Corporate Taxation in Egypt: A Guide for Foreign Investors

Egypt’s corporate tax regime is a key consideration for any foreign investor. Corporate entities (including branches) are taxed under Income Tax Law No. 91 of 2005 (as amended), and residents are subject to tax on worldwide income. In practice, an Egyptian-resident company pays tax on all profits earned at home or abroad, whereas a non-resident (foreign) company pays tax only on Egyptian-source income attributable to a permanent establishment in Egypt. There are no local municipal taxes on corporate income. The standard corporate income tax (CIT) is levied on net profits, as determined by audited financial statements and adjusted for tax rules. Companies file annual self-assessed tax returns (electronic filing is now mandatory) within four months of the fiscal year-end. Tax is paid in a lump sum with the return (credit is given for any advance withholding taxes paid during the year).

Egypt’s tax system has undergone significant reform in recent years (including a new Unified Tax Procedures Law in 2020), but the core principles remain straightforward. Deductions are allowed for bona fide business expenses, and the tax base is profit. For foreign investors, Egypt imposes no general restrictions on repatriation of profits (after taxes); however, a foreign branch is allowed to charge up to 10% of its profit as a “head office charge”. Profits of a foreign branch that are not remitted within 60 days after year-end may be deemed a dividend and subject to 10% withholding tax. In short, Egypt’s corporate tax system is a territorial regime with a flat rate structure, special rules for certain industries, and strict documentation requirements.

Corporate Income Tax Rates

The standard corporate income tax rate in Egypt is a flat 22.5% of taxable profit. This single rate applies broadly to most sectors and types of business activity. There are no graduated rates for normal businesses: a manufacturing company, a trading firm, or a technology company all generally pay 22.5% on profits. In addition to this base rate, Egypt imposes a 4% “solidarity” contribution (sometimes referred to in older law), but the combined effective rate is generally referred to as 22.5% overall.

Certain industries, however, face higher rates. In particular, oil and gas exploration/production companies are taxed at a special rate of 40.55% on their net profits. This reflects the historical concession rates for petroleum companies. Likewise, large state entities – the Suez Canal Authority, the Egyptian General Petroleum Corporation (named as the Egyptian Petroleum Authority), and the Central Bank of Egypt – are taxed at 40%. (Note: these are mostly state-owned entities; private investors in oil/gas will see the 40.55% rate.) There are also sector-specific arrangements outside the normal CIT: for example, banks and insurance companies historically faced fixed-fee systems rather than the flat tax, but these regimes have been changing. In all cases, however, the default rate is 22.5% except where noted.

Governments periodically enact incentives or surcharges for particular projects, but as of 2025 the headline rate remains 22.5% for most corporate profits. For comparison, dividend income and capital gains have their own tax rules, but corporate profits are taxed at the CIT rates above (dividend withholding is discussed below). There are no additional “local” or municipal taxes on corporate profit. Withholding taxes (see below) are treated as payments on account of CIT.

Key Points: The general corporate tax rate is 22.5% on net profit. Oil & gas companies pay 40.55%, and certain state-owned enterprises pay 40%. No local taxes apply.

Definition of Taxable Income

Taxable income for corporations in Egypt is broadly defined as the company’s net profit from all sources, subject to the specific inclusions and exclusions of the tax law. In principle, all income of a company that arises “from Egypt or abroad” is taxable for residents. This includes profits from commercial or industrial activities, as well as passive income. For example, the following items count as taxable income under Egyptian law:

• Business profits: Revenue from sales of goods or services, or from production operations, manufacturing, trading, etc.

• Asset income: Gains from the sale or disposal of business assets (buildings, machinery, land, etc.).

• Investment income: Dividends received (except where specifically exempt), interest (including government bond interest, for which a withholding tax is imposed), and yields from government-related investments.

• Rent and royalties: Rental income from property or equipment, license fees, royalty income, and similar payments.

• Miscellaneous income: Any other income earned through activities in Egypt or attributable to an Egyptian branch.

In short, taxable income = total gross income − allowable deductions. The tax law treats foreign income and Egyptian income similarly for residents. A non-resident company is taxed only on Egyptian-source income earned through a permanent establishment (PE) – meaning a fixed business location or business activity in Egypt. Notably, as part of recent reforms, Egypt now has an expanded definition of PE (including thresholds and “service PE” concepts) to ensure more foreign activities can be taxed locally.

