Corporate tax
Tax rate for resident companies |
Companies are subjected to a tax on profits at the rate of 40%. This rate has been reduced to 32% for industrial companies and profits made through export operations.
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Taxe rate on long-term capital gains |
Capital gains are included in taxable income.
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System governing groups of companies and dividends paid by subsidiaries to their parent companies |
Foreign dividends are subjected to a withholding tax at the rate of 32% while dividends paid by an Egyptian company are not.
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Tax rate on branches |
Branches are subjected to the corporate tax as all the other companies.
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Income tax
Fiscal year |
The fiscal year begins on January 1-st and ends on December 31 of the same year.
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Income tax rate |
The progressive rate of the individual income tax varies between 5% and 25% according to the tax bracket.
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Tax deductions or
other allowances |
Deductions:
2,000 Egyptian pounds for single people.
2,500 Egyptian pounds for childless married peaple.
2,500 Egyptian pounds for unmarried couple having at least a dependent child.
3,000 Egyptian pounds for married people having at least a dependent child.
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VAT rates
Standard rates |
The General Sales Tax (GST) applies to the sale of all industrial products. The GST rate is 10%, except for some products where the rate is 25%.
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Reduced rates |
Services are taxed at either 5% or 10%, depending on their type.
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Other important taxes
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Name of tax |
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Land taxes
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10 to 40%
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Stamp duties
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100 - 600 Egyptian pounds
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Accounting
Introduction
The egyptian law doesn't determine all the principles of accounting and audit.
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Obligations and publications
According to the law, all the companies have to present to the shareholders during their annual meeting : an audit report, a balance sheet, a profit and loss account and the statement of the cash flows.
Certification and auditing
All the accounts and reports are susceptible to be checked by governmental authorities as the tax department or companies department of the ministry of the economy and the foreign trade.
Professionals and representative organizations
The main representative body of bookkeepers and auditors is the " the Egyptian Association of Accountant and Auditors ". There are 7,000 to 8,000 auditors registered in Egypt.
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Export Entreprises SA ©, All rights reserved
Last modified in
January 2003
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