Egypt corporate tax - guide for international expansion

Expanding your business into Egypt? Understanding the country's corporate tax landscape is crucial for making informed decisions about this strategic Middle Eastern market. Egypt offers significant opportunities for international businesses, from its strategic location connecting Africa, Asia, and Europe to its large consumer base of over 100 million people.

Whether you're considering establishing operations in Cairo, Alexandria, or other Egyptian cities, getting to grips with corporate tax obligations will help ensure compliance and effective financial planning. Wise Business can support your expansion with local Egyptian pound accounts and efficient international payment solutions to manage your tax obligations and operational expenses seamlessly.

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This publication is provided for general information purposes and does not constitute legal, tax, or other professional advice from Wise Payments Limited, its subsidiaries or affiliates, and it is not intended as a substitute for obtaining business advice from a tax advisor or any other professional.

Egypt Corporate tax rate in 2025

The standard corporate income tax rate in Egypt is 22.5% for most companies, applicable to both resident and non-resident entities conducting business in the country. This rate has remained stable in recent years, providing predictability for businesses planning their Egyptian operations.¹

Egyptian tax-resident companies are subject to corporate income tax on their worldwide income, while non-resident companies are only taxed on Egyptian-source income. A company is considered tax-resident in Egypt if it is incorporated under Egyptian law or if its place of effective management is in Egypt.²

There are some variations to the standard rate depending on the type of business activity. Companies engaged in the exploration and production of natural gas and petroleum are subject to higher rates,¹ while certain sectors may benefit from reduced rates under specific investment incentive schemes.³

Read more about Corporate Tax Planning best practices

How to pay corporate tax in Egypt

Corporate tax payments in Egypt must be made in Egyptian pounds (EGP) to the Egyptian Tax Authority.⁴ Companies are required to file annual corporate income tax returns and make payments within four months of their financial year-end. For companies with a financial year ending on 30 June, the filing and payment deadline is 31 October.⁵

The Egyptian Tax Authority has implemented an electronic filing system called the Egyptian Tax Authority Portal, which allows companies to submit their tax returns and make payments online. This system is mandatory for most businesses and helps streamline the compliance process.⁵

Companies must make quarterly advance payments throughout the tax year, calculated based on the previous year's tax liability or estimated current year profits. These advance payments are due by the end of each quarter for companies following the standard tax year.⁵

A penalty of EGP 3,000 to EGP 50,000 is applied if a tax return is filed up to 60 days after its deadline. If the non-submission of tax returns exceeds 60 days, the penalty ranges from EGP 50,000 to EGP 2 million. This penalty can be doubled or tripled in case of recurrence.⁵

Let's calculate the annual tax liability for a company with a turnover of £1.5 million (approximately EGP 73.5 million at current exchange rates). Assuming a profit margin of 10%, the taxable profit would be EGP 7.35 million. At Egypt's corporate tax rate of 22.5%, the annual tax due would be:

EGP 7.35 million × 22.5% = EGP 1.65 million

When expanding your business to Egypt, the right financial tools will make the process smoother. Using a platform like Wise Business makes it easy to manage international finances. A multi-currency account allows businesses to pay for incorporation costs, registration fees, and government taxes in local currency without paying high exchange rate fees.

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Tax Compliance in Egypt

Businesses can stay compliant with Egypt’s tax regulations by following the steps below:⁶

• Register early: Companies must register with the Egyptian Tax Authority (ETA) to pay corporate income tax (CIT), VAT, payroll tax, and withholding tax and avoid penalties.
• File corporate tax returns on time: The tax year follows the calendar year, with returns due within four months of year-end, usually April 30. Filing requires financial statements, Tax Form 28, and supporting documents, submitted electronically.
• Stay VAT compliant: VAT returns are filed monthly through the ETA portal, within one month of the tax period’s close, using detailed sales and purchase data.
• Keep strong records: Robust bookkeeping ensures accurate reporting and deductions. Many businesses outsource corporate tax prep or audits if in-house expertise is limited.
• Plan: Applying for a corporate tax extension can help avoid penalties and ensure accuracy.

By filing on time and maintaining sound records, companies can stay compliant and focus on growth.

