Egypt

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TAXES - ACCOUNTING

 

 

Corporate tax

Tax rate for resident companies

40%

   
Tax rate on long-term capital gains Capital gains are taxed at the rate of 20%.
   
System governing groups of companies and dividends paid by subsidiaries to their parent companies Dividends paid by an Egyptian company are not subjected to a withholding tax.
   
Tax rate on branches Branches are subjected to the corporate tax as all the other companies.




Income tax

Fiscal year The fiscal year begins on January 1-st and ends on December 31st of the same year.
   
Income tax rate The progressive rate of the individual income tax varies to 20% according to the tax bracket:
- from 0 to 5 000 EGP..........................................0%;
- from 5,000 to 20,000 EGP...............................10%;
- from 20,000 to 40,000 EGP..............................15%;
- beyond 40,000 EGP.........................................20%.
   



VAT rates

Standard rates The General Sales Tax (GST) applies to the sale of most products. The GST 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.

Exemptions include basic foodstuffs, restaurant food, natural gas, books and magazines, and goods used for scientific, educational and cultural purposes.

   
Reduced rates 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 important taxes


Name of tax
Rate
Customs duties, import duties, property tax, stamp duty and tax on real estate wealth.  
 


 

Accounting

Introduction
The Egyptian law doesn't determine all the principles of accounting and audit.


Obligations and publications
According to the law, all the companies have to present to the shareholders during their annual meeting : an audit report, a balance sheet, a profit and loss account and the statement of the cash flows.

Certification and auditing
All the accounts and reports are susceptible to be checked by governmental authorities as the tax department or companies department of the ministry of the economy and the foreign trade.

Professionals and representative organizations
The main representative body of bookkeepers and auditors is the " the Egyptian Association of Accountant and Auditors ". There are 7,000 to 8,000 auditors registered in Egypt.



Useful links
Egyptian Sales Tax Department

Last modified in January 2007
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