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Impostos a Egipte

Tax Rates

Consumption Taxes

Nature of the Tax
Value-added tax (VAT)
Tax Rate
The standard VAT rate is 14%.
Reduced Tax Rate
A 5% reduced VAT rate applies to machinery and equipment used in manufacturing and service provision to the service sector. Tax payment on such machinery and equipment is suspended, whether imported or purchased locally for factories and production units. The same suspension applies to imported machinery and equipment for trading, provided documentation confirms their use in manufacturing. However, if the purpose of machinery usage or production units cannot be proven, a 14% rate applies.
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 tea, sugar, and coffee; banking services; medicines and active substances authorized by the Egyptian Medicines Authority; healthcare services; production, transfer, sale, or distribution of electric current; education, training, and research services; sale and rental of land, residential, and nonresidential buildings; free services broadcasted through radio and television.

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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
The standard capital gains tax rate is 22.5%. However, resident companies pay a reduced 10% rate on gains from selling shares listed on the Egyptian stock exchange. Nonresident companies are exempt from tax on gains from selling shares on the Egyptian stock exchange or disposing of treasury bills. Capital gains tax does not apply to gains from share swaps involving listed and unlisted companies that deposit their shares with a central depository. Gains from unlisted securities in Egyptian companies are taxed at the standard corporate rate for both residents and nonresidents. Nonresidents may seek tax relief under a relevant treaty by filing a form with the International Tax Department of the Egyptian Tax Authority (ETA) for pre-approval. Nonresidents must file their capital gains tax returns within 60 days of the transaction.
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.
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. A branch can deduct head-office charges up to 10% of its taxable income. Additionally, the branch or subsidiary must withhold taxes on payments of interest, royalties, and service fees to non-resident foreign corporations or affiliates.
Financial fines and penalties paid by the taxpayer for deliberate felonies or misdemeanors are not deductible. Income tax payable is also not deductible. Additionally, reserves, appropriations, distributed dividends, attendance fees for general assembly meetings, compensation and allowances for chairmen and board members, and workers' profit shares mandated by law are non-deductible items.
A company can carry losses forward for up to five years. However, if there is a change in ownership exceeding 50% of shares or voting rights in a joint-stock company or a company limited by shares not listed on the Egyptian Stock Exchange, and the company changes its activity, it cannot carry the losses forward. Generally, companies cannot carry losses back, except contracting companies, which can carry back losses for an unlimited period, matching the contract duration.
Other Corporate Taxes
Most real property in Egypt is subject to a real estate tax. A 10% rate is applied to the annual rental value after a 32% deduction for nonresidential property costs and a 30% deduction for residential property costs. Exemptions are available for nonresidential property used for commercial, industrial, or administrative purposes with an annual rental value under EGP 1,200, and for residential units with an annual rental value under EGP 24,000. The property user pays the tax in two installments. The annual rental value is reassessed every five years.

Under the unified social insurance and pension law, the contribution rate is 29.75%, with the employee contributing 11% and the employer 18.75%. For 2024, the monthly salary caps are EGP 2,000 (minimum) and EGP 12,600 (maximum). Allowances for transportation, travel, meals, and accommodation can be excluded from the salary cap if they do not exceed 25% of the contribution salary.

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 rates on insurance premiums are as follows: 1% on each life insurance premium, 2% on premiums for illnesses, bodily injuries, related civil liability, and compulsory insurance. An 11% tax applies to insurance for land, river, sea, and air transport (minimum one pound). Other insurance premiums, including war risk insurance, are also taxed at 11%, with a minimum of one pound.

Stamp tax is applied to the total value of trading in securities (Egyptian or foreign, listed or unlisted), excluding public treasury bills and bonds, with no deductions for expenses. The rates are 0.125% for nonresident buyers and sellers, and 0.05% for resident buyers and sellers. A higher rate of 0.3% applies to both buyer and seller for sales or acquisitions of at least 33% of a resident company's shares or voting rights, or assets or liabilities by another resident company in exchange for shares. If multiple transactions by one entity exceed the 33% threshold within two years, the 0.3% rate applies to the total transaction amount, allowing offsets for previously paid stamp tax. Stamp tax does not apply to same-day securities transactions.

Other Domestic Resources
MOF - Egyptian Tax Authority, (in Arabic)

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 40,000 0%
From EGP 40,001 to 55,000 10%
From EGP 55,001 to 70,000 15%
From EGP 70,001 to 200,000 20%
From EGP 200,000 to 400,000 22.5%
From EGP 400,000 to 1,200,000 25%
Above EGP 1,200,000 27.5%
Annual taxable income determines the applicable tax brackets, with higher incomes ineligible for lower tax rates, as outlined below:
• Income up to EGP 600,000 falls within all tax brackets except the 27.5% rate.
• Income between EGP 600,000 and EGP 700,000 excludes the 0% rate. The first EGP 45,000 is taxed at 10%, with the remainder following subsequent brackets.
• Income between EGP 700,000 and EGP 800,000 excludes the 0% and 10% rates. The first EGP 60,000 is taxed at 15%, with the remainder following subsequent brackets.
• Income between EGP 800,000 and EGP 900,000 excludes the 0%, 10%, and 15% rates. The first EGP 200,000 is taxed at 20%, with the remainder following subsequent brackets.
• Income between EGP 900,000 and EGP 1.2 million excludes the 0%, 10%, 15%, and 20% rates. The first EGP 400,000 is taxed at 22.5%, with the remainder following subsequent brackets.
• Income exceeding EGP 1.2 million excludes the 0%, 10%, 15%, 20%, and 22.5% rates. The first EGP 1.2 million is taxed at 25%, with the remainder at 27.5%.
Allowable Deductions and Tax Credits
Available tax deductions include a personal deduction of EGP 20,000 annually (in addition to the first EGP 40,000 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.

All business expenses are deductible if they are related to the commercial or industrial activities of the establishment and essential for conducting those activities. Additionally, expenses must be verifiable with supporting documentation, such as electronic invoices and receipts, except for those not typically documented. Electronic invoices become mandatory starting July 2023, and electronic receipts starting January 2025.
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.

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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: interest paid to residents isn't typically subject to withholding tax, except for interest on treasury bills and bonds, which incurs a 20% withholding tax. Residents earning interest from investment funds under Egypt’s Capital Market Law face withholding tax at 15% for companies and 5% for individuals. Nonresident interest payments are subject to a 20% withholding tax, unless reduced by a tax treaty. However, treaty benefits aren't directly applicable; the domestic rate is initially applied. Recipients can later seek a tax refund for excess withholding tax by filing with the ETA. Treaty benefits can be applied upon payment if the recipient obtains an advance ruling request (ARR) from the ETA.
  • Royalties: 3% (residents)/20% (non-residents)

The rates may be reduced under an applicable tax treaty.

Bilateral Agreement
Egypt and Spain are bound by a Double Taxation Agreement in order to avoid fiscal evasion and double taxation on income and on fortune. It was signed on June 10, 2005.
Dividends paid to nonresidents are not subject to withholding tax under Egyptian domestic law.
Withholding tax rates under the tax treaty are: 10% for interest and 12% for royalties.
Download the treaty in Spanish.

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Sources of Fiscal Information

Tax Authorities
Egyptian Tax Authority
Other Domestic Resources
General Authority for Investment and Trade Zones

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Actualitzacions: July 2024

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