Verified Facts
The tax rates in Egypt range from 10% to 25% for personal income tax, with a corporate tax rate of 18%, and a standard Value-Added Tax (VAT) rate of 14%.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Egypt has a territorial tax system, which means that individuals and companies are taxed on their income earned within Egypt, regardless of their residence status. However, Egyptian residents are also subject to tax on their worldwide income, with certain exemptions and deductions available. The residency rules for tax purposes in Egypt are based on the 183-day rule, which states that an individual is considered a resident if they spend more than 183 days in Egypt in a calendar year.
The tax system in Egypt is administered by the Egyptian Tax Authority, which is responsible for collecting taxes, enforcing tax laws, and providing tax services to individuals and companies. The tax authority has implemented various measures to improve tax compliance and reduce tax evasion, including the introduction of electronic tax filing and payment systems. Egypt has also signed double taxation treaties with many countries to avoid taxing the same income twice and to provide relief to taxpayers.
Personal Income Tax
| Income Bracket (EGP) | Tax Rate |
|---|---|
| 0 - 15,000 | 10% |
| 15,001 - 30,000 | 15% |
| 30,001 - 45,000 | 20% |
| 45,001 - 60,000 | 22% |
| 60,001 and above | 25% |
| The personal income tax rates in Egypt are progressive, with higher income earners paying a higher tax rate. Individuals are entitled to deductions and allowances, such as a personal exemption of EGP 9,000, and deductions for charitable donations and mortgage interest. Taxpayers are required to file their tax returns by the end of April each year, and can do so electronically or through a tax agent. |
Corporate & Business Tax
- The corporate tax rate in Egypt is 18%, which applies to companies' taxable profits.
- Small businesses with an annual turnover of less than EGP 1 million are eligible for a reduced tax rate of 1%.
- Companies operating in free zones are exempt from income tax for a period of 10 years, and are also exempt from customs duties and VAT.
- Companies are required to register with the Egyptian Tax Authority and obtain a tax identification number before commencing business operations.
- Companies are also required to file their tax returns and pay their taxes on a quarterly basis.
VAT / Sales Tax
- The standard VAT rate in Egypt is 14%, which applies to most goods and services.
- A reduced VAT rate of 5% applies to certain goods and services, such as food and pharmaceuticals.
- Certain goods and services, such as basic food items and health services, are exempt from VAT.
- Tourists are eligible for a tourist refund scheme, which allows them to claim a refund of VAT paid on certain goods and services.
For Expats & Foreign Workers
- Tax residency rules in Egypt are based on the 183-day rule, which means that expats who spend more than 183 days in Egypt in a calendar year are considered residents for tax purposes.
- Egypt has double taxation treaties with many countries, which provide relief to taxpayers who are subject to tax in both Egypt and their home country.
- Expats are required to register with the Egyptian Tax Authority and obtain a tax identification number in order to file their tax returns and claim any tax refunds.
- Expats are also required to comply with social security regulations, which include making contributions to the Egyptian social security system.
- Expats who are non-resident in Egypt are subject to a withholding tax of 20% on their Egyptian-sourced income.
- Expats who are resident in Egypt are required to file their tax returns and pay their taxes on a quarterly basis.
Crypto & Investment Income
- Investment income, such as dividends and interest, is subject to a withholding tax of 10%.
- Capital gains tax is included in income tax, and is subject to the same tax rates as personal income tax.
- Cryptocurrency is subject to capital gains tax, and is considered a capital asset for tax purposes.
- Taxpayers are required to declare their cryptocurrency holdings on their tax returns, and to pay tax on any gains realized from the sale of cryptocurrency.