Egypt at Glance
Egypt is one of the biggest countries in Africa and Middle East. Over 7000 years, Egypt considered on of the most important trading and business centers. The following are some glance information for potential investors:
Population: 104m people.
Space: 1000 km square.
Capital: Cairo (20m people).
Incorporation under Companies Law No.151 (1981).
Registration with the General Authority for Investment (GAFI) is required.
New Investment Law no.72 for year 2017 has been taken in place.
5 Public Free-Zones subject to 1% dues.
Financial Year
Each company can choose their financial year as they please, provided that it is 12 months.
Currency
Egyptian pound (EGP)
Corporate Tax
Corporate Tax Rate:
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Corporate Income Tax Rate 22.50%
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Dividends income 2.25%
Net Operating Losses (Years)
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Carry-back: N/A
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Carry-forward: 5 years
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Withholding Tax Rate:
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Dividends payable - Non-listed: 10%
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Dividends payable - Listed: 5%
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Payments to non-residents: 20%
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Purchases and construction: 1%
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Services: 3%
Real Estate Transactions Tax:
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RE Transaction tax on contract value: 2.5%
Capital Gains
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Rate (After netting with capital loss) 22.5%
Income Tax
Payroll tax is based on the annual income, then bracket taxes applies:
Annual income exemption is EGP 9,000 and will increase to EGP 35,000 by FY23.
Social insurance
Employer rate: 18.75%
Employee rate: 11%
Residency
Individuals– An individual is a resident in Egypt if any of the following conditions are met:
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Has permanent residence in Egypt
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Resided in Egypt for 183 consecutive or non-consecutive days within a 12-month period
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Egyptian national working abroad and paid from an Egyptian source
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Basis of Taxation – Total net income realised in Egypt, or abroad if Egypt is the center of their operations, and non-residents on their income realised in Egypt.
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Legal Entity– An entity is resident in Egypt if any of the following conditions are met:
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Established in accordance with Egyptian Law
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Headquartered in Egypt, either formally or practically
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More than 50% owned by the state, or a state owned entity
Basis of Taxation – Net income from all commercial and industrial activities realised in Egypt or through subsidiaries abroad, including income from the sale of assets, reparations, securities, and liquidation proceedings.
Taxable Income
Net income from all commercial and industrial activities realized in Egypt or through subsidiaries abroad, including income from the sale of assets, reparations, securities, and liquidation proceedings.
Tax Return due dates
Value Added Tax (VAT)
Stamp duty & Land Tax
Land Tax:
Transaction tax on individuals not companies: 2.5%
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Stamp duty Tax:
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:
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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.
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An annual proportional stamp tax is imposed on a bank’s loans at the rate of 0.4%, shared by the bank and the client. This stamp tax is due on a quarterly basis on the beginning balance of each quarter of credit facilities and loans and advances provided by Egyptian banks or branches of foreign banks during the financial year in addition to the amounts utilised within the quarter. Loans from other establishments are not subject to this tax.
