury insurance: 1.5%–2% (employer)
Unemployment insurance: 1% (employer)
End-of-service benefit: 2%

Monthly insured salary limits:

Minimum: EGP 2,000
Maximum: EGP 12,600

Certain benefits, such as meals or housing, may be excluded from contributions within legal limits.

Figures are based on the currently applicable regulations and are subject to change

Common Filing Risks We See Every Season

Many taxpayers only identify issues after submission, when corrections become more complex.

Common risks include:

Missing or incomplete income disclosures
Incorrect income classification
Misalignment between payroll, tax, and social insurance data
Technical issues during online filing

With proper preparation, these issues are largely avoidable.

How Kozman & CO. Supports You

With over 55 years of experience, Kozman & CO. supports individuals and businesses across Egypt with practical and reliable tax services.

Our services include:

Personal and corporate tax return preparation and review
Support for complex and multi-source income cases
Alignment between tax filings, payroll, and social insurance
Ongoing guidance throughout the filing season
Clear, responsive, and professional communication

As a member of SBC Global Alliance, we also assist clients with cross-border and international tax matters.

Plan Early, file with Confidence

Tax filing should be controlled, not rushed, an early review can significantly reduce risks and ensure full compliance.