Tax in Egypt

Who is the tax authority?

The Egyptian Tax Authority (ETA), known in Arabic as Maslahet El Daraeb El Masreya, runs Egypt's tax system. It sits under the Ministry of Finance and operates through specialised offices for investments, wages, free professions, and regional taxpayer categories.

The Egyptian Customs Authority handles customs duties and import VAT. Tax disputes move through ETA's Internal Committee, then Tax Appeals Committees (Lijan El-Tazallumat), and finally the Court of Appeal and Court of Cassation on questions of law.

The principal credentialed profession is the Public Accountant (Muhasib Qanuni), registered with the Egyptian Society of Accountants and Auditors (ESAA) under Law No. 133 of 1951. The Egyptian Bar Association regulates lawyers for tax-controversy representation.

What is the tax year and when are returns due?

The individual tax year is the calendar year (1 January to 31 December). Personal income tax returns (Form 28) are due 31 March of the following year for natural persons with non-employment income. Salary earners have tax fully withheld monthly by employers, with an annual reconciliation performed in January — most salaried employees need not file individually.

Corporate fiscal years may align with the calendar year or a different 12-month period. Corporate annual returns are due within four months from the end of the fiscal year — 30 April for calendar-year filers.

Who counts as an Egyptian tax resident?

An individual is a tax resident in Egypt under Article 2 of the Income Tax Law if any one of three tests is met. First, maintaining a permanent home in Egypt. Second, physical presence in Egypt for 183 days or more during any 12-month period. Third, being an Egyptian citizen working abroad whose compensation is paid by an Egyptian-based source — this third leg creates a broad diaspora attachment for Egyptian nationals.

Residents are taxed on worldwide income, with foreign-tax credits available under Article 54. Non-residents are taxed only on Egyptian-source income at flat withholding rates: 10% on dividends, 20% on royalties, and 20% on interest (treaty rates apply).

Foreign nationals working in Egypt on long-term assignments routinely meet the 183-day test from year one. Treaty tie-breakers under the OECD Model framework apply for dual-resident cases.

What are the personal income tax rates?

Egypt uses seven income tax brackets for 2024:

A personal exemption of EGP 20,000 plus a EGP 15,000 family allowance for dependants reduces taxable income. Capital gains on listed shares from the Egyptian Exchange (EGX) are taxed at 10%. Real-estate transfers face a 2.5% flat tax on gross transaction value regardless of gain.

Deep-dive: see self-employed tax in Egypt for how PIT and social charges stack up for freelancers.

How does corporate tax work?

Egypt's standard corporate income tax (CIT) rate is 22.5% on taxable income. Several sectors face different rates.

Withholding tax on dividends paid to non-residents is 10% (treaty rates apply). Royalties and technical services: 20% default. Tax losses carry forward for five years; no carryback. Pillar Two global minimum tax has not yet been transposed into Egyptian law as of mid-2026.

Deep-dive: see small business tax in Egypt for sole-trader vs incorporated comparison and SME reduced-rate eligibility.

What about VAT and indirect taxes?

Egypt's Value Added Tax is governed by VAT Law No. 67 of 2016, which replaced the 1991 General Sales Tax.

VAT registration is mandatory once annual turnover exceeds EGP 500,000. Schedule Tax (excise duty) applies on alcohol, tobacco, and beverages — combined VAT plus Schedule Tax can exceed 50% on some excisable items.

E-invoicing (e-invoice for B2B and e-Receipt for B2C) has been progressively rolled out since 2020. By late 2024, all VAT-registered businesses were subject to mandatory e-invoicing. Cross-border digital services from non-resident suppliers fall under a reverse-charge mechanism via Decree 24/2023, requiring simplified vendor registration once Egyptian customers exceed EGP thresholds.

Deep-dive: see VAT and indirect tax in Egypt for the full e-invoicing mechanics.

How are cryptoassets treated?

Egypt takes a restrictive position on cryptoassets. Banking Law No. 194 of 2020 (Article 206) prohibits the issuance and trading of cryptoassets without Central Bank of Egypt (CBE) licensing, with criminal sanctions for unauthorised activity.

