Egypt taxes residents on worldwide income and non-residents on Egypt-source income only. Egypt operates a self-assessment system, with the Egyptian Tax Authority (ETA) conducting post-filing review and audit.
The Egyptian tax year is generally the calendar year (companies may adopt a different fiscal year with approval). The individual filing deadline is generally the end of March following the tax year; corporate filing deadline is generally within 4 months of the fiscal year-end.
Egypt's headline corporate income tax (CIT) rate is 22.5%.
The headline personal income tax (PIT) rate is 27.5%.
The standard VAT/GST (or equivalent consumption tax) rate is 14%.
An individual is an Egyptian tax resident if present in Egypt more than 183 days (continuous or intermittent) within 12 months, deemed to have a permanent abode in Egypt, or is an Egyptian national performing work duties abroad but paid from an Egyptian source. A foreign entity is resident if established under Egyptian law, majority (50%+) government-owned, or has its effective place of management in Egypt - the latter determined by meeting at least two of: daily managerial decisions occurring in Egypt, board meetings held in Egypt, 50%+ of board members/managers residing in Egypt, or majority shareholders residing in Egypt. Residents are taxed on worldwide income; non-residents only on Egypt-source income (both at the same progressive rates).
A non-Egyptian entity has an Egyptian permanent establishment through a fixed place of business or a dependent agent habitually concluding contracts in Egypt on the entity's behalf, following the OECD Model Treaty definition as applied under Egyptian domestic law and any applicable tax treaty.
Egypt has no formal CFC regime; instead, income from investments in non-resident companies is recognized under the equity method of revenue recognition rather than a distinct attribution-and-taxation mechanism.
Interest on related-party debt (direct/indirect 25%+ ownership, and third-party loans guaranteed by a related party) is deductible only up to a 4:1 debt-to-equity ratio (Article 49, Income Tax Law No. 91/2005 as amended by Law No. 30/2023); interest on the excess is non-deductible. The ratio is scheduled to phase down gradually to 2:1 by 2028. Equity is defined as paid-up capital plus reserves and retained earnings, less treasury shares and retained losses. Banks, insurance companies, and designated financing-activity companies are excluded. A separate cap limits deductible interest to no more than twice the Central Bank of Egypt's discount rate at the start of the relevant tax year.
Egypt does not use an elective check-the-box classification system; entity classification generally follows the entity's actual legal characteristics. Egypt does not have a comprehensive ATAD2-style anti-hybrid regime.
No foreign bank account or foreign financial asset reporting regime exists in Egypt requiring residents to separately disclose foreign accounts.
Egypt does not have a formal CFC regime (see CFC section above - Egypt instead recognizes investment income from non-resident companies under the equity method rather than a distinct attribution mechanism) and does not provide a broad participation exemption for foreign dividends in the general European sense; dividends received by an Egyptian company are generally subject to a partial exemption (a percentage of dividend income is excluded from the tax base) rather than the specific ownership/holding-period-conditioned full exemptions common in the EU.
Egypt has a real foreign tax credit regime available to both individuals and companies for foreign tax paid on foreign-source income also taxed in Egypt, capped at the Egyptian tax otherwise due on that income.
Egypt has concluded 61 double tax treaties, per GSL's named-partner compilation, including the US, UK, most of the EU, China, Japan, and most Arab League members. Egypt does not automatically apply reduced treaty withholding rates on interest/royalties at source (a 2009 ministerial decree requires the standard 20% domestic rate be withheld first, with foreign recipients able to claim a refund for the treaty-rate differential afterward). Egypt has no comprehensive tax treaty with the United States, though a treaty covering certain matters exists.