Yes, life and private health insurance premiums are deducted from the tax base up to EGP 10,000 a year or 15% of net income, whichever is lower. Article 13 of the Income Tax Law provides for this, and the employee's contributions to a private insurance fund count toward the same limit.
Step by step
- 1
Check the policy
Life or private health insurance for the employee, a spouse or minor children, or premiums for a pension policy, together with any contribution to a private insurance fund.
- 2
Give the papers to your employer
A copy of the policy and proof of payment, so payroll can deduct the premiums from the base when calculating monthly tax.
- 3
Work out the allowed amount
The lowest of three: the premiums actually paid, EGP 10,000, and 15% of annual net income after the insurance share.
- 4
Estimate the real saving
The saving equals the deducted amount times your bracket rate, so deducting EGP 10,000 for someone whose income stays in the 22.5% bracket saves EGP 2,250 a year.
- 5
No tax, no saving
Someone who pays no tax because their income falls within the personal exemption and the zero bracket gains nothing from the deduction.
A common mistake is deducting premiums on a policy for a parent or an adult child. The law limits the deduction for life and health insurance premiums to the employee, a spouse and minor children.
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