Impostos a Egipte

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)

Tax Rate

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.