Egypt Income Tax Rate for Financial Year 2017-2018 for Individuals, Professionals, Non Residents and Corporate / Companies.
Egypt Personal Income Tax Rate for 2017 and Deductions
|Earned Income (EGP)||Tax Rate||Tax Credit|
|7,201 to 30,000||10%||80%|
|30,001 to 45,000||15%||40%|
|45,001 to 200,000||20%||5%|
|On Amounts received by entities other than their original employers||10%|
In Egypt residents are taxed on worldwide income but non residents are taxed only on Egypt sourced income.
Egypt Personal Income Tax for Non Residents
The above-mentioned brackets also apply to non-residents on the income they receive from an Egyptian treasury or against work performed in Egypt.
Annual Salary Tax Exemption
EGP 7,000 for both residents and non-residents.
- Personal deduction of EGP 7,200 annually
- Social insurance contributions
- Employees' contributions to private insurance funds
- Premiums for life and health insurance for self or dependents
- General costs (rent, depreciation, social insurance contributions etc.)
Capital Gain Tax in Egypt
|Transaction Type||Tax Rate|
|Tax on value of property sold in case of sale of Real Estate in Egyptian cities||2.5%|
|Gains from the sale of shares listed on the Egyptian stock exchange||10%|
|Gains from unlisted shares are included in ordinary income||22.5%|
|Capital gains derived from the sales of securities realized by nonresident juridical persons||10%|
Withholding Tax Rate in Egypt
- 5% / 10% on Dividends
- 20% on Interest
- 20% on Royalties
Corporate Tax in Egypt for 2017-2018
|Corporate Income Tax||22.50%|
|Tax on the profits of Suez Canal Company, Egyptian General Petroleum Company and the Central Bank of Egypt||40%|
|Tax on the profits of oil prospecting and production companies||40.55%|
Tax Rate on Foreign Companies
Foreign Companies are Taxed at same rate as Egyptian Companies
Allowable deductions and Tax Credit
- Foreign tax credit up to the total tax payable in Egypt is available.
- Branch expenses other than overhead and general administration expenses are generally fully deductible, with the branch's share of head office overhead expenses further deductible at 3-5% turnover.
- Debit interest of loans and overdrafts are deductible.
- Provisions are only treated as deductible costs if they fall within 80% of loan provisions made by banks or they are qualifying provisions by insurance companies.
- Others deductions: bad debt, depreciation and amortization and a percentage of real estate value.
Other Corporate Taxes in Egypt
A tax on real-estate assets at 10% of rental value was introduced in June 2008.
- 30% deduction on the taxable base is allowed to cover related maintenance costs for residential property
- 32% deduction for nonresidential property.
- A residential property is tax exempt if annual rental value is less than EGP 24,000
- A nonresidential property is exempt if the annual rental value is less than
The social insurance contribution of the employer is 26% of the basic salary (up to EGP 1,240) and 24% of the variable salary (up to EGP 2,430).
There are two distinct types of stamp tax, which are imposed on legal documents, deeds, banking transactions, company formation, insurance premiums, and other transactions, as follows:
- Nominal stamp tax is on documents, regardless of their value.
- The tax rate for items such as contracts is EGP 0.9 for each paper;
- A percentage or proportionate stamp tax is levied based on the value of transactions.
- An annual proportional stamp tax of 0.4%, shared by the bank and the
client, is imposed on a bank's loans.
Other customs taxes apply to qualifying goods and services, including a 5% tax on machinery.