International Expansion to Egypt

Egypt is a strong investment destination with a high return potential when planned wisely. Since 2016, the government has been rolling out the Economic Reform Program under Egypt Vision 2030. These reforms (financial, monetary, and structural) aim to boost growth, improve stability, and make investment easier.⁷

It has a large consumer market, with a population of 109 million. The IMF expects GDP growth of around 4%, supported by structural reforms and international financing programs. Backed by the IMF’s Extended Fund Facility, the country is working toward steady macroeconomic stability, which adds confidence for foreign investors.⁸

Another strength is its geography. Positioned between Europe, the Middle East, and Africa, Egypt connects businesses to key global markets. The country has 15 commercial ports, 20 airports, and nearly 10,000 km of railways. The Suez Canal, which handles approximately 8% of global maritime trade, further solidifies its role as a major logistics hub.⁹

Recent legislative and institutional reforms have also simplified the investment process. Today, forming a company takes an average of just 20 days. Businesses benefit from a competitive Egypt corporate tax rate, supported by corporate income tax services, corporate tax specialists, and corporate tax associates who help file corporate tax on time and ensure compliance with corporate tax percentage rules.

To set up in Egypt, companies should:¹⁰

1. Conduct market research and prepare a solid business plan.
2. Choose a name and business location.
3. Obtain approval from the General Authority for Investment and Free Zones (GAFI).
4. Register with the Commercial Registry at the Ministry of Trade.
5. Set up tax registration with the Egyptian Tax Authority.
6. Open a bank account and maintain proper bookkeeping.

It’s quite evident that the country’s strategic location, combined with solid business-friendly policies, makes it a prime destination for business expansion. You may need to seek help from local professionals. Still, by maintaining a strong company culture and finding a middle ground to run your venture in Egypt, you can anticipate high profits.

Discover the top 5 best Corporate Tax softwares

Incorporation of Business in Egypt

To incorporate a business in Egypt, companies must register with the General Authority for Investment and Free Zones (GAFI), the primary authority responsible for business setup⁵. The process has become more streamlined, making it easier for foreign investors to enter the market.

When incorporating, businesses typically need:¹¹

• Company name: a unique trade name approved by GAFI.
• Type of company: chosen according to business goals and ownership.
• Articles of association: documents outlining governance and shareholder rights.
• Registered office: an official address in Egypt.
• Directors and shareholders: individuals or entities responsible for management and ownership.
• Share capital: minimum required depends on entity type.
• Tax registration: with the Egyptian Tax Authority for corporate tax submission.
• Bank account: a local account to deposit the necessary capital.

Business Entities in Egypt

Investors can choose from several structures:¹²

• Limited Liability Company (LLC): Most common for small and medium businesses. Liability is limited to investment. Requires at least two shareholders and may be fully foreign-owned.
• Joint Stock Company (JSC): Suited for larger enterprises and projects. Shares can be publicly traded. Requires at least three shareholders.
• Branch Office: This is for foreign companies wishing to operate in Egypt without forming a new entity. Activities must align with the parent company's.
• Representative Office: For market research and feasibility studies only. Cannot conduct commercial activities.
• Sole Proprietorship: Simple to set up, but the owner is personally liable for all business debts.

Many firms consult a corporate tax associate to ensure a smooth setup and compliance with corporate tax rules for 2025. These experts assist with licensing, documentation, corporate tax submission, and filing for a tax extension if needed.

With Egypt’s pro-investment policies and competitive rates compared to other low corporate tax countries, incorporation will provide an easy regional market access.

International corporate tax best practices

Managing corporate tax obligations across multiple jurisdictions requires a strategic approach that balances compliance with efficiency. International businesses should prioritise staying current with local tax laws and regulations, as these can change frequently and vary significantly between countries.

Establishing proper legal entities in each operating jurisdiction is fundamental to maintaining compliance. This includes understanding the different types of business structures available and their respective tax implications. Regular consultation with local tax advisors ensures that businesses remain compliant with evolving regulations and can take advantage of legitimate tax planning opportunities.

