Tax rates in Egypt

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.
Capital gains realised from shares invested abroad are subject to a 22.5% capital gains tax, with a credit for the foreign tax paid.

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 the head office made by a branch.
Subject to conditions, interest expenses are deductible for tax purposes after offsetting any tax-exempt interest income.
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's share of it being 18.75%. The 2023 minimum and maximum monthly salary caps are EGP 1,700 and EGP 10,900, 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 1 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 non-resident 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.

Other Domestic Resources

MOF - Egyptian Tax Authority, (in Arabic)

Tax Rate

Allowable Deductions and Tax Credits

Available tax deductions include a personal deduction of EGP 15,000 annually (in addition to the first EGP 21,000 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 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 12-month period; 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.