Taxes in Egypt
Taxes in Egypt: The Complete Market-Entry Tax Guide for Foreign Investors (2026)
Sep 12, 2026
Taxes in Egypt follow a relatively straightforward structure compared to many emerging markets — a flat 22.5% corporate rate, a single 14% VAT rate, and no separate governorate or local income taxes. But the system has moved fast on digital compliance since 2020, and a foreign investor who doesn't plan for e-invoicing, withholding obligations, and filing deadlines from day one will run into avoidable penalties. This guide walks through what actually matters for market entry.
Key Takeaways
Corporate income tax is 22.5% on net taxable profits; VAT is 14%
Businesses earning more than EGP 250,000 a year must register for VAT and e-invoicing
Companies with turnover up to EGP 20 million can opt into a simplified tax regime under Law 6/2025
The Suez Canal Economic Zone offers a 50% corporate tax cut for the first 7 years
Egypt has roughly 60 double taxation treaties that reduce cross-border withholding tax
Late filing penalties range from EGP 3,000 up to EGP 2 million depending on how late the return is
The Core Tax Types You'll Deal With
Corporate income tax (CIT): 22.5% of net taxable profits for resident companies and branches of foreign companies (40% for the Suez Canal Authority, Egyptian Petroleum Authority, and Central Bank; 40.55% for oil and gas exploration/production)
Value-added tax (VAT): 14% standard rate, with a reduced 5% rate on production machinery and equipment
Capital gains tax: 0%, 10%, or 22.5% depending on the type of gain — unlisted share disposals are generally taxed at 22.5%, while listed securities transactions can qualify for a reduced 10% rate
Personal income tax: progressive rates from 0% to 27.5% for residents on worldwide income; non-residents are taxed only on Egyptian-sourced income
Withholding tax (local payments): 1% on contracting and supply payments, 3% on services, 5% on commissions — for payments over EGP 300; this counts as an advance against the payer's or recipient's final CIT liability
Withholding tax (cross-border): up to 20% on dividends, interest, and royalties paid abroad, generally reduced under Egypt's network of roughly 60 double taxation treaties
Social insurance: 29.75% of salary combined (18.75% employer, 11% employee)
None of these are charged at the governorate or municipal level — Egypt's tax system is fully centralized under the Egyptian Tax Authority (ETA).
Tax Incentives for Foreign Investors
Investment Law 72/2017 additional deductions: up to 50% of net taxable profit for projects in less-developed regions or strategic sectors
Suez Canal Economic Zone (SCZone): 50% reduction on the standard 22.5% CIT rate for the first 7 years, 0% customs duty on imported machinery and materials, and 0% VAT on procurement
Golden License projects: streamlined approval covering incorporation, licensing, and land allocation for strategic and national-priority sectors
Simplified tax regime (Law 6/2025): businesses with annual turnover up to EGP 20 million get relief from some withholding and advance-payment obligations — but enrollment in the e-invoice and e-receipt systems is a strict prerequisite
E-Invoicing: The Compliance Requirement You Can't Skip
Since 2020, Egypt has rolled out a mandatory digital tax system under the Unified Tax Procedures Law (Law 206/2020), and it now applies to essentially every VAT-registered business:
Registration threshold: businesses with more than EGP 250,000 in annual revenue must register for VAT and e-invoicing (this threshold was cut from EGP 500,000 under Resolution 281/2025)
B2B invoices: must be issued in XML or JSON format, digitally signed with an eSeal (HSM or USB token), and submitted in real time to the ETA portal for validation before they're legally valid — paper invoices no longer support VAT deductions
B2C receipts: must be digitally reported as e-receipts, with a QR code on printed receipts from 2026 onward
B2G transactions: e-invoicing has been mandatory for sales to government entities since 2021
Imports: importers must register on the e-invoicing system and use standardized GS1 product codes to clear goods through the NAFEZA single-window customs platform
If your business earned more than EGP 250,000 in 2025, registration was required by 31 March 2026 — if you haven't registered yet, this should be an immediate priority, not something to defer.
Filing Deadlines You Need on Your Calendar
Annual corporate income tax return: due within 4 months of fiscal year-end (30 April for a 31 December year-end)
Quarterly advance CIT payments: 4 installments, each roughly 25% of prior-year tax, due around 20 April, 20 July, 20 October, and 20 January
Annual personal income tax return: due 31 March
VAT returns: filed monthly, due within the following month
Withholding tax (Form 41): filed quarterly
Missing these isn't a minor administrative slip — late filing penalties range from EGP 3,000–50,000 if filed within 60 days of the deadline, rising to EGP 50,000–2,000,000 beyond that, and penalties can double or triple on repeat offenses. Late payment also accrues monthly interest.
