Egipte flag Egipte: Entorn econòmic

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
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.
The excise tax is solely applied on specifically listed items while it could be applicable in addition to the normal 14% VAT on some other items (e.g. air conditioners, vegetable oils, petroleum products, fertilizers, etc.).
 
Find out more about Taxes and Accounting in Egypt on GlobalTrade.net, the Directory for International Trade Service Providers.
 

Return to top

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. The suspension of tax on the sales of listed shares, was extended until the end of 2021.
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. Debit interest of loans and overdrafts are deductible.
Generally, losses can be carried forward for maximum 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. A residential property is tax exempt if 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 2021 minimum and maximum monthly salary caps are EGP 1,200 and EGP 8,100, respectively.

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). This proportional stamp tax has been extended to sell-offs and buyouts involving at least 33% of shares or 33% of assets/liabilities of resident companies. Transactions that fall under the purview of the new Investment Law are exempt from stamp tax for five years. Finally, 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.

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
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.

Return to top

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.

Return to top

Double Taxation Treaties

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

The rates might 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.

Return to top

Find out more about Taxes and Accounting in Egypt on GlobalTrade.net, the Directory for International Trade Service Providers.

Return to top

Vols fer algun comentari sobre aquest contingut? Escriu-nos.

 

© Export Entreprises SA, Tots els drets reservats.
Actualitzacions: May 2022

Return to top