Last updated: March 2026 · Egyptian Tax Authority 2024 bands · SARS 2025/26 assessment year
Side-by-Side Comparison
| Category | 🇪🇬 Egypt | 🇿🇦 South Africa |
|---|---|---|
| Tax Authority | ETA (Egyptian Tax Authority) | SARS |
| Currency | EGP (E£) | ZAR (R) |
| Tax Brackets | 6 brackets (0%–27.5%) | 7 brackets (18%–45%) |
| Top Marginal Rate | 27.5% MUCH LOWER | 45% |
| Unique Feature | Bracket Exclusion Rule (BER) | Age-based rebates |
| Personal Exemption | EGP 15,000/year | R95,750/year (primary rebate equivalent) |
| Social Insurance (Employee) | NOSI 11% | UIF 1% MUCH LOWER |
| Social Insurance (Employer) | NOSI 18.75% | UIF 1% + SDL 1% |
| Medical Tax Credits | Deduction (not credit) | R364/mo credit MORE VALUABLE |
| Pension / RA | Included in NOSI | Up to 27.5% RA deduction |
| Fiscal Year | January – December | March – February |
Egypt Tax Bands 2024/2026
| Annual Income (EGP) | Rate | Cumulative Tax |
|---|---|---|
| First 40,000 | 0% | EGP 0 |
| 40,001 – 55,000 | 10% | EGP 1,500 |
| 55,001 – 70,000 | 15% | EGP 3,750 |
| 70,001 – 200,000 | 20% | EGP 29,750 |
| 200,001 – 400,000 | 22.5% | EGP 74,750 |
| Above 400,000 | 27.5% | Progressive |
Key Differences
Egypt's Bracket Exclusion Rule (BER)
Egypt's unique Bracket Exclusion Rule ensures that every taxpayer — regardless of income — receives the benefit of the tax-free treatment on the lowest income bracket. This means no taxpayer pays more than 27.5% on any portion of their income, but the effective rate is always lower than the headline marginal rate for every income band. This is a fundamentally progressive mechanism that benefits all taxpayers.
NOSI vs UIF: The Social Insurance Gap
Egypt's NOSI charges 11% of insured salary from employees, compared to South Africa's UIF at just 1%. However, NOSI provides broader coverage including pensions, healthcare, disability, and unemployment insurance — essentially an all-in-one social safety net. South Africa's UIF covers only unemployment, while pensions and healthcare are handled separately (retirement annuities and medical aid). Total SA social contributions including optional medical aid and pension can easily exceed Egypt's 11% NOSI for middle-class workers.
South Africa's Medical Tax Credits
The SA PAYE calculator includes Medical Tax Credits of R364/month for the first two medical aid members — this is a direct credit off tax payable, not just a deduction. Egypt allows medical expense deductions but only against taxable income, making them less valuable. For SA families with medical aid, the MTC can reduce effective tax rates by 2–5 percentage points.
Currency Context
Egypt's EGP has depreciated significantly since 2022, meaning USD-denominated comparisons of tax burden can be misleading. A 27.5% marginal rate on an EGP salary that has halved in dollar terms means expatriates effectively pay very low dollar-denominated taxes on Egypt-sourced income. South Africa's ZAR has also weakened but less dramatically, making SA salaries more stable in real terms for international comparisons.
Frequently Asked Questions
Does Egypt or South Africa have a higher top tax rate?
Egypt's top rate is 27.5% vs South Africa's 45% — Egypt is significantly more attractive on this measure. However, Egypt's NOSI social insurance (11% employee) is much higher than SA's UIF (1%), narrowing the total deduction gap.
What is Egypt's Bracket Exclusion Rule?
The BER ensures every Egyptian taxpayer receives the same benefit of the tax exemption on the lowest bracket, reducing effective rates for all income levels. Combined with the EGP 15,000 personal exemption, it makes Egypt's PAYE system more progressive than the headline rates suggest.
How does South Africa's medical tax credit help?
SA's MTC gives R364/month (for first 2 members) and R246/month (additional members) as a direct deduction from tax payable. A family of 4 on medical aid receives R1,100+/month in tax credits, directly offsetting SA's higher headline rates.
Are there calculators for Egypt's PAYE?
AfroTools is building dedicated North Africa calculators. Currently, the South Africa PAYE Calculator is available for SARS calculations. For Egypt, the Currency Converter helps with EGP/ZAR/USD conversions.
Which country is better for high earners?
Egypt's 27.5% top rate is far better than SA's 45% for high earners. A very high earner in Egypt keeps nearly 20 percentage points more of their marginal income than in South Africa — though the currency risk and economic context differ significantly.