About Egypt
Egypt is North Africa’s largest economy and a gateway to the Middle East, offering a large young workforce, Suez Canal trade access, and expanding special economic zones with tax incentives.
Comprehensive Investment Incentives and Free Zone System:
Egypt offers a range of preferential policies for investors, especially the free zone system, providing various conveniences for investors in goods import and export, customs, import currency system, and more. Companies within the free zone enjoy benefits such as exemption from customs duties and sales tax, except for automobiles. Additionally, free zone projects are exempt from taxes, but companies are required to pay service fees calculated at 0.5% of the total investment cost annually.
Foreign Ownership and Operational Flexibility:
Egypt allows 100% foreign ownership of company shares without requiring local guarantees. Investors can establish a company without visiting Egypt in person. No minimum capital is required for registration, and the government offers temporary office solutions. Local resident bank signatories are not mandatory.
Low Labor Costs:
Egypt provides a large pool of cheap labor, with average monthly wages ranging from $65 to $200, offering businesses the opportunity to reduce operational costs.
Strategic Geographic Location:
Egypt is located at the intersection of Asia and Europe, serving as a crucial trade route connecting the two continents. Through its position, Egypt has become an indispensable hub in East-West trade relations, providing significant opportunities for market expansion for businesses.
General CIT Rate
22.5
CIT Return Due Date
Within four months after the end of the fiscal year.
CIT Payment Due Date
Within four months after the end of the fiscal year.
CIT Estimated Payment Due Date
Egyptian taxpayers have the option to use the prepayment method. This means that they can pay 60% of the previous year's declared tax (or the estimated amount for the current year) to the Egyptian Tax Authority in three installments. If they choose to do so, they do not have to comply with the local income withholding tax rules (their income will not be subjected to local withholding tax).
Resident Withholding Tax (Dividend/Interest/Royalty)
5-10/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty)
5-10/0/20
General VAT Rate
14
General Capital Gain Tax Rate
0, 10 or 22.5
Composite Effective Average Tax Rate
20.81%
Composite Effective Marginal Tax Rate
14.44%
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