Double taxation treaties play a crucial role in international tax planning. Egypt has signed double taxation agreements with over 50 countries, which can help reduce the overall tax burden on international businesses by preventing the same income from being taxed in multiple jurisdictions. Understanding these treaties and their specific provisions is essential for optimising tax efficiency.

Maintaining comprehensive and accurate financial records is critical for international tax compliance. This includes proper documentation of transfer pricing arrangements, intercompany transactions, and the allocation of income and expenses across different jurisdictions. Digital record-keeping systems can help ensure consistency and accessibility of financial data across multiple locations.

Take the complexity out of international expansion with Wise Business

Researching corporate tax is a crucial step when expanding your business into a new country. The next step is setting up the financial infrastructure to handle the complexities of operating across borders, from managing multi-currency cash flow to mitigating FX risk.

The Wise Business account provides the financial tools to make your international expansion to Egypt efficient and simple. It's the one account for managing your money globally.

With a Wise Business account, you can:

• Pay suppliers and initial fees: Pay suppliers, global payroll, and one-off incorporation costs in the local currency.

• Get paid like a local: Use local account details for 8+ major currencies to easily receive payments from customers or investors.

• Manage your money across borders: Hold and exchange 40+ currencies in one account, always with the mid-market exchange rate and low, transparent fees.

• Streamline your accounting: Integrate with tools like Xero or QuickBooks to simplify tracking your company's international finances.

• Empower your team: Provide multi-user access for your finance team and issue expense cards for international spending.

Wise is designed to support every step of your journey, from paying your first registration fee to receiving international payments and managing your global treasury.

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FAQs - Corporate tax in Egypt

Who is liable for corporate tax in Egypt?

All companies incorporated in Egypt are liable for corporate income tax on their worldwide income. Foreign companies with a permanent establishment in Egypt or deriving income from Egyptian sources are also subject to Egyptian corporate tax. This includes companies engaged in commercial, industrial, or professional activities within Egypt, regardless of their country of incorporation.

Are there any tax incentives for businesses in Egypt?

Yes, Egypt offers various tax incentives to encourage investment, particularly in specific sectors and regions. The Investment Law provides incentives including reduced corporate tax rates, customs duty exemptions, and accelerated depreciation allowances. Companies investing in Upper Egypt, Sinai, or the New Administrative Capital may benefit from additional incentives. Free zones also offer significant tax advantages, including exemption from corporate income tax for a specified period.

What is the tax treatment of dividends in Egypt?

Dividends distributed by Egyptian companies to resident shareholders are generally subject to a withholding tax of 10%. However, dividends paid to non-resident shareholders may be subject to different rates depending on applicable double taxation treaties. Some treaties reduce the withholding tax rate to as low as 5% for substantial shareholdings.

What is the process for registering for corporate tax in Egypt?

Companies must register with the Egyptian Tax Authority within 30 days of commencing business activities or incorporating in Egypt. The registration process involves submitting the company's commercial register, articles of incorporation, and other required documents. Once registered, companies receive a tax identification number that must be used for all tax-related transactions and correspondence.

What are the common pitfalls to avoid regarding corporate tax in Egypt?

Common mistakes include failing to register with the tax authority promptly, inadequate record-keeping, missing quarterly advance payment deadlines, and incorrectly calculating transfer pricing for intercompany transactions. Many businesses also underestimate the importance of understanding double taxation treaties and fail to claim available benefits. Additionally, not maintaining proper documentation for tax-deductible expenses can result in disallowed deductions during tax audits.

Sources used in this article:

1. PwC Tax Summaries: Egypt Corporate Income Taxes
2. PwC Tax Summaries: Egypt Corporate Residence
3. EY: Egypt Introduces Tax Incentives for Small Enterprises
4. Ecovis: Egypt Tax Guide
5. PwC Tax Summaries: Egypt Tax Administration
6. MAG Law Firm: Corporate Taxation in Egypt
7. Invest in Egypt: Why Egypt
8. IMF: Egypt Country Profile
9. GAFI: Reasons to Invest in Egypt
10. Venture Overseas: Why Start a Business in Egypt
11. GAFI: E-Services
12. JETRO: Laws on Incorporation, Investment, Tax, and Labor (PDF)

Sources last checked 23/09/2025