Question No.

1 The following information is related to an Egyptian engineer who has a

permanent residency in Egypt for the year 2022;

1. He works as a consultant engineer in a company with a monthly salary of 4,000. His net
annual income from the company after all deductions and personal exemptions was 39000. It
should be noted that the company deducts 190 as monthly tax on salary and the like.

2. He has a sole proprietorship, where total accrued revenues for the year were 50,000 while
the total accrued expenses for the year were 60,000.

3. He has a private office with cash revenues of 15,000. In addition to 10,000 is still due from
previous operations and was not collected yet. The total expenses are 7,500 including 1,000
that will be paid during the following year. Noting that withheld at source income tax 500.

4. He owns a building consists of 4 floors. 2 floors are rented as furnished units for monthly
rent of 3,000 per floor. The remaining floors are rented according to the provisions of the
Civil Code for monthly rent of 1000 per floor.

Required: Calculate tax due for the year 2022

1.Net annual taxable income from salaries and the 39,000
like
2.Net annual taxable income (loss) from commercial
or industrial activities (Accrual basis)
Total Accrued revenues- Total accrued expenses
50,000- 60,000= (10,000)
3. Net annual taxable income (loss) from non-
commercial or industrial activities (Cash basis)
Total cash revenues- Total cash expenses
15,000-6,500= 8,500
4. Net annual taxable income (loss) from real estate
wealth

Revenues from a building rented

(2 floors × 3000 × 12 months) = 72,000

(2 floors x 1000 x 12 months = 24,000
Total annual revenues from real estate wealth × 50% 48,000
only
96,000 × 50%
=T. Net annual taxable income of natural person 85,500
first bracket exemption of min. cost of living (15,000)
Tax base 70,500

First Second Third Fourth Fifth Sixth Seventh

15,000 15,000 15,000 15,000 140,000 200,000 200,000
0% 2.5% 10% 15% 20% 22.5% 25%
Exempted Rest:25,500
0 = 375 1500 2,250 5,100

Then, The tax amount = 375 + 1500 + 2250 + 5,100 = 9,225

Tax due= tax amount – any taxes paid before
Tax due= 9,225- (190x 12 + 500)
Tax due = 9,225- (2,280 + 500)=
Tax due = 9,225- 2,780= 6,445

Question No.2 Q2, The following data are provided for a resident Egyptian Engineer
during year 2020:
1. He works as an engineer in a company. His net annual income from the company after all
deductions and personal exemption was L.E 70,000. Noting that the company deducted L.E
300 as monthly tax on salaries and the like.
2.He has a sole proprietorship working in the field of construction, its total revenues were L.E
80,000 (including L.E 20,000 received in advance for operations planned to be carried out
during the coming year), while its total expenses for the year were L.E 70,000 (of which L.E
12,000 still outstanding not paid yet).
3. He owns a private engineering office, its cash revenues for the year were L.E 45,000 (in
addition to another L.E 35,000 still due), its total expenses were L.E 20,000 (of which L.E
5,000 will be paid in the coming year). Noting that the withheld at source tax was L.E 500.
4.He owns a building consists of 7 apartments rented during the year as furnished units. His
monthly revenue from each apartment was L.E 2,000.
 Answer:

1.Net annual taxable income from salaries and the 70,000

like
2.Net annual taxable income (loss) from commercial
or industrial activities (Accrual basis)
Total Accrued revenues- Total accrued expenses
60,000- 70,000= (10,000)
5. Net annual taxable income (loss) from non-
commercial or industrial activities (Cash basis)
Total cash revenues- Total cash expenses
45,000-15,000= 30,000
Net annual taxable income (loss) from real estate
wealth

Revenues from a building rented as furnished units

(7 apartments × 2000 × 12 months) = 168,000

Total annual revenues from real estate wealth × 50%
only
168,000 × 50% 84,000
T. Net annual taxable income of natural person 174,000
first bracket exemption of min. cost of living (15,000)
Tax base 159,000

First Second Third Fourth Fifth Sixth Seventh

15,000 15,000 15,000 15,000 140,000 200,000 200,000
0% 2.5% 10% 15% 20% 22.5% 25%
Exempted Rest:114,000
0 = 375 1500 2,250 22,800
0

Then, The tax amount = 375 + 1500 + 2250 + 22,800 = 26,925

Tax due= tax amount – any taxes paid before
Tax due= 26,925- (300x 12 + 500)
Tax due = 26,925- (3,600 + 500)=
Tax due = 26,925- 4,100= 22,825