The calculation of taxable profit follows accounting principles, but with tax adjustments. A company starts with its net profit per audited financial statements, then makes “add-backs” and “deductions” according to the tax code. For example, corporate income tax paid is not deductible (see below), and certain expenses must be adjusted. Losses from prior years can generally be carried forward up to 5 years (subject to change-of-ownership restrictions) and used to offset future taxable income. (Egypt does not have group loss consolidation; each entity must compute its own taxable income.)

Foreign investor tip: Keep thorough records. Egyptian tax law requires that any expense claimed must be “necessarily incurred” to generate the revenue, and increasingly, all costs must be supported by electronic invoices/receipts (the tax authority mandated e-invoicing from 2023). In practice, this means maintain clear invoices and contracts for every deductible expense.

Allowable Deductions and Expenses

Egyptian tax law permits deduction of ordinary business expenses that are “necessarily incurred” in generating taxable income. The general rule (Article 27 & 28, Income Tax Law) is that expenses must be real, documented, reasonable, and linked to the business activity. In practice, this means the following broad categories of expenses can be deducted (subject to documentation and law limits):

• Operating Costs: Cost of goods sold, raw materials, manufacturing costs, utilities, rent for business premises, wages and salaries, maintenance, etc. Any expense actually paid for production or commercial activity is deductible.

• Import and Setup Costs: Expenses related to importing machinery, equipment or materials, and costs of establishing an entity or physical operations in Egypt. For example, customs duties (if not refunded by law), delivery and installation costs can be included.

• Administrative & Selling Expenses: General overhead such as management salaries, office supplies, marketing, professional fees (legal, accounting), and other overhead.

• Depreciation: Statutory depreciation on capital assets. Egypt prescribes depreciation rates by law. Common rates include 5% per year for industrial/commercial buildings, 20–25% for machinery and equipment, 10% for intangible assets (like goodwill), 50% for computers/electronics, etc. The tax depreciation schedule may differ from accounting depreciation (weaken if accelerated). Nonetheless, depreciation as defined in tax law is an allowable cost.

• Interest Expense: Interest on business loans and credit facilities can be deducted, but with limitations. Egypt has thin-capitalization rules: interest on related-party debt is only deductible up to a fixed debt-to-equity ratio (currently 4:1 for 2023, phasing to 2:1 by 2028). Also, interest must be at arm’s length (especially for related parties). Within those limits, interest paid on bank loans or bonds is deductible.

• Other Normal Costs: Costs of insurance (related to business assets), travel expenses (business travel), and other usual expenses can be deducted if they are reasonable and supported by invoices.

These deductions reflect standard business accounting. Crucially, all deductible expenses must be supported by legal invoices or receipts. Under recent tax reforms, only expenses proven by electronic invoices/receipts are accepted for deduction. For example, a company cannot deduct a travel expense unless a valid e-invoice is issued by the service provider. In effect, Egypt’s unified tax procedures are forcing full transparency of business transactions.

Examples of deductible costs: The government specifically cites allowable costs such as the cost of importation of raw materials, costs incurred in setting up operations, administrative and sales expenses, and depreciation on capital assets. Interest is generally deductible up to the limits above. In summary, any expense that is normal, documented, and necessary for earning revenue is deductible.

Deduction Requirements: As PwC notes, an expense is deductible only if it is actual, documented by invoices/receipts, directly related to the business, and necessary. If you incur a large purchase or new lease, keep the official tax invoice and contract. Otherwise, the tax authority will disallow the deduction.

Non-Deductible Expenses

Certain outlays are explicitly disallowed for tax purposes. Notably, Egyptian tax law treats the following as non-deductible:

• Reserves and Provisions: Any provision for future expenses or reserve funds (for example, a reserve for bad debts or for future maintenance) is not deductible. Companies cannot “pre-expense” future liabilities.

• Fines and Penalties: Financial penalties, fines, or any punitive charges (civil or criminal) are never deductible. For instance, traffic fines, late-payment penalties, or regulatory fines must be paid out of after-tax profits.

• Income Taxes: Neither corporate income tax nor withholding taxes paid can be deducted. In other words, tax paid is taxed; you can’t deduct the tax itself.

• Certain Distributions: Dividends paid to shareholders are not deductible (since they are a distribution of profit).

• Excessive or Personal Expenses: Luxury or personal expenses without a clear business purpose (e.g. personal entertainment, non-business vehicle costs) are disallowed. The tax law allows only reasonable business-related expenditures.