Transfer Pricing: What Related-Party Transactions Require
If your Egyptian entity transacts with related parties abroad (a parent company, a sister subsidiary), Egypt's transfer pricing rules require supporting documentation:
Local File: due within 2 months of your CIT return deadline (30 June for a 31 December year-end)
Master File: required for the ultimate parent entity regardless of size or threshold
This is one of the most commonly overlooked compliance items for newly registered foreign subsidiaries — build it into your first-year compliance calendar, not your third.
Common Mistakes Foreign Investors Make on Egyptian Taxes
Registering for VAT/e-invoicing late, or not at all, after crossing the EGP 250,000 threshold
Missing quarterly advance CIT payments because the business is used to annual-only tax systems elsewhere
Assuming free zone or SCZone status is automatic rather than something that must be formally applied for
Overlooking transfer pricing documentation for intercompany transactions
Underestimating how strictly the ETA now cross-references e-invoice, social insurance, and bank data — the digital compliance net has tightened significantly since 2023
Frequently Asked Questions
What is the corporate tax rate in Egypt?
The standard corporate income tax rate is 22.5% of net taxable profits, with limited exceptions for petroleum, gas exploration, and specific state authorities taxed at 40–40.55%.
Do I need to register for e-invoicing in Egypt?
Yes, if your annual revenue exceeds EGP 250,000. This threshold was lowered from EGP 500,000 in 2025, bringing many small and mid-sized businesses into scope for the first time.
Are there tax incentives for foreign investors in Egypt?
Yes — Investment Law 72/2017 offers additional profit deductions for strategic sectors and underdeveloped regions, and the Suez Canal Economic Zone offers a 50% corporate tax reduction for the first 7 years.
When are corporate tax returns due in Egypt?
Within 4 months of your fiscal year-end — 30 April for companies on a calendar tax year.
Does Egypt have double taxation treaties?
Yes, Egypt has roughly 60 double taxation agreements that can reduce withholding tax on dividends, interest, and royalties paid abroad.
Get Your Tax Structure Right From Day One
Egypt's tax system rewards businesses that register correctly, file on time, and claim the incentives they're actually eligible for — and penalizes the ones that don't. OAF handles tax registration, e-invoicing setup, monthly and quarterly filings, and ongoing compliance for foreign-owned companies operating in Egypt, so nothing slips through the cracks in your first year.
Want a clear picture of your tax obligations before you register your company? Talk to our advisory team for a tailored tax assessment.
Key Takeaways
Corporate income tax is 22.5% on net taxable profits; VAT is 14%
Businesses earning more than EGP 250,000 a year must register for VAT and e-invoicing
Companies with turnover up to EGP 20 million can opt into a simplified tax regime under Law 6/2025
The Suez Canal Economic Zone offers a 50% corporate tax cut for the first 7 years
Egypt has roughly 60 double taxation treaties that reduce cross-border withholding tax
Late filing penalties range from EGP 3,000 up to EGP 2 million depending on how late the return is
The Core Tax Types You'll Deal With
Corporate income tax (CIT): 22.5% of net taxable profits for resident companies and branches of foreign companies (40% for the Suez Canal Authority, Egyptian Petroleum Authority, and Central Bank; 40.55% for oil and gas exploration/production)
Value-added tax (VAT): 14% standard rate, with a reduced 5% rate on production machinery and equipment
Capital gains tax: 0%, 10%, or 22.5% depending on the type of gain — unlisted share disposals are generally taxed at 22.5%, while listed securities transactions can qualify for a reduced 10% rate
Personal income tax: progressive rates from 0% to 27.5% for residents on worldwide income; non-residents are taxed only on Egyptian-sourced income
Withholding tax (local payments): 1% on contracting and supply payments, 3% on services, 5% on commissions — for payments over EGP 300; this counts as an advance against the payer's or recipient's final CIT liability
Withholding tax (cross-border): up to 20% on dividends, interest, and royalties paid abroad, generally reduced under Egypt's network of roughly 60 double taxation treaties
Social insurance: 29.75% of salary combined (18.75% employer, 11% employee)
None of these are charged at the governorate or municipal level — Egypt's tax system is fully centralized under the Egyptian Tax Authority (ETA).
