Egypt Tax System: A Guide for Foreign Investors (2025)

1. Corporate Income Tax (CIT):

• Standard Rate:
  • The standard CIT rate in Egypt is generally a specific percentage. It is very important to verify the exact current rate with the Egyptian Tax Authority (ETA), as it can change.  
• Tax Incentives:
  • Egypt offers various tax incentives for investments in strategic sectors and specific regions.  
  • These incentives may include tax exemptions, reduced tax rates, and accelerated depreciation.  
  • The Investment Law No. 72 of 2017 outlines many of these incentives.  
• Transfer Pricing:
  • Egypt has implemented transfer pricing regulations based on OECD guidelines.  
  • Multinational companies operating in Egypt must comply with these regulations.  




2. Value Added Tax (VAT):

• Standard Rate:
  • The standard VAT rate is a set percentage. It is very important to verify the exact current rate with the Egyptian Tax Authority (ETA).  
• Zero-Rated and Exempt Supplies:
  • Certain goods and services are zero-rated or exempt from VAT.  
  • Examples include exports and essential goods.  
• E-Invoicing and E-Receipts:
  • The Egyptian Tax Authority (ETA) is pushing for the implementation of e-invoicing and e-receipt systems. This is a very important development.  
• VAT Refunds:
  • Businesses can claim VAT refunds for eligible expenses.  




3. Personal Income Tax (PIT):

• Progressive Rates:
  • Egypt has a progressive PIT system, with tax rates increasing based on income levels.
   
• Tax Residency:
  • Tax residency is determined by factors such as the length of stay and the location of income sources.




4. Real Estate Tax:

• Real estate tax is levied on properties in Egypt.  
• The tax rate and valuation methods vary depending on the location and type of property.  




5. Customs Duties:

• Customs duties are levied on imported goods.  
• Egypt is working to streamline customs procedures and reduce trade barriers.  




6. Tax Treaties:

• Egypt has an expanding network of double taxation treaties, which helps to avoid double taxation for foreign investors.  
• These treaties provide clarity on tax obligations and reduce tax burdens.




7. Tax Administration:

• Egyptian Tax Authority (ETA):
  • The ETA is responsible for administering and enforcing tax laws.  
  • The ETA is working to modernize its operations and improve taxpayer services.
• Digitalization:
  • Egypt is pushing to digitalize its tax system.  
  • Key Considerations for Foreign Investors:
• Tax Planning:
  • Engage in proactive tax planning to optimize your tax position.
• Compliance:
  • Ensure compliance with all tax laws and regulations.
• Documentation:
  • Maintain accurate and complete records of all financial transactions.
• Professional Advice:
  • Seek professional tax advice from experts in Egypt.
• Stay Updated:
  • It is very important to stay up to date with any and all changes to the tax laws.