# How much tax do foreigners pay on their wages



## Maureen_Elfar

Hi Everyone !

Does anyone know the amount of tax foreigners pay on their wages? I have a feeling my school is taxing me way too much ! I understand there are different tax brackets, if anyone can help I would appreciate it very much, many foreigners at my school are unsure of this issue. When i ask the accounting department, they are very unhelpful.

Many Thanks !

Maureen


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## lukas

Maureen_Elfar said:


> Hi Everyone !
> 
> Does anyone know the amount of tax foreigners pay on their wages? I have a feeling my school is taxing me way too much ! I understand there are different tax brackets, if anyone can help I would appreciate it very much, many foreigners at my school are unsure of this issue. When i ask the accounting department, they are very unhelpful.
> 
> Many Thanks !
> 
> Maureen


Hi,
it is quite easy. From your income the first(see amount under) are taxed (see%):

1-6.000: 0%
6.001-20.000: 10%
20.001-40.000: 15%
40.0001-over: 20%

Further there is an additional tax exempt of the first 4.000.
Also your share of the social insurance is fully deductable.
Premiums of life and medical up to 3.000 deductable.

If you get any kind of allowances like housing, cost of living, education etc. they are taxed as income. 

Do you receive a bonus? If yes, I can also explain it but it is a bit more difficult.

If you need any help just ask...


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## skumar1975

If you are a foreigner and are working on work permit, then your employer will deduct 10% Tax.
If you are here on tourist visa and working then you dont pay tax- many of my friends dont as teachers.


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## txlstewart

Maureen_Elfar said:


> Hi Everyone !
> 
> Does anyone know the amount of tax foreigners pay on their wages? I have a feeling my school is taxing me way too much ! I understand there are different tax brackets, if anyone can help I would appreciate it very much, many foreigners at my school are unsure of this issue. When i ask the accounting department, they are very unhelpful.
> 
> Many Thanks !
> 
> Maureen


We were told that we won't have to pay until the third year in Egypt. Our school has work permits for its foreign staff.


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## skumar1975

Well thats a good news, not sure if the teaching work permits don't attract taxes. My friends work for british council in alex..and they don't pay tax..


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## CatMandoo

skumar1975 said:


> If you are a foreigner and are working on work permit, then your employer will deduct 10% Tax.
> If you are here on tourist visa and working then you dont pay tax- many of my friends dont as teachers.


If your friends are working on tourist visa, it's my understanding then they are working here illegally. Correct me if I am wrong.


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## PaulAshton

If you are working ensure you push for a work permit

The police fine employers and have asked those working illegally to leave, whilst in the past they have turned a blind eye they are checking and asking, it is in violation of immigration rules they see it as taking jobs from Egyptians..people are also finding that work permits are not being renewed

If you love Egypt and want to live here do it proper...those working illegal who also tell others run the risk if friendships go wrong for them to report you..it's a twisted world..


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## CatMandoo

PaulAshton said:


> If you love Egypt and want to live here do it proper.....


Amen to that!:clap2:


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## PoleDancer

The 10% tax rate is typically applied to non-residents with income in Egypt. This normally means foreigners who are present here for less than 183 days a year. Otherwise the tax rates apply in bands (as per above) up to 20%. There is also I think now an additional 5% surtax for income exceeding EGP 10,000,000 pa.

Not paying tax and/or not having a work permit sounds illegal, though it may of course be that there are some exemptions out there which I am unaware of.


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## MaidenScotland

PoleDancer said:


> The 10% tax rate is typically applied to non-residents with income in Egypt. This normally means foreigners who are present here for less than 183 days a year. Otherwise the tax rates apply in bands (as per above) up to 20%. There is also I think now an additional 5% surtax for income exceeding EGP 10,000,000 pa.
> 
> Not paying tax and/or not having a work permit sounds illegal, though it may of course be that there are some exemptions out there which I am unaware of.




Yes if you work for an Embassy you do not pay tax here unless of course you are local,


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## PaulAshton

No taxes on interest income or double taxation treaties between Panama and Egypt always an option for those who wish to avoid tax here legally rather than illegally :juggle:


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