The deductible costs and expenses
Article (13): Without prejudice to other tax exemptions granted by special
laws, the following are tax exempt:
1) An amount of 4000 pounds as the annual personal exemption for the
taxpayer;
2) Social insurance contributions and other payments deducted according
to the provisions of the social insurance laws or any alternative
systems thereto;
Executive Regulation Article (17):
The alternative systems, when applying the provision of clause [2] of article (13) of this
law, are limited to systems established under the provisions of the aforementioned law
no. 64 of 1980 or any of the other Egyptian laws.
3) Employees' subscriptions in private insurance funds established
according to the provisions of the Private Insurance Funds Law,
promulgated by law no. 54 of 1975.
4) Life and health insurance premiums for the taxpayer, or in favor of his
wife or minor children; or any insurance premiums for pension
entitlement.
Executive Regulation Article (18):
In applying the provisions of clause (4), article (13) of this law, in order to qualify for
exemption, the insurance must be under contract or policy with insurance firms
registered with the Egyptian General Authority for Monitoring Insurance.
5) The following collective in-kind benefits:
(a) Meals offered to employees;
(b) Collective transportation of employees or the equivalent cost;
(c) Health care;
(d) Tools and clothing necessary for performing the work.
(e) Accommodation provided by an employer to employees for the
performance of work.
6) Employees' dividends distributed according to the law.
7) Amounts received by members of the diplomatic and consular corps,
international organizations and other foreign diplomatic representatives,
in the scope of their official work, on condition and to the extent of
reciprocity.
For items (3) and (4), the total exemption for a taxpayer shall not exceed
(15%) of the net revenue or three thousand pounds, whichever is greater. The
same contributions and premiums (paid) from any other income stipulated in
article (6) of this law may not be repeatedly exempted.
Executive Regulation Article (20):
In applying the provision in the last clause of article (13) of this law, the exempted sum
is computed as follows:
If the 15% of the net income is less than 3000 Pounds, the exempted sum is the sum
paid, up to a maximum of 3000 Pounds.
If the 15% of the net income is greater than 3000 Pounds, the exempted amount is the
sum paid, up to a maximum of 15% percent of the net income.
Executive Regulation Article (12):
In determining taxable revenues, the following amounts are excluded:
1- Those amounts exempted pursuant to special laws.
2- An annual personal exemption of 4000 [Four thousand pounds] for the taxpayer.
3- Social insurance contributions and other amounts deducted according to the
Egyptian social security laws or any other alternative system according to the provisions
of law no. 64 of 1980, with respect to Alternative Private Social Security Systems.
4- Employees' contributions to private insurance funds established as per the
provisions of the Private Insurance Funds promulgated by law no.54 of 1975.
5- Life insurance premiums and health insurance in favor of the taxpayer, the spouse or
minor children, and any insurance premiums paid for pension entitlement, according to
the provision of article (18) of these regulations.
6- The value of the following group in-kind benefits:
a) Meals offered to workers.
b) Employee group transportation or transportation allowance.
c) Healthcare.
d) Tools and uniforms needed for work.
e) Accommodation offered by an employer to employees, needed for work.
7- The employee's profit share determined to be distributed according to the law.
8- The stamp tax legally prescribed.
9- An amount of five thousand pounds as a tax-free bracket, on condition that it is not
deducted from the taxpayer's other income sources during the same year.
In applying paragraphs (4) and (5) of this article, the total exemption cannot exceed 15%
of the net revenue or three thousand pounds (whichever is greater) and no exemption
for the same contributions and premiums may be claimed for any other income
prescribed in article (6) of this law.
The amounts deducted must be remitted to the competent tax office within the first
fifteen days of each month for those amounts paid during the preceding month.
In case any changes occur in the taxable revenue during the tax year, the provision of
article (14) of these Regulations will be applied.
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