Taxes and Accounting in Egypt
Accounting (0) , Consumption/VAT/Sales Tax (0) , Corporate Tax (0) , International Tax Treaties (0) , Personal Tax (0)
Overview by Globlatrade.net:
- Tax Year
- The fiscal year starts on January 1st and ends on December 31st the same year.
- Accounting Standards
- The accounting obligations result from the Companies Act no. 159 of 1981 and Financial Market and Money Market Act no. 95 of 1992. The Accounting Plan ( the Egyptian accounting standards) is close to international accounting standards.
- Accounting Regulation Bodies
- Accounting Reports
- According to the law, all companies must present to the shareholders during their annual meeting an audit report, a balance sheet, an income statement and cash flow statement.
- Publication Requirements
- After its initial public offering, the company must present every three months a detailed report of its business (business progress and results).
Each year, a progress report and a report of the accounts (before certification) must be sent to the Capital Market Authority one month after the fiscal year end at the latest. The certified accounts cited on the Official Schedule 1 must be published in two reference journals of which at least one must be in the Arabic language.
- Professional Accountancy Bodies
Egyptian Society of Accountants and Auditors (ESAASC) , on IFAC website.
- Certification and Auditing
- All the accounts and reports are likely to be verified by government authorities such as the Tax Department (Internal Revenue) or the corporate department of the Department of Economy and Industry.
- Accounting News
Economics and Accounting News website
- Nature of the Tax
- A "General Sales Tax (GST)" apply.
- Tax Rate
- The GST (General Sales Tax) rate is 10%, except for some products :
- 25% to televisions, radios, jewellery and certain motors vehicles;
- 30% to luxury goods such as cosmetics, video cameras, and high-value vehicle.
- Reduced Tax Rate
- Reduced rates of 5% or 10%, depending on their type :
- 5% to some foodstuffs, fertilisers and locally produced medicines ;
- 10% to hotel and tourism services, specific international communications and certain services.
- Other Consumption Taxes
- Excise duty is also collected on alcoholic drinks and coffee. An additional duty is collected on brandy, cognac, gin and whisky.
- Company Tax
- Tax Rate For Foreign Companies
- For additional information on consumption tax for non-resident access the PKF tax guide on Egypt.
- Capital Gains Taxation
- Long-term capital gains are subject to tax on the companies at the standard rate (20%). Profits from movable capital are not taxable.
- Main Allowable Deductions and Tax Credit
- Setting up in special economic zones entitles the company to tax benefits. They are only taxed at 1% of their profits or operations. For additional information access the PKF tax guide on Egypt.
- Other Corporate Taxes
- A tax on real-estate assets has been put in place in June 2008. It is up to 10% of the rental value whether the property is rented out or not. If the property is rented, the rental value is the effective value of rent collected by the owner if it is higher than 7% of the purchase value. The owner is exempted from landed property if the value of the property is less than or equal to EGP 500,000.
|Individual income tax||Progressive rate from 0% to 20%|
|From EGP 0 to 5,000||0%|
|From EGP 5,001 to 20,000||10%|
|From EGP 20,001 to 40,000||15%|
|More than EGP 40,000||20%|
Double Taxation Treaties
- Countries With Whom a Double Taxation Treaty Have Been Signed
Refer to the list of International tax convention
- Withholding Taxes
- Interest: 20%, Royalties: 20%
- National Organizations
- Patents are protected by the
Patents' Office which reports to the Education Department. Designs and trademarks are protected respectively by the Office of Designs and Models and Office of Trademarks which are departments of the Trade Register, an administrative service which comes under the Ministry of Trade and Industry.
It is possible to obtain licenses for using patents and trademarks, but the agreements to use patents which involve payments outside the country must be authorized by the General Authority for Investment (GAFI). As for copyrights, they are handled by authors' societies.
- Regional Organizations
- No regional regulation bodies for intellectual property.
- International Membership
Member of the
WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention For the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)
National Regulation and International Agreements
|Type of property and law||Validity||International Agreements Signed|
Law No. 82 of 2002 and the official orders for its application taken respectively in 2003 (no. 1366) and in 2005 (no. 497)
|20 years as from the date of request submission|| Patent Cooperation Treaty (PCT)
Strasbourg agreement Concerning the International Patent Classification
Law no. 82 of 2002
|Initial period of 10 years which can be extended indefinitely for similar periods|| Trademark law treaty
Protocol relating to the Madrid Agreement
Law no. 82 of 2002
|10 year protection which can be renewed for 5 years.|
Law no. 82 of 2002
|- For literary works and software programs: the lifetime of the author + 50 years
- For registered works: 50 years from the registration date.
| Berne convention
Rome ConventionFor the Protection of Performers, Producers of Phonograms and Broadcasting Organizations
WIPO Copyright Treaty
WIPO Performances and Phonograms Treaty
Law on intellectual property no. 82
|10 years validity renewable for 5 years.|
- Independence of Justice
- The Egyptian legal system is considered as the most independent system of the Arab world. However, the activities related to politics and national security are usually handled by special courts.
- Equal Treatment of Nationals and Foreigners
- Foreign nationals can face certain difficulties during the course of their legal proceedings.
- The Language of Justice
- Egyptian Arabic.
- Recourse to an Interpreter
- It is possible to have recourse to an interpreter.
- Sources of the Law and Legal Similarities
- The primary source of the law is the Constitution of 1971. The legal system is highly influenced by the French law. It also has influences from the common law. In fact, Sharia is crucial for the questions of civil status.
- Checking National Laws Online
Egyptian laws on the Egyptian government website
- National Standards Organizations
EOS, Egyptian Organization for Standards & Quality
NIS, National Institute of Standards
- Integration in the International Standards Network
- Egypt recognizes the ISO standard. It also accepts the European standards, British, Japanese and American standards. When there is no national standard for a product, Egypt normally uses the ISO standard, the IEC or the codex alimentarius.
- Classification of Standards
- EGP then a number / year.
- Online Consultation of Standards
- The Egyptian standards can be accessed from the EOS website on payment.
- Certification Organizations
EOS Egyptian Organization for Standardization & Quality
EGAC Egyptian Accreditation Council
- General Information
Cyborlink, Website giving information on business etiquette.
World Biz , Website giving information on business etiquette.
Businessculture, Website on Egyptian business culture.
- Opening Hours and Days
- Banks: from 8:30 to 14:00 from Sunday to Thursday.
Public administration: from 8:30 to 15:00 from Sunday to Thursday.
Businesses: from 8:30 to 15:00 from Sunday to Thursday.
|Coptic Christmas day||January 7|
|Sinai Liberation day||April 25|
|Labor Day||May 1|
|Revolution Day||July 23|
|Armed Forces Day||October 6|
|Cham El Nessim (Spring Festival)||The first Monday following Orthodox Easter|
|Aid El Fitr (Ramadan Feast)||3 days public holidays marking the end of Ramadan|
|Aid el Adha (Sacrifice Feast)||4 days public holidays, 70 days after the end of Ramadan|
|Islamic New Year||Variable Date|
|Prophet Mohamed's Birthday||Variable Date|
|Coptic Easter Monday||Variable Date|
- Holiday Compensation
Periods When Companies Usually Close
|Aid el Fitr (Ramadan Feast)||3 days at the end of Ramadan|
|Aid el Adha (Sacrifice Feast)||4 days, 70 days after the end of Ramadan|
|Summer vacation||During the month of August, business is particularly slow|
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