• Other Specific Items: By law, other items such as unauthorized donations, interest on certain related-party loans above arm’s length, and expenses not supported by invoices are also non-deductible.

In short, deductions are only for real business costs. Any expense that is not directly tied to generating revenue, or that violates formal rules (like undocumented payments) will be denied. As a practical matter, the tax authority will reject any deduction that lacks proper paperwork or is deemed non-business.

Note: In audits, authorities pay close attention to expenses that seem unusually high or unrelated. Always document the business rationale. The Tax Law requires “economic substance” in all claims.

Withholding Taxes

Egypt’s tax regime uses withholding taxes (WHT) on various payments as a form of advance collection. Both domestic and international payments can trigger WHT:

• Domestic (Local) Withholding: Payments by Egyptian companies to Egyptian vendors (for services, supplies, etc.) above EGP 300 must include a small WHT. For example, contracting or construction payments bear 0.5% WHT, general services 2%, and commissions or professional fees 5%. These are credits against the recipient’s own income tax.

• Dividends to Shareholders: When an Egyptian company distributes dividends, it must withhold tax. Dividends paid to Egyptian companies are subject to 10% WHT (5% if the payer is listed on the Egyptian Exchange). For dividends to foreign (non-resident) corporate shareholders, the same rates apply: 10% standard, 5% on listed shares. (Note: dividends to Egyptian individuals have their own rates under the dividend income tax.) Where tax treaties exist, reduced dividend rates may apply by treaty.

• Interest to Foreign Lenders: Interest paid by Egyptian borrowers to non-resident lenders is generally subject to a 20% WHT. (Historically, Egypt had exempted interest on loans over 3 years, but the 2023 tax reform removed that exemption for most sectors.) In practice, if a foreign bank lends to an Egyptian branch or affiliate, the interest must have 20% tax withheld at source, unless a lower treaty rate applies.

• Royalties to Foreign Parties: Payments of royalties or intellectual property fees to non-residents carry a 20% WHT. (Royalty is broadly defined – e.g. patent or tech licensing fees, copyright royalties). Again, treaties can reduce this.

• Fees for Services to Foreign Firms: Fees paid for technical services or management fees to non-resident companies are also subject to a 20% WHT if the services are performed in Egypt. (If the services are performed entirely abroad and not through an Egyptian PE, a tax treaty may exempt the payment.)

• Withholding and Credits: The payer (Egyptian company) must withhold the appropriate percentage at the time of payment and remit it to the tax authority (generally by the day after withholding). The foreign recipient declares it as tax paid. Egyptian law allows a credit for treaty relief only by refund claim (ministerial decree 771/2009) after the fact, not at the time of deduction.

Summary of Common WHT Rates:

• Dividends – 10% to non-resident corporations (5% if the dividends are from listed shares).

• Interest – 20% (now applied broadly, except minimal public sector carveouts).

• Royalties/Technical fees – 20%.

• Management/Consulting services – 20%.

• Local contracting/services (Egyptian vendors) – 0.5–5% as above.

Double tax treaties can reduce these rates. Egypt has over 50 treaties in force; for example, a treaty might cut the dividend WHT to 5% or even 0%. However, by default the above rates apply. Note that all WHT collected within Egypt is credited against the recipient’s tax liability (it is not an extra tax, but an advance payment).

Investor Tip: Structure cross-border contracts with treaties in mind. For instance, if a foreign shareholder qualifies for a lower treaty dividend rate, ensure they obtain a tax residency certificate and submit a refund claim to recover any excess WHT.

Transfer Pricing and International Taxation

Egypt’s international tax rules have been overhauled to align with global standards. The country subscribes to the arm’s length principle for related-party transactions. Under Article 30 of the Income Tax Law and its executive regulations, any transaction between “closely related” parties must reflect market pricing. Egyptian tax law defines “closely related” broadly, capturing most inter-company relationships. Multinational enterprises operating in Egypt must therefore prepare transfer pricing documentation (master file, local file, and notifications) similar to OECD guidelines. Failure to document properly can lead to adjustments and penalties.

In recent years, Egypt has implemented several BEPS (Base Erosion and Profit Shifting) measures:

• Permanent Establishment (PE) Expansion: In 2018 and again in mid-2023 (Law 30/2023), Egypt expanded its PE definition. It introduced thresholds for short-term activities, “service PE” rules (taxing foreign consultants after 90 days in a year), and other OECD-like changes. This means more foreign activities (e.g. certain services, insurance activities) can create a taxable presence.