Deep-dive: see crypto taxation in Egypt for how the CBE framework intersects with ETA reporting in practice.

What is the treaty network?

Egypt has approximately 60 active bilateral double tax treaties — one of the largest networks in Africa and the Arab world. The US–Egypt treaty, in force since 1980/1981, is the headline agreement, reducing withholding on cross-border dividends, interest, and royalties.

Egypt has not yet ratified the OECD Multilateral Instrument (MLI) as of mid-2026 — treaty modifications flow via bilateral protocols. Egypt is a member of the Arab League Multilateral Tax Convention, providing regional coordination. Egypt is a CRS adopter under the Multilateral Competent Authority Agreement signed in 2018, with first exchanges in 2019.

Deep-dive: see tax treaty relief in Egypt for bilateral rate schedules.

Where does Egypt sit in the North Africa cohort?

Egypt anchors the North Africa / Arab income-tax cohort as the region's most populous nation and largest Arab economy. The North Africa region spans five distinct tax archetypes:

The Suez Canal: Egypt's strategic economic anchor

The Suez Canal Authority (SCA) is one of Egypt's largest revenue sources. The canal earned approximately USD 9.4 billion in transit fees in fiscal year 2022/2023 before disruptions from Houthi-related Red Sea tensions reduced revenues in 2024.

The Suez Canal Economic Zone (SCZONE) around the canal corridor has its own Investment Law No. 72 of 2017 incentive framework, offering tax holidays of up to 10 years for qualifying projects. SCZONE and SCA represent different legal entities with different rate treatments.

EGP devaluation and IMF programme: what it means for tax compliance

The Egyptian Pound depreciated roughly 300% against the US Dollar between 2022 and 2024 — moving from approximately EGP 16/USD to EGP 50/USD at peak devaluation. This shift had direct compliance consequences.

FX exposure also affects transfer-pricing computations, FX-denominated intercompany loans, and the EGP equivalent of non-resident dividend withholding. Businesses denominating contracts in USD or EUR and reporting in EGP carry persistent translation risk in their Egyptian CIT base.

Egypt as a regional anchor: largest Arab economy

With approximately 110 million people, Egypt is the most populous Arab nation and the largest Arab economy by GDP. Its economic base spans Suez Canal revenues, tourism, remittances from a large diaspora, manufacturing, agriculture, and hydrocarbons.

The large remittance economy (diaspora in Saudi Arabia, UAE, USA, Italy, and other treaty partners) creates substantial cross-border income flows that intersect with the Egyptian worldwide-income residency test and treaty relief frameworks.

Common pitfalls for foreign operators and investors

Foreign companies and individuals trip on a handful of recurring traps when operating in Egypt:

When should you talk to an Egyptian tax pro?

Some situations are straightforward enough for standard ETA online tools. Others carry enough complexity to warrant qualified Egyptian tax-professional input:

Specific situations where a qualified practitioner adds the most value:

• Income crosses the 25% or 27.5% PIT bracket (above EGP 400,000 or EGP 1,200,000)
• Cross-border employment — diaspora earnings, 183-day test, or Egyptian-payroll third-leg residency
• Oil and gas sector — the 40.55% rate and petroleum-framework compliance
• Suez Canal or SCZONE — dedicated rate framework and investment incentive eligibility
• Transfer pricing — intercompany transactions, master-file, local-file, and CbCR under the 2023 rules
• ETA notice of assessment, audit letter, or Mokhalasa clearance required
• Real-estate acquisition or disposal — 2.5% gross-basis transfer tax and EGX-listed share capital gains rules
• IMF-period FX translation — EGP devaluation impacts on EGP-denominated assets and cross-border contracts

You can find verified Egyptian practitioners through the directory below.

This page is general information about Egyptian tax rules. It is not personal guidance for your specific situation. Tax rules change. Always check current figures on the ETA website or with a licensed Egyptian practitioner before filing.