Dealing with tax in Egypt while overseas can be tricky and pose complications that would demand expert guidance. Bradford Jacobs has over 20 years of experience among leading global payroll providers and we ensure our clients comply with every aspect of tax laws wherever they operate around the world. Our local ‘know-how’ plus international expertise is vital for companies expanding into Egypt and farther afield throughout Africa, the Mediterranean and the Middle East.

Our dedicated specialists remove the burdens of worrying about tax complications while you focus on building your business in a new territory. From locating the brightest talent to running your payroll, our Professional Employer Organisation (PEO) and Employer of Record (EOR) specialists will guide you in every way.

Overview of Tax in Egypt

Personal Income Tax (PIT):

Seven bands start from 0% up to EGP 15,000 (€750, US$800) to the top rate of 25% for excess income over EGP 400,000 (€20,050, US$21,420). There is an annual tax-free allowance of EGP 9,000 (€452, US$482) and an exempt amount of up to EGP 15,000.

Social Insurance Taxes:

Employers contribute 18.75% of payroll to the National Authority for Social Insurance. Employees’ contributions are based on their annual ‘social insurance salary’ limits, which have increased by 15% in January each year since 2021. From 2028 the increase will be based on inflation.

Corporate Income Tax:

The headline rate is 22.5% on resident companies’ net taxable worldwide profits. Non-resident companies are taxed on income earned in Egypt.

Value Added Tax (VAT):

The standard rate is 14% on all goods and services. Exceptions include machinery or equipment used to produce goods or supply services, which can be taxed at 5%.

Withholding Tax (WHT):

Dividends paid by companies not listed on Egypt’s Stock Exchange are liable for 10% WHT, reduced to 5% for listed companies.

Capital Gains Tax (CGT):

Gains from securities listed on the Stock Exchange are taxed at 10%, with 22.5% applying to securities from non-listed companies.

Annual Personal Income Tax in Egypt

From Not Over Tax %
EGP 15,000 (EUR 750 - USD 800)
EGP 15,001
EGP 30,000 (EUR 1,500 - USD 1,600)
EGP 30,001
EGP 45,000 (EUR 2,250 - USD 2,400)
EGP 45,001
EGP 60,000 (EUR 3,000 - USD 3,210)
EGP 60,001
EGP 200,000 (EUR 10,000 - USD 10,700)
EGP 200,001
EGP 400,000 (EUR 19,990 - USD 21,440)
Over EGP 400,000

*Rates also apply to non-residents’ income sourced in Egypt. Residents and non-residents have a tax-free allowance of EGP 9,000 (€450, US$480) in addition to the exempt amount of up to EGP 15,000.

Taxpayers earning net income above EGP 600,000 are precluded from the lower percentage rates, as follows:

From Not Over Tax %
EGP 600,000 (EUR 23,718 - USD 24,460)
EGP 700,00 (EUR 27,707 - USD 28,750)
EGP 700,000
EGP 800,000 (EUR 31,664 - USD 32,656)
2.5% & 0%
EGP 800,000
EGP 900,000 (EUR 35,635 - USD 36,751)
10% & 2.5% & 0%
EGP 900,000
EGP 1,000,000 (EUR 3,000 - USD 3,210)
15% & 10% & 2.5% & 0%
Over EGP 1,000,000
20% & 15% & 10% & 2.5% & 0%

Individual Tax Rules in Egypt

  • The tax year is generally the calendar year, although any 12 months can be taken for assessing liability.
  • Income tax from salaries is deducted by employers at source for remittance to the Tax Authority monthly by the 15th of the month following the payment.
  • Employers must file quarterly payroll returns in January, April, July and October, plus submit an annual reconciliation of all salaries and taxes on January 1 following the tax year.
  • Individual taxpayers not on payroll must submit returns by March 31, following their tax year.
  • The progressive tax regime has seven bands up to a top rate of 25% for excess annual income above EGP 400,000 (EUR 20,050, USD 21,420).
  • There is a tax-free allowance of EGP 9,000 (EUR 450, USD 482) in addition to the exempt amount of up to EGP 15,000 (EUR 750, USD 800).
  • Taxpayers with net earnings from EGP 600,000 (EUR 30,000, USD 32,130) and above EGP 1,000,000 (EUR 50,110, USD 53,530) are excluded from the lower rates of 0% to 20%, depending on their income.
  • Married couples cannot file joint returns.
  • Those with a permanent home in Egypt, those living in Egypt for a total of 183 days, not necessarily continuous, and those who carry out duties abroad if their salaries are received in Egypt are considered tax residents.
  • Residents are taxed on their worldwide income, and non-residents are on income sourced in Egypt.

Employer's Social Insurance and Statutory Contributions in Egypt

Employers contribute 18.75% of the total social insurance salary on their payroll.


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