Egypt’s corporate income tax is based on a company’s tax residence and the source of its earnings. Companies regarded as Egyptian residents generally pay tax on income generated both within Egypt and abroad. Foreign companies operating through a permanent establishment in Egypt are normally taxed only on profits connected to their Egyptian operations.
The standard corporate income tax rate is 22.5% of net taxable profits. This rate covers most commercial and business activities carried out in the country.
Read More: Egypt Personal Income Tax Guide: Tax Rates, Exemptions and Practical Calculations
Special Corporate Tax Rates
Certain sectors and public institutions are subject to higher rates. Companies engaged in oil exploration face a 40.55% tax rate. Meanwhile, profits earned by the Suez Canal Authority, Egyptian Petroleum Authority, and Central Bank of Egypt are taxed at 40%.
Local Corporate Taxation
Egypt