Expatriate tax ebook - Egypt

Facts and figures

Pre arrival procedures
Employment visas
Tax year
Tax returns and compliance
Income tax rates
Sample income tax calculation

Pre arrival procedures
According to the Egyptian labour law Foreigners may not engage in work only after getting work permit and to be licensed by the competent ministry and be authorized to enter the country and stay for work purposes, Hence the Egyptian income tax law will be applied on the sourcing of income for those expatriates either they will be resident or non-resident.

Employment visas
The Minister shall determine the appropriate resolution of which the conditions for obtaining a license to operate and procedures and data and procedures contained in the renewal fee and who gets it. Visa must also be obtained to allow the expatriate to live in Egypt as resident or non resident. Where the expatriate's family relocates to Egypt, relevant visas are required.

Tax year
A tax period is the financial year beginning the first of January and ending on 31 of December each year, or any period of twelve months which is used as a base for computation of the tax.

Tax returns and compliance
The natural Egyptian persons who are resident for tax purposes must file their tax return before end of  march except if the source of income is salaries and the like only. Non resident for tax purposes will be subject to peremptory tax rate. The tax becomes due on the next day following the end of a tax period, and shall also become due on the death of a taxpayer, or cessation of a taxpayer’s residency, or the permanent discontinuance of a taxpayer from practicing the activity. Also penalties and fines exist as:

Interest will be charged to the amount withheld at source or should have been withheld at source and not remitted to the Tax Authority. The interest will be calculated from the due date of remitting such tax.

Income tax rates

Individual Income Tax Rates

• All taxpayers (regardless of gender or family status) are entitled to L.E. 5,000 zero rated tax.
• 10% is applicable to taxable income between L.E. 5,001- L.E.20,000
• 15% is applicable to taxable income between L.E. 20,001 to L.E. 40,000
• 20% is applicable to taxable income in excess of L.E. 40,000

The above mentioned rates are applicable to

• Salaries and other types of compensation

Information about Egypt: