Published: July 2013
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The recent income tax changes will reduce the profitability of any corporate operating in Egypt either directly, by taxing annual recorded net profit at a higher tax rate of 25% (instead of old two tier tax regime under which corporate making up to EGP 10 million per year where subject to a 20% tax rate and those making higher profits paid 25%), or by increasing the cost of hiring highly qualified/talented employees (those earning above EGP 250 thousand per year). The Policy Brief shows the impact of new amendments on the effective tax rate of selected companies working in Egypt.
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