Law No. 91 of the year 2005 promulgating the Income Tax Law

1. Law No. 91 of the year 2005 promulgating the Income Tax Law Salaries And The Like

2. Article : 9 • The tax shall apply to salaries and the like as • follows: • 1 - All earnings due to the taxpayer resulting from his/her work with third parties with or without a contract, periodically or non-periodically, whatever the names, forms or reasons of those earnings, and whether they are for works performed in Egypt or abroad and paid by a source in Egypt, including wages, remunerations, incentives, commissions, grants, overtimes, allowances, shares and portions in profits, as well as the monetary privileges and allowance in-kind of all types;

3. 2- Earnings due to the taxpayer from a foreign source for works performed in Egypt; • 3- Salaries and remunerations of chairmen and members of the boards of directors in the public sector companies and the public business sector companies, who are not shareholders; • 4- Salaries and remunerations of chairmen, members and directors of the boards of directors in the associations of capital in return for their administrative work;

4. The executive regulations of the present law shall determine the bases of estimating the value of the allowance in-kind. • The company's cars subject to the personal disposal of the worker : the value of the benefit is specified at 20% of the cost of fuel, insurance, and periodic maintenance with respect to such cars, whether owned by the company or leased. • Mobiles are subject to tax at rate of 20% from the communication expenses. • Loans offered to employees are subject to tax, in case its amount exceeds 6 months' salary up to 7%. • The employer share regarding employee life insurance are subject to tax. • The company's stocks granted at a value less than the stock market value:

5. The value of the benefit is specified on the difference between the stock market value on the date of receiving the grant, and the value required to be paid by the worker. • In case of restrictions existence on transferring the title, the benefit shall not be realized provided that these restrictions are elapsed. • In all cases, the employer shall withhold and pay it according to article (14) of the law, and include the annual reconciliation all the benefits received by each employee as per the preceding rules. The party is committed to receive the revenue is required to withhold the tax and pay it if he obliged to article (16) of the law.

6. Non Residents + Who work in other than work places • In exception to the provisions ofarticle-8 of the present law, the tax shall apply to all the amounts paid to the non-residents whichever is the entity or organization employing them for performing services under its supervision. The tax shall also apply to the amounts obtained by the residents from other than their original work places at a rate of (10%) without any reduction for facing the costs and without making any other deduction. • In all cases, the tax shall be held and delivered to the concerned Taxation Administration within the first fifteen days of each month according to the rules and procedures to be determined in the

7. The following shall not be taxable: • 1- Pensions; • 2- Severance pay.

8. Exemptions + Costs • Subject to the other tax exemptions prescribed in special laws, the following shall be exempted from the tax: • 1-An amount of 4,000 pounds, an annual personal exemption for the taxpayer; • 2- Social insurance and other contributions to be deducted according to the provisions of the social insurance laws or any other alternative systems;

9. 3- Employees' contributions to the private insurance funds established according to the provisions of the Private Insurance Funds Law as promulgated by law No.54 for the year 1975; • 4- Premiums of Life and health insurance on the taxpayer in his favor or in favor of the spouse or minor children, and any insurance premiums for pension entitlement;

10. The following collective allowance in-kind: • a) Meals distributed to the workers; • b) Collective transportation of workers or equivalent transportation cost; • c) Health care; • d) Tools and uniforms necessary for performing the work; • e) Tenements provided by the employer to the workers for performing their work;

11. 7- All that is obtained by members of the diplomatic and consular corps, the international organizations, and other foreign diplomatic representatives within the context of their official work, conditional upon reciprocity of treatment and within the limits of that treatment.

12. With regard to items (3 and 4), it is stipulated that the total exemption accorded to the taxpayer shall not exceed • 15% of the net income or • threethousand pounds, whichever is more, and the same contributions and premiums shall not be re-exempted from any other income prescribed in article-6 of the present law.

13. The tax shall be payable on the excess of five thousand pounds of the total net income realized by the resident taxpayer during the year. • The tax rates shall be as follows: • First bracket: • More than 5,000 pounds up to 20,000 pounds (10%) • Second bracket: • More than 20,000 pounds up to 40,000 pounds (15%) • Third bracket: • More than 40,000 pounds (20%) • The annual total net income shall be rounded, when calculating the tax, up to the nearest less ten pounds