Country：埃及 · Tax & Audit
Egypt · Tax & Audit
The standard Egyptian corporate income tax rate is 22.5% (up to 40.55% for oil and gas exploration/production), VAT is 14%, and withholding on dividends, interest, and royalties paid to non-residents is about 10%–20% (reducible to 5%–10% under the China-Egypt tax treaty). Free zones and the Suez Canal Economic Zone (SCZone) enjoy income tax holiday periods and import/export VAT exemptions. Since 2025, e-invoicing and e-receipts are mandatory; SME Law 6/2025 provides a simplified tax regime.
Key points
- CIT: standard rate 22.5%; oil and gas 40.55%; export-oriented activities in free zones/SCZone can enjoy CIT holiday periods.
- VAT: standard 14%, exports 0%, some production inputs 5%; registration required when annual turnover exceeds EGP 540,000.
- Withholding: dividends 10% (5% for listed companies), interest and royalties 20%, reducible to 5%–10% under treaty benefits.
- E-invoicing/receipts: since April 2023 only e-invoices count as pre-tax deduction evidence; e-receipts mandatory since January 2025.
- SME Law 6/2025 (effective 2025-03-01): companies with annual revenue ≤ EGP 20 million apply a simplified rate of 0.4%–1.5%.
- The China-Egypt tax treaty avoids double taxation; transfer pricing and CbCR obligations apply.
Procedure
- Obtain the tax number (TIN) and VAT registration.
- Non-resident suppliers register simply via SVRS.
- File VAT monthly and CIT annually.
- Large groups must file CbCR and transfer pricing documentation.
- Free-zone companies apply for tax incentives.
Hard requirements
- Local bookkeeping; use of the e-invoicing system; TP documentation for large groups.
Costs
Pay taxes per rules; free-zone incentives can significantly reduce the burden.⏱ ⏱ Timeline：Annual CIT filing; monthly VAT filing.⚠ Common risks
- Not using e-invoices makes input VAT non-deductible.
- Transfer pricing adjustments and general anti-avoidance rules (GAAR) apply.
- Failing free-zone conditions triggers tax recovery.
Handbook
📘 Step-by-Step Handbook (with owner / timeline / cost / penalties)
Applies to：Chinese companies conducting taxable activities in Egypt, including LLC/JSC, free-zone and SCZone companies, and non-resident suppliers; covers CIT, VAT, withholding tax, and e-invoicing compliance.
Prerequisites
- 14-digit TIN and VAT registration obtained (required when annual turnover exceeds EGP 540,000).
- E-invoicing/e-receipt system integration planned (mandatory by ETA).
- SME Law 6/2025 simplified regime assessed (annual revenue ≤ EGP 20 million).
- Free-zone/SCZone admission confirmed for income tax and VAT incentives.
- Non-resident suppliers should assess SVRS simple registration obligations.
| Step | Action | Owner | Timeline | Cost | Official form / system | Notes & penalties |
|---|---|---|---|---|---|---|
| 1 | Obtain the taxpayer identification number (TIN) and VAT registration. | ETA/GAFI linkage | Linked at registration; VAT registered at threshold | Included in tax registration | ETA tax registration, VAT registration (mandatory when annual turnover > EGP 540,000) | Penalty：Failing to register VAT at threshold incurs fines and loses input VAT deduction. |
| 2 | Non-resident supplier SVRS simple registration. | Non-resident company/ETA | Before making taxable supplies to consumers | Agency/system integration fees | Simplified Vendor Registration System (SVRS) registration | Penalty：Charging VAT to Egyptian consumers without registration is a violation. |
| 3 | E-invoicing and e-receipt system integration. | Company/ETA-certified service provider | Invoices mandatory since April 2023; receipts since January 2025; extended to new industries from 2025-09-15 | Digital signature/e-seal, POS/ERP integration fees | ETA e-invoicing portal, e-receipts (POS integration, per ETA Decision No. 281/2025) | Penalty：Paper invoices invalid, not deductible; late penalties EGP 300–20,000. |
| 4 | Monthly VAT and annual CIT filings. | Company/tax agent | VAT monthly (quarterly for small businesses); CIT annual | Tax per rules | VAT return, CIT return, e-invoice data | Penalty：Late filing/payment surcharge of 1.5%–2% of the outstanding amount per month. |
| 5 | Withholding tax and treaty treatment. | Company/ETA | Withhold when paying non-residents | WHT (dividends 10%/listed 5%, interest/royalties 20%, treaty down to 5%–10%) | WHT filing, tax residency certificate (TRC) for treaty benefits | Penalty：Failure to withhold or wrong rates lead to additional tax and fines. |
| 6 | Large-group transfer pricing and CbCR. | Group tax/ETA | Annual | Documentation preparation fees | Transfer pricing documentation, CbCR | Penalty：TP adjustments and GAAR application risk. |
| 7 | Free-zone/SCZone tax incentive applications. | Free-zone authority / ETA | Establishment/operation stage | Application fees per zone | CIT holiday, import/export VAT exemption applications | Penalty：Unmet conditions (e.g., export orientation) trigger tax recovery. |
✅ Self-check list
⚠ Common pitfalls
Not using e-invoices影响：Input tax non-deductible, paper invoices invalid, and fines规避：Fully integrate ETA e-invoicing/e-receipts and retain compliant evidence
TP adjustments and GAAR application影响：Cross-border service fees/royalties recharacterized, additional tax and fines规避：Prepare TP documentation and ensure commercial substance and arm's-length pricing
Free-zone conditions unmet and taxes recovered影响：CIT holiday/VAT exemption revoked with back-tax规避：Strictly satisfy export-orientation conditions and retain evidence
Wrong WHT rate application影响：Overpayment without treaty benefits, or penalties for under-withholding规避：Prepare TRC and apply the 5%–10% treaty rate per the China-Egypt agreement
SME Law eligibility misjudgment影响：Missing the 0.4%–1.5% simplified rate, or correction for misuse规避：Assess annual revenue ≤ EGP 20 million and opt in to lock 5 years of benefits
VAT threshold misjudgment and missed registration影响：Fines and loss of input VAT deduction规避：Register once revenue exceeds EGP 540,000 and monitor revenue
📅 Ongoing post-incorporation obligations
- File VAT monthly (quarterly for small businesses).
- File CIT annually and retain e-invoice and receipt archives.
- Use only e-invoices as pre-tax deduction evidence.
- Withhold and file WHT on payments to non-residents on time.
- Large groups file TP documentation and CbCR on time.
- Free-zone companies maintain incentive conditions and file periodically.
- File changes in tax number, address, or structure with ETA promptly.
🔗 Official portals
📎 Source：Egyptian Tax Authority (ETA); Investment Law 72/2017 and 160/2023; SME Law 6/2025
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