Egypt flag Egypt: Business Environment

Tax rates in Egypt

Tax Rates

Consumption Taxes

Nature of the Tax
Value-added tax (VAT)
Tax Rate
The standard VAT rate is 14%.
Reduced Tax Rate
Machinery and equipment used for the purpose of producing a commodity or rendering a service are subject to a 5% VAT.
Exports of goods or services, as well as goods or services provided by companies located in the free zones, are zero-rated.
Other Consumption Taxes
Excise duty is levied on alcoholic drinks and coffee. An additional duty is levied on brandy, cognac, gin and whisky.
A table tax applies to tobacco and tobacco products; petroleum products; vegetable oils; animal oils and tallow, partially or wholly hydrogenated; crackers and flour products; processed potatoes; fertilizers, agricultural pesticides; gypsum; contracting work and construction (supply and installation); soap industrial detergents for home use; air-conditioned means of transportation, such as buses and trains between the governorates; professional and consultancy services; media and program production.
Items subject to the table tax in addition to VAT include soda water; nonalcoholic drinks; alcoholic drinks; beer (alcoholic and nonalcoholic); aromatic preparations (skin or hair care); TVs larger than 32 inches, refrigerators larger than 16 feet; air conditioning units and their independent devices; golf carts and similar vehicles; passenger cars; communications services through cellular phone networks.

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Corporate Taxes

Company Tax
22.5%
Tax Rate For Foreign Companies
Resident companies are taxed on worldwide income. Non-resident corporations and partnerships pay tax on income derived from their permanent establishment in Egypt.
Capital Gains Taxation
Gains from the sale of shares listed on the Egyptian stock exchange are taxed at 10% while gains from unlisted shares are included in ordinary income and taxed at the 22.5% standard rate.
Main Allowable Deductions and Tax Credits
In order to be deductible, expenses must be business-related, necessary for performing the company’s activity and documented.
Deductible costs include bad debt, start-up expenses, depreciation and amortization and a percentage of real estate value. Donations to the Egyptian government are fully deductible, while those to local charitable organizations are only deductible up to 10% of taxable income. The same limit applies to payments to head office made by a branch.
The foreign tax paid by a resident company on its profits earned abroad is deductible from the tax payable in Egypt, whereas losses cannot be deducted.
Generally, losses can be carried forward for a maximum of five years, while carrybacks are not allowed (except for contracting companies, limited to the extent of the duration of the contract).
Other Corporate Taxes
A tax on real-estate assets is levied at 10% of rental value. A deduction on the taxable base is allowed to cover related maintenance costs at 30% for residential property and 32% for non-residential property. Residential property is tax exempt if the annual rental value is less than EGP 24,000 and a non-residential property is exempt if the annual rental value is less than EGP 1,200.

Concerning social insurance contributions, a new comprehensive health insurance system has been introduced. The total applicable contribution rate is 29.75%, with the employer share of it being 18.75%. The 2022 minimum and maximum monthly salary caps are EGP 1,400 and EGP 9,400, respectively (increased by 15% on 1 January of each year until 2027).

There are two distinct types of stamp tax, which are imposed on legal documents, deeds, banking transactions, company formation, insurance premiums, and other transactions, as follows: the nominal stamp tax is imposed on documents, regardless of their value. The tax rate for items such as contracts is EGP 0.9 for each paper; whereas a percentage or proportional stamp tax is levied based on the value of transactions (from 0.05% to 0.3% of the total proceeds realised). An annual proportional stamp tax at the rate of 0.4%, shared by the bank and the client, is imposed on a bank's loans.
Stamp tax applies to the total value of trading in securities (except for public treasury bills and bonds), without any deduction allowed for expenses. The tax is imposed on both the buyer and the seller, at rates of 0.125% for non-resident sellers and nonresident buyers and 0.05% for resident sellers and resident buyers (the rate can go up to 0.3% in the case of a sale or acquisition of at least 33% of the shares or voting rights (in terms of number or  value) of a resident company, or assets or liabilities of a resident company by another resident company, in exchange for shares in the acquiring company.

A solidarity contribution of 0.25% of annual revenue to fund the state health insurance scheme is levied by government agencies, partnerships and companies are required to pay.

Other Domestic Resources
MOF - Egyptian Tax Authority, (in Arabic)
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Country Comparison For Corporate Taxation

  Egypt Middle East & North Africa United States Germany
Number of Payments of Taxes per Year 27.0 20.8 10.6 9.0
Time Taken For Administrative Formalities (Hours) 370.0 204.0 175.0 218.0
Total Share of Taxes (% of Profit) 44.4 32.1 36.6 48.8

Source: Doing Business, Latest available data.

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Individual Taxes

Tax Rate

Individual income tax Progressive rate from 0% to 22.5%
Up to EGP 15,000 0%
From EGP 15,001 to 30,000 2.5%
From EGP 30,001 to 45,000 10%
From EGP 45,001 to 60,000 15%
From EGP 60,001 to 200,000 20%
From EGP 200,000 to 400,000 22.5
Above EGP 400,000 25%
The annual net taxable income ranging:
- between EGP 600,000 and EGP 700,000 is not eligible for the 0% tax bracket.
- between EGP 700,000 and EGP 800,000 is not eligible for the 0% and 2.5% tax brackets.
- between EGP 800,000 and EGP 900,000 is not eligible for the 0%, 2.5%, and 10% tax brackets.
- between EGP 900,000 and EGP 1 million is not eligible for the 0%, 2.5%, 10%, and 15% tax brackets.
- above EGP 1 million is not eligible for the 0%, 2.5%, 10%, 15%, and 20% tax brackets.
Allowable Deductions and Tax Credits
Available tax deductions include: a personal deduction of EGP 9,000 annually (in addition to the first EGP 15,000 of income that are subject to a 0% tax). Social insurance contributions and employees' contributions to private insurance funds are deductible. Premiums for life and health insurance for self or dependents can be deducted up to 15% of the net revenue or EGP 10,000, whichever is lower. General documented costs connected with the commercial or industrial activity are also deductible. For self-employed, losses may generally be carried forward against future business profits for a period of maximum five years.
Special Expatriate Tax Regime
Individuals are considered residents for tax purposes if they are present in Egypt for more than 183 days in a fiscal year; are deemed to have a permanent domicile in Egypt; or are Egyptian nationals performing their work in a foreign country but being paid by an Egyptian source.
Non-residents are subject to tax on income earned or realized in Egypt only, at the same rates as residents.

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Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
International tax conventions signed by Egypt
Withholding Taxes
  • Dividends: 5% (when distributed by companies listed on the Egyptian stock exchange)/10%,
  • Interest: 0 (residents)/ 0 (interests paid on Treasury bills and bonds)/20% (non-residents),
  • Royalties: 3% (residents)/20% (non-residents)

The rates may be reduced under an applicable tax treaty.

Bilateral Agreement
The United Kingdom and Egypt are bound by a double taxation treaty.

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Latest Update: June 2022

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