• Thin Capitalization Tightening: Egypt had a thin-cap rule limiting interest deductions for related-party debt. Law 30/2023 reduced the allowed debt-to-equity ratio from 4:1 to 2:1 by 2028. This brings Egypt in line with OECD norms to prevent excessive debt shifting.

• GAAR and MLI: Egypt enacted a General Anti-Avoidance Rule (GAAR) in 2014, which denies tax benefits to transactions whose main purpose is tax avoidance. Additionally, Egypt ratified the OECD’s Multilateral Instrument (MLI) in 2022 and applied a Principal Purpose Test (PPT) in its treaties. In practice, this means Egyptian tax authorities can challenge aggressive treaty shopping or artificial structures.

• Compliance Incentives: Notably, on 12 February 2025 Egypt passed Law No. 5 of 2025, a one-time amnesty-like law to encourage compliance. This law allows businesses to submit late or corrected tax returns (including updated TP documentation) for the years 2020–2024 without incurring usual penalties. The goal is to bring companies into compliance with TP rules, reflecting Egypt’s move toward transparency.

In Practice: The Egyptian Tax Authority (ETA) has placed transfer pricing and BEPS among its top audit priorities. Expect rigorous scrutiny of intercompany agreements, transfer pricing studies, and treaty benefits. Companies should maintain contemporaneous documentation and be ready to defend their pricing under the arm’s-length standard. The recent reforms underscore that Egypt is actively adopting OECD BEPS principles to ensure profits are taxed where economic value is created.

Tax Incentives and Free Zones

Egypt offers limited general tax holidays, but it does create special regimes for free zones and certain investments:

• Free Zones: Companies incorporated in public free zones (e.g. Suez Canal Zone, Alexandria/Port Said free zones, etc.) or special economic zones enjoy tax exemptions for their licensed activities. In practice, a free-zone enterprise pays no standard corporate income tax on income derived from its approved projects. (They may still be subject to customs duties on exports or VAT on domestic transactions, but CIT is exempt for permitted incomes.) Free zone investors also typically get customs and other regulatory benefits.

• Investment Incentives: While there is no blanket CIT holiday, Egypt’s Investment Law can grant incentives for strategic projects. These may include accelerated depreciation, customs duty exemptions on capital imports, or fee waivers (such as land registration reductions). For example, manufacturing projects and agriculture projects may get certain tax credits or fee reductions. Such incentives are case-specific and often negotiated as part of investment contracts.

• SME Regime (Law No. 6/2025): In February 2025 Egypt introduced a new regime for small enterprises. Companies with annual revenues up to EGP 20 million can opt for a highly reduced tax structure. Instead of normal CIT, qualified SMEs pay a low tax on turnover (0.4%–1.5% depending on revenue levels). Additionally, SMEs under this law are exempt from many administration requirements (simplified returns, waived leadership audit obligations, etc.). This regime is designed to ease the burden on small businesses and encourage formalization.

• Regional Incentives: Some zones like the Suez Canal Economic Zone or the Qualified Industrial Zone (QIZ) in Sinai offer similar benefits to free zones (exemption from standard CIT, with conditions on export content).

Overall, free zones are the most clear-cut tax break: operating there means normal Egyptian CIT does not apply to the company’s income from those activities. Outside free zones, foreign investors rely on general investment incentives (customs/VAT exemptions, utility and infrastructure support) rather than CIT holidays. It’s crucial to plan your project location and structure to align with any tax incentives available.

Note: Even free-zone entities must withhold tax on payments to outsiders (e.g. WHT on services) and handle customs/VAT. Also, tax incentives often have sunset dates or conditions (e.g. exports quotas) that must be met to keep them.

Tax Audits and Dispute Resolution

Egypt enforces its tax laws through a structured audit and appeals process. The basic flow is: Inspection → Internal Tax Committee → Appeal Committee → Courts.

• Inspection: The tax authority (ETA) can audit any company by examining its books and records. They will compute the tax due based on the records and issue a tax assessment detailing any additional tax owed or refund due. The auditor looks for underreported income, disallowed deductions, and transfer pricing non-compliance, among other issues.

• Internal Committee: If a taxpayer disagrees with an assessment, it can object within 30 days. The case is then referred to a Local Tax Committee (sponsored by the tax office) for review. The committee reviews disputed items, may examine the taxpayer, and issues a modified assessment or confirms the original. If the taxpayer still disagrees, it proceeds to the next level.