Tax Incentives for Foreign Investors
Investment Law 72/2017 additional deductions: up to 50% of net taxable profit for projects in less-developed regions or strategic sectors
Suez Canal Economic Zone (SCZone): 50% reduction on the standard 22.5% CIT rate for the first 7 years, 0% customs duty on imported machinery and materials, and 0% VAT on procurement
Golden License projects: streamlined approval covering incorporation, licensing, and land allocation for strategic and national-priority sectors
Simplified tax regime (Law 6/2025): businesses with annual turnover up to EGP 20 million get relief from some withholding and advance-payment obligations — but enrollment in the e-invoice and e-receipt systems is a strict prerequisite
E-Invoicing: The Compliance Requirement You Can't Skip
Since 2020, Egypt has rolled out a mandatory digital tax system under the Unified Tax Procedures Law (Law 206/2020), and it now applies to essentially every VAT-registered business:
Registration threshold: businesses with more than EGP 250,000 in annual revenue must register for VAT and e-invoicing (this threshold was cut from EGP 500,000 under Resolution 281/2025)
B2B invoices: must be issued in XML or JSON format, digitally signed with an eSeal (HSM or USB token), and submitted in real time to the ETA portal for validation before they're legally valid — paper invoices no longer support VAT deductions
B2C receipts: must be digitally reported as e-receipts, with a QR code on printed receipts from 2026 onward
B2G transactions: e-invoicing has been mandatory for sales to government entities since 2021
Imports: importers must register on the e-invoicing system and use standardized GS1 product codes to clear goods through the NAFEZA single-window customs platform
If your business earned more than EGP 250,000 in 2025, registration was required by 31 March 2026 — if you haven't registered yet, this should be an immediate priority, not something to defer.
Filing Deadlines You Need on Your Calendar
Annual corporate income tax return: due within 4 months of fiscal year-end (30 April for a 31 December year-end)
Quarterly advance CIT payments: 4 installments, each roughly 25% of prior-year tax, due around 20 April, 20 July, 20 October, and 20 January
Annual personal income tax return: due 31 March
VAT returns: filed monthly, due within the following month
Withholding tax (Form 41): filed quarterly
Missing these isn't a minor administrative slip — late filing penalties range from EGP 3,000–50,000 if filed within 60 days of the deadline, rising to EGP 50,000–2,000,000 beyond that, and penalties can double or triple on repeat offenses. Late payment also accrues monthly interest.
Transfer Pricing: What Related-Party Transactions Require
If your Egyptian entity transacts with related parties abroad (a parent company, a sister subsidiary), Egypt's transfer pricing rules require supporting documentation:
Local File: due within 2 months of your CIT return deadline (30 June for a 31 December year-end)
Master File: required for the ultimate parent entity regardless of size or threshold
This is one of the most commonly overlooked compliance items for newly registered foreign subsidiaries — build it into your first-year compliance calendar, not your third.
Common Mistakes Foreign Investors Make on Egyptian Taxes
Registering for VAT/e-invoicing late, or not at all, after crossing the EGP 250,000 threshold
Missing quarterly advance CIT payments because the business is used to annual-only tax systems elsewhere
Assuming free zone or SCZone status is automatic rather than something that must be formally applied for
Overlooking transfer pricing documentation for intercompany transactions
Underestimating how strictly the ETA now cross-references e-invoice, social insurance, and bank data — the digital compliance net has tightened significantly since 2023
Frequently Asked Questions
What is the corporate tax rate in Egypt?
The standard corporate income tax rate is 22.5% of net taxable profits, with limited exceptions for petroleum, gas exploration, and specific state authorities taxed at 40–40.55%.
Do I need to register for e-invoicing in Egypt?
Yes, if your annual revenue exceeds EGP 250,000. This threshold was lowered from EGP 500,000 in 2025, bringing many small and mid-sized businesses into scope for the first time.
Are there tax incentives for foreign investors in Egypt?
Yes — Investment Law 72/2017 offers additional profit deductions for strategic sectors and underdeveloped regions, and the Suez Canal Economic Zone offers a 50% corporate tax reduction for the first 7 years.
When are corporate tax returns due in Egypt?
Within 4 months of your fiscal year-end — 30 April for companies on a calendar tax year.
Does Egypt have double taxation treaties?
Yes, Egypt has roughly 60 double taxation agreements that can reduce withholding tax on dividends, interest, and royalties paid abroad.
Get Your Tax Structure Right From Day One
Egypt's tax system rewards businesses that register correctly, file on time, and claim the incentives they're actually eligible for — and penalizes the ones that don't. OAF handles tax registration, e-invoicing setup, monthly and quarterly filings, and ongoing compliance for foreign-owned companies operating in Egypt, so nothing slips through the cracks in your first year.
Want a clear picture of your tax obligations before you register your company? Talk to our advisory team for a tailored tax assessment.