Which taxes does an entrepreneur have to pay? How much?

The taxes commonly applicable for entrepreneurs are:

Corporate Income Tax (CIT)

Also known as business tax, it is a tax imposed on businesses incorporated in Egypt that derive income from within Egypt. This also includes businesses incorporated in Egypt that derive income from abroad; except for foreign activities that are performed through a permanent establishment located abroad. The CIT rate in Egypt is 22.5%.

General Sales Tax (GST)

GST is an indirect tax on the consumption of goods and services that are levied on locally produced goods and imported goods. The standard GST rate is 13%, 14%

The following services are subject to GST:

• Hotels and restaurants
• Telecommunications
• Maintenance and installation services
• Car rental and tourist transport services
• Security and cleaning services
• Courier services

The Egyptian Tax Authority hopes to introduce a single VAT rate in the near future that would replace the GST.

Social Insurance

On monthly base salaries up to LE 875 it is divided between the employer and employee in the following way:

• Employer          26%
• Employee         14%

On amounts in excess of EGP 875 of the base salary, with a maximum excess amount of EGP 625 a month it is divided by the employer and employee in the following way:

• Employer          24%
• Employee         11%

How do I pay for my tax?

Corporate Income Tax (CIT)

Companies are permitted to file their annual tax returns together with their financial statements either before the 1^st of May or four months after the end of the company’s financial year.

For more details, please visit here.

General Sales Tax (GST)

The GST return must be submitted monthly and paid usually within one month following the end of the return period for goods and services.

For more details, please visit here.

Useful Links

• Egyptian Tax Authority 
• Ernst & Young Corporate Tax Guide – Egypt 
• Ernst & Young VAT, GST and Sales Tax Guide – Egypt