• Appeal Committee: The taxpayer can then appeal to an Appeal Tax Committee. This is a higher-level administrative review. The appeal committee hears arguments (the taxpayer can submit memos and appear) and renders a decision. The appeal committee’s decision is final for administrative purposes and becomes binding on both the taxpayer and the tax department. Importantly, under Egyptian law, the tax from an appeal committee decision must be paid even if the taxpayer appeals further – meaning paying and then suing for recovery is common.

• Courts: If either side is unhappy with the appeal committee’s ruling, they may take the case to the Administrative Court (State Council) within 30 days. This is a judicial review by tax courts. The court process often involves appointing a judicial tax expert and can take considerable time. The court’s final judgment is binding and typically the end of the line.

• Statute of Limitations: Assessments can generally be issued for up to 5 years after the tax year in question. In cases of tax evasion or fraud, this period can extend to 6 years. After this period, the tax becomes final and cannot be reassessed.

• Administrative Penalties: The Unified Tax Procedures Law (2020) introduced strict penalties for compliance failures. For example, late filing or reporting errors (within 60 days) incur fines of EGP 3,000–50,000. Missing filings entirely beyond 60 days can lead to fines of EGP 50,000–2,000,000. Failure to provide transfer pricing documentation or cooperate in an audit also triggers penalties in the lower range. Notifying the tax authority of registration changes late (Article 28 UTPL) yields fines of EGP 20,000–100,000. Repeat offenders face doubled or tripled fines. Taxpayers can mitigate penalties by promptly reaching agreement: if a taxpayer admits a deficiency before an appeal hearing, the penalty may be cut in half.

In essence, accuracy and timeliness are enforced by law. The appeals process itself was revamped under the Unified Tax Procedures Law – it codified these multi-tiered committees and reinforced taxpayers’ rights to contest assessments. Foreign investors should ensure they maintain clear audit trails and meet all deadlines. If audited, use the internal committee steps, but be prepared that final resolution may require litigation.

Auditor Focus: Currently, ETA audit teams target major issues like transfer pricing abuses, excessive deductions, or undeclared income. In fact, tax authorities have publicly stated that TP and BEPS are top concerns. An error in TP documentation or failure to disclose related-party transactions can lead to hefty adjustments. Given the enforcement environment, many companies opt for voluntary disclosures or advance rulings to avoid conflict.

Frequently Asked Questions

How is taxable income calculated for companies in Egypt? 

Taxable income is simply the company’s net profit for the year, after making the required tax adjustments. In practice, a company starts with its audited financial profit and then adds back any non-deductible expenses and subtracts allowable deductions (as discussed above). All income sources count – from sales revenue to investment returns – and then legal deductions are applied. The result is the net taxable income. Under law, only expenses “necessarily incurred” to earn this income can reduce it. For example, if a company earned EGP 10 million in revenue and has allowable costs of EGP 3 million, its taxable income is EGP 7 million. (Losses from prior years can offset up to 5 years of profit as long as ownership criteria are met.)

What is Egypt’s approach to transfer pricing and BEPS compliance?

 Egypt adheres to international best practices. Its tax code requires related-party transactions to follow the arm’s length principle (essentially OECD rules). Every company must document its inter-company pricing in detail. In recent years, Egypt has updated laws to align with BEPS: it broadened its permanent establishment rules, introduced a GAAR with a principal-purpose test, and even ratified the OECD’s MLI. A key development was Law No. 30 of 2023 (effective mid-2023), which explicitly embraced BEPS measures and tighten thin-cap rules. More recently, Law No. 5 of 2025 offered companies an amnesty to correct past transfer pricing filings without penalties. Today, the tax authority actively examines international transactions. In summary, Egypt is increasingly synchronized with OECD BEPS frameworks: it expects appropriate pricing and has strong anti-abuse tools like GAAR and treaty PPT in place.

Do companies operating in free zones in Egypt pay corporate tax?

 Generally, no. Companies established in approved free zones or special economic zones are exempt from standard corporate tax on their qualified activities. This is one of the main incentives of these zones. For example, a manufacturing firm in the Suez Canal Free Zone pays 0% CIT on the income from that factory’s operations. (The exemption typically applies to profits and exports; local sales or income outside the zone might still be taxed.) Aside from CIT, free-zone companies may still have customs duties (depending on exports) and must handle VAT as applicable. But in terms of corporate tax, the policy is clear: a free-zone project pays no normal CIT on its licensed income. If a free-zone company earns income outside the zone (such as from a mainland subsidiary), that income is taxed like any other Egyptian company.

