Client Alert: Egyptian Paper Tax Card To Be Replaced With The Magnetic Card
The Egyptian Tax Authority has suspended any dealings through paper tax card and replaced it with the magnetic card (Smart Card). On the such account, the Head of the Egyptian Tax Authority has confirmed that the paper tax card for both importers and exporters shall be suspended in any dealings with the Customs Department, effective on December 31th, 2017. Accordingly, the new smart tax card shall be used starting from January 1st, 2018.
It’s worth noting that the Director of the Central Department of the Affairs of the Commercial Community has broadened the scope of such suspension to include any dealings with all the customs departments either importing and exporting or otherwise.
Tax rates under the new law are as follows:
| Annual Income | Tax Rate |
| Up to LE 6,500 | Tax exempt |
| LE 6,500 up to LE 30,000 | 10% |
| LE 30,000 up to LE 45,000 | 15% |
| LE 45,000 up to LE 200,000 | 20% |
| LE 200,000 | 22.5% |
In general, dividends distributed by corporations and partnerships, including companies established under special economic zones, will be taxed at 10%. The tax rate on capital gains generated from trading in securities listed on the Exchange shall be 10%. A temporary additional annual tax of 5% shall be imposed for the current tax year on the annual taxable income of natural persons and on profits of Juridical persons exceeding one million Egyptian pounds.