Egypt

Egypt - Islamic Law
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Egypt taxes

If you want to do business in Egypyt, this article explains the tax laws for a LLC which is the most common legal entity in Egypt.

Egypt taxes resident companies on their worldwide income. The prevailing approximate tax for offshore income, from our research, and this is not personal tax advice, is 22.5%. Foreign tax paid may be deductible, but may not exceed the total tax payable in Egypt. Taxes are reasonable in Egypt as the highest corporation tax rate is 22.5%. This ranks Egypt as 95th overall in terms of corp. taxation rate internationally.

The value added tax (VAT) rate in EG is 13%, that ranks Egypt as 78th overall with regards to VAT taxation rate internationally. In terms of other taxation, an employer will contribute 26% to the equivalent of a social security fund and an employee will contribute 14%. The overall complexity of the tax system is high. This is measured by average time to comply with a country's labor tax requirements is as it is 165 hours. Contributing to this is the number of yearly labor tax payments, which is 12 in EG.

Thin capitalization restrictions are officially enacted. Thin capitalisation refers to any type of requirements on given company with respect todebt-to-asset ratios.
Dividends paid to resident companies are subject to 10% withholding tax. Tax may be reduced to 5%, if a participation exemption apply: resident company holds at least 25% of shares of the subsidiary and holds or comitts to hold such participation for two years. Dividends received from resident entities are not taxable. Those received from foreign subsidiaries are subject to CIT, but they may be 90% exempt, if the aforementioned participation exemption apply. Dividends are payments of a company profit, decided by the board, to a particular class of shareholders. Dividends can be either cash payments, shares of stock, or other property.
Capital Gains are subject to Corporate Income Tax. However, those obtained from the disposable of shares listed on the Egypt Stock Market are taxed at a reduced CIT of 10%. A capital gains tax is levied on the profits that a corporation or natural person realizes when they sell sells a capital asset for a price that is higher than the purchase price.

The interest withholding tax rate is estimated at 20%. This should be interpreted usually that the tax authorities expects LLC's to automatically withhold 20% of money remitted abroad on interest payments. The dividends withholding tax rate is 10%. Which means that the relevant tax authorities expects LLC's to withhold 10% of dividend payments to non-residents, unless tax is reduced to 5%, if participation exemption apply. The royalties withholding tax rate 20%. This should be interpreted usually that the tax authorities expects relevant legal entities to pay tax on at least 20% of money remitted abroad on royalty payments. Withholding taxes may be reduced under a tax treaty.
There is no known tax on wealth in Egypt. There is an inmovable asset tax. There are no known inheritance and transfer taxes in Egypt. We are aware of frequently implemented R&D initiatives that provide tax relief in this country.

The above is not tax or legal advice for your individual facts and circumstances. We can to help you find to a lawyer in Egypt who will advise you. Want to work together? Click the free consultation button above.

It takes approximately 69 hours to file and prepare documents for a Egypt Islamic Law.
The corporate tax is approximately 22.5% which is 96 in the world.

Owners of a company in Egypt are not allowed to carry back a loss and may be allowed to carry forward a loss for 5 years.

The vat rate in Egypt is 14% which ranks 76 in the world.

Patent box
RND credit
Wealth tax
Estate tax
Transfer taxes
Asset taxes
Capital duties
43Tax treaties
22.5%Offshore Tax
22.5%Corp rate
-Loss carryback years
69Corporate time
14%VAT rate
22.5%Capital gains
NoAEOI planned

Read this to learn about incorporating a company in
Egypt

We can help you form a company in Egypt. Click the button above for a no-obligation quote. We will provide you with all the necessary documents to open a bank account as well as a registered office in Egypt, which is required by law.

Egypt Tax Treaties

CountryTypeDate signed
Sweden
DTC 1994-12-26
Italy
DTC 1979-05-07
Slovenia
DTC 2009-12-15
Cyprus
DTC 1993-12-18
United Kingdom
DTC 1977-05-25
India
DTC 1969-02-20
Ireland
DTC 2012-04-09
Malaysia
DTC 1997-04-14
Finland
DTC 1965-04-01
Turkey
DTC 1993-12-25
Slovakia
DTC 2004-01-20
Macedonia
DTC 1999-11-22
Greece
DTC 2004-11-27
Poland
DTC 1996-06-24
Ukraine
DTC 1997-03-29
Denmark
DTC 1989-02-09
United States
DTC 1980-08-24
China
DTC 1997-08-13
Norway
DTC 1964-10-20
Lebanon
DTC 1996-03-17
Indonesia
DTC 1998-05-13
South Korea
DTC 1992-12-09
South Africa
DTC 1997-08-26
Malta
DTC 1999-02-20
Romania
DTC 1979-07-13
Japan DTC 1968-09-03
Singapore
DTC 1996-05-22
Canada
DTC 1983-05-30
Georgia
DTC 2010-05-25
Albania
DTC 2005-02-23
Spain
DTC 2005-06-10
Russia
DTC 1997-09-23
Switzerland
DTC 1987-05-20
Hungary
DTC 1991-11-05
Germany
DTC 1987-12-08
Pakistan
DTC 1995-12-16
Belgium
DTC 1991-01-03
United Arab Emirates
DTC 1994-12-04
Tunisia
DTC 1989-12-08
Netherlands
DTC 1999-04-21
Morocco
DTC 1989-03-22
France
DTC 1999-05-01
Austria
DTC 1962-10-16

Country Info

National Flag of
جمهورية مصر العربية (ara)
Currency
EGP
Area Code
+20
Capital
Cairo
Region
Northern Africa
Native Languages
Arabic