Tax in Egypt

Tax In Egypt

A Contractor’s Guide to Taxes :

One of the most consistently challenging aspects of contracting in Egypt is complying with the country’s tax system. As well as paying tax in Egypt, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge.

How do I calculate my taxable income:

If you’re working in Egypt under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Egypt for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Egypt, but contractors may not be offered this service because of their short stay with each employer.

Anybody who can’t pay their tax in Egypt through PAYE is left with the prospect doing everything themselves.

Do you know much about Egyptian Tax Law? Does Egypt have a tax treaty with your home country? You will need to find out or find someone who can help! Income tax in Egypt can range from 0 to 25 percent, and you need to be sure you are placed in the correct tax brackets.

Tax Calculator:

If you are a contractor and want a calculation on your tax and net retention in Egypt, we can supply it to you free of charge.

Using an Umbrella Company for Income Tax :

Contractors in Egypt are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. An Egyptian umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).

The companies are experts in Egyptian taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Egyptian tax office or tax department directly including processing your tax refund if you are eligible.

How We Can Help You with Tax:

We work with numerous umbrella companies in Egypt, many of whom are experts in tax and immigration laws. If you have any questions about tax in Egypt, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide, and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Egyptian work permit.

Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in Egypt but without the overhead of directly dealing with the Egyptian tax authorities. Get in touch with us today for some reliable advice on tax in Egypt!

When Do You Need to Lodge Your Tax Return?:
1 January (for non-residents)
Tax Filing Deadline :
1 January (for non-residents)
Can you file it online? :
Yes, https://www.incometax.gov.eg/e-services.asp
Currency:
Egyptian pound (EGP)
Tax-free Threshold in:
EGP6,500
Grossed Income:
0-6,500
Tax Rate:
0%
Grossed Income:
>6,500-30,000
Tax Rate:
10%
Grossed Income:
>30,000-45,000
Tax Rate:
15%
Grossed Income:
>45,000-200,000
Tax Rate:
20%
Grossed Income:
>200,000
Tax Rate:
25%
How long does it take to set up:
8-9 days
How much does it cost:
EGP125
Is it easy? :
Starting a Business Rank: 103/190
How to File Taxes in:

Step 1: Register

Within 30 days of employment, you need to be registered with the Egyptian tax authorities. This is the responsibility of your employer and you may be required to provide them with the following documents:

  • Identification
  • Education certificates
  • Form (1) for social insurance
  • Birth certificate
  • Valid passport
  • Work permit

Step 2: File Taxes

Your employer is responsible for filing quarterly tax returns, one month after the end of each quarter. They are also required to file an annual salary tax reconciliation, and remit any tax differences, if any, to the Egyptian tax office.

If you are a resident, your employer will withhold your employment income tax on a monthly basis and remit it to the tax office within the first 15 days of the following month.

If you are a non-resident, you are required to file a tax return within 4 months after the end of the financial year or within 30 days after the cessation of your employment. This can be done here(link is external). A translator is recommended.

Notes:

The tax rates above apply to both residents and non-residents.

Does the 183 day rule apply in:

Yes

When do you become a tax resident in:

You become a tax resident in Egypt when:

  • Egypt is your place of habitual abode i.e. (i) you are present in Egypt for most of the year whether in an owned or leased residence; or (ii) you have a commercial, professional, industrial or other place of business in Egypt;
  • You are resident in Egypt for more than 183 days whether continuously or non-continuously in a 12-month period; or
  • You are an Egyptian citizen who performs your services overseas and receives your income from an Egyptian treasury.
Am I taxed on my global income in:

Residents are taxed on their global income in Egypt. Non-residents are taxed on their Egypt-sourced income only.