Egypt Tax News 2025
March 2025Egypt Tax News: Key Updates for Foreign Investors (2025)
Egypt's tax landscape is evolving, and it's essential for foreign investors to stay informed.
Here's a breakdown of the key developments and areas of focus for 2025:
1. Unified Tax Procedures Law:
- Ongoing Implementation: The Unified Tax Procedures Law continues to be implemented, aiming to streamline and modernize tax administration.
- Digitalization: The Egyptian Tax Authority (ETA) is pushing for increased digitalization of tax processes, including e-filing and e-invoicing. Investors should ensure they are adapting to these changes.
- Compliance Focus: Expect increased scrutiny and enforcement actions to improve tax compliance.
2. Corporate Income Tax (CIT) Updates:
- Potential Adjustments: While the current CIT rate is generally stable, investors should remain aware of potential adjustments or changes to regulations.
- Investment Incentives: The Egyptian government continues to offer investment incentives for strategic sectors. It is very important to check for the most up to date information regarding these incentives.
- Transfer Pricing: Transfer pricing regulations are becoming increasingly important, especially for multinational companies operating in Egypt. Investors must ensure they have proper documentation in place.
3. Value Added Tax (VAT) Updates:
- Expanded Scope: The VAT regime may see further expansion or adjustments to the scope of taxable goods and services.
- E-Invoicing and E-Receipts: The implementation of e-invoicing and e-receipts is being strongly pushed. Investors must ensure that they are in compliance with these new systems.
- Refund Procedures: The ETA is working to improve VAT refund procedures, which is beneficial for export-oriented businesses.
4. Customs Updates:
- Trade Facilitation: Egypt is working to streamline customs procedures to facilitate international trade.
- Digitalization: Customs processes are being increasingly digitalized, with the introduction of electronic customs declarations.
- Free Zones: The rules regarding free zones are constantly being updated, and therefore it is very important to keep up to date with any changes.
5. Tax Treaties:
- Expansion of Network: Egypt continues to expand its network of double taxation treaties, which helps to avoid double taxation for foreign investors.
- Review of Existing Treaties: Investors should be aware of potential reviews or updates to existing tax treaties.
Key Recommendations for Foreign Investors:
- Engage with Tax Professionals: Seek expert advice from qualified tax advisors in Egypt.
- Stay Updated with ETA Publications: Regularly review the ETA's website and publications for the latest updates.
- Maintain Accurate Records: Ensure meticulous record-keeping for all financial transactions.
- Embrace Digitalization: Adapt to the increasing digitalization of tax processes.
- Compliance: Compliance with the egyptian tax laws is very important.
Egypt New taxes passed
July 2023Egypt’s parliament has approved a new package of tax reforms aimed at increasing revenues.
Egypt’s parliament passed a package of tax reforms including a new tax on entertainment, hikes in government fees, and an increase in the threshold for taxable personal income
Egypt New V.A.T Law
October 2016Starting September 8, 2016 there is a new V.A.T. law in Egypt replacing the sales tax which was in effect since 1991.
The standard V.A.T rate on supply of goods and services is 13%. There are also reduced rates of 5% and 10% for certain goods and services and an upper 20% rate on certain products, e.g. cars and electric goods. The standard V.A.T. rate will rise to 14% starting July 1, 2017.
Egypt Mauritius Double Tax Treaty
March 2015The 2012 double tax treaty, DTA, between the two countries entered into force on March 10,2014 applying from January 1, 2015 in Egypt and July 1, 2015 in Mauritius. The tax withholding rates for dividends are 10% or 5% when the recipient holds 25% or more of the paying company. The rate for interest is 10% and 12% for royalties.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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