What penalties apply for non-compliance with corporate tax rules in Egypt? 

Penalties in Egypt can be severe, and they were stiffened by the Unified Tax Procedures Law. Violations such as late filing, missing or false information, and lack of cooperation are penalized by fixed fines. For instance, submitting any tax return (CIT, VAT, etc.) late by more than 60 days can incur EGP 3,000–50,000 in fines per instance. Intentionally including false data or failing to file transfer pricing documentation triggers the same range. If a taxpayer fails to file an annual return at all after 60 days, the fine jumps to EGP 50,000–2,000,000. Not updating the tax registry for a company (change of address, name, shareholder) can cost EGP 20,000–100,000. Penalties double or triple for repeat offenses within three years. It’s important to note that these fines are administrative (in addition to any additional tax and interest due). To mitigate risk, taxpayers often settle with the ETA early: by law, reaching agreement during the review can cut penalties by half. In summary, late filings, undeclared income, and documentation failures all carry significant fixed penalties. Compliance (accurate returns, timely payments, complete records) is the safest approach.

What role does the Unified Tax Procedures Law play in corporate taxation?

 The Unified Tax Procedures Law (UTPL), enacted in 2020, reshaped how all taxes are administered in Egypt. It did not change rates or tax bases, but it unified and streamlined procedures for income tax (CIT), VAT, and other levies under one framework. For corporate taxpayers, UTPL introduced electronic filing mandates, integrated forms, and stricter audit rules. For example, all companies now must e-file their tax returns, and keep digital records, aligning with the law’s push for digital transformation.

UTPL also codifies the enforcement and appeals process. It sets out the powers of tax inspectors (they can now enter premises and seize data without court order) and requires companies to furnish any documents requested. Importantly, UTPL established the above-mentioned penalties for late or false filing. It provides that failure to submit required information (including related-party disclosures) leads to automatic fines. On the taxpayer side, UTPL guarantees certain rights: the right to appeal assessments before internal tax committees and courts, subject to specific deadlines. In effect, the Unified Tax Law made Egypt’s tax regime more transparent and stringent.

In summary, the Unified Tax Procedures Law supports corporate taxation by:

• Standardizing Procedures: It linked together all tax filings (income, VAT, etc.) so that a company has one integrated system. For example, the law harmonized deadlines and created a unified tax ID system.

• Digitalization: It pushed e-services and e-invoicing, reducing paper and improving compliance tracking.

• Enforcement and Penalties: It imposed fixed fines for common violations (see above) to deter late or inaccurate filings.

• Appeals: It clarified the appeals ladder (tax committees) and taxpayer rights to object.

For a foreign investor, the key takeaway is that UTPL makes it imperative to follow formal requirements strictly. Late filings or missing documents now automatically trigger fines, and the appeal routes are well defined. Having a knowledgeable local tax advisor is crucial to navigate these procedures and to use the available electronic systems.

Conclusion

Egypt’s corporate tax regime is relatively predictable, with a single headline rate of 22.5% and clear rules on income and deductions. For foreign investors, the landscape is foreigner-friendly in many respects: full repatriation of profits (in foreign currency) is allowed under law, and modern policies (like FTAs, investment incentives) encourage investment. The main caution is compliance: Egypt has modernized its tax enforcement through e-filing, strict documentation, and tough penalties.

In practical terms, a foreign company or investor in Egypt should carefully structure its enterprise (via branch or subsidiary), maintain detailed accounting and invoices, and take advantage of any available incentives (such as free zone status or SME schemes). Understanding the CIT rates (22.5% standard, higher in oil/gas) and the comprehensive definition of taxable income helps in forecasting tax liabilities. Additionally, be aware of international aspects: Egyptian law now includes expanded PE definitions and rigorous transfer pricing requirements, so cross-border contracts should be arm’s length.

In summary, while Egypt’s corporate tax rules are substantive and detailed, they are fully documented and largely aligned with international norms. Compliance is key: file returns on time, back up expenses with proper invoices, and prepare for audits on TP and BEPS issues. By meeting these obligations and leveraging the targeted incentives (free zones, SME law, etc.), foreign investors can benefit from Egypt’s economy without undue tax surprises.