Egypt's income tax system is administered by the Egyptian Tax Authority (ETA) under the Ministry of Finance. Whether you run a corporation, work as a freelancer, or employ a team, understanding how income tax works protects you from costly penalties and enables smarter financial planning.
Individual Income Tax Brackets (2025–2026)
Egypt applies a progressive tax structure on individuals:
- Up to EGP 40,000: 0% (personal exemption)
- EGP 40,001 – 55,000: 10%
- EGP 55,001 – 70,000: 15%
- EGP 70,001 – 200,000: 20%
- EGP 200,001 – 400,000: 22.5%
- Above EGP 400,000: 25%
Each bracket applies only to the income within that range — not your total income. For example, on EGP 100,000: 0% on the first 40K, 10% on 15K, 15% on 15K, and 20% on the remaining 30K.
Corporate Income Tax
Egyptian companies are taxed at a flat rate of 22.5% on net taxable profits. The taxable base is calculated after deducting:
- Actual business expenses directly related to revenue generation
- Fixed asset depreciation (per ETA-approved schedules)
- Allowances for doubtful debts (within limits)
- Tax losses carried forward from prior years (up to 5 years)
- Qualifying donations and contributions
Key Filing Deadlines
| Return Type | Deadline |
|---|---|
| Annual corporate return | Last day of March (following year) |
| Individual annual return | Last day of April |
| Quarterly advance payments | January, April, July, October |
| Withholding tax (monthly) | Following month |
Major Tax Exemptions
- Export proceeds: Profits from exporting goods and services
- New industrial zones: 10-year exemption in designated underdeveloped areas
- Agriculture: Wide exemptions for new land reclamation projects
- Investment funds: Fund income is fully exempt
- Non-profit organizations: Fully exempt from income tax
Dividends and Capital Gains Tax
Dividend distributions between Egyptian companies are subject to 10% withholding tax at source. Capital gains from selling listed securities on the Egyptian Stock Exchange are taxed at 10% for companies (individuals may qualify for exemptions).
VAT: Complementing Income Tax
Most businesses also collect Value Added Tax at 14% on goods and services — separate from income tax but tracked through the same ETA compliance portal. Egypt's e-invoicing mandate further integrates both obligations into one digital system.
Penalties for Non-Compliance
- Late filing: 1% monthly on outstanding tax
- Failure to register: EGP 5,000–50,000 fine
- Tax evasion: Fine equal to double the tax owed + potential imprisonment
How ERP Simplifies Egyptian Tax Compliance
Manual tax management exposes your business to costly errors. A modern ERP like Erpegy automates the entire process:
- Automatic tax calculation on every sales and purchase invoice
- Monthly and annual tax return preparation
- Advance payment tracking with deadline reminders
- Withholding tax reports ready for ETA submission
- Full document archive for audit defense
- Direct integration with Egypt's e-invoicing platform
5 Legal Ways to Reduce Your Tax Bill
- Document every business expense with valid invoices
- Invest in depreciable assets to reduce taxable income
- Plan profit distributions at the optimal tax timing
- Carry forward losses from prior unprofitable years
- Consult a CPA before year-end for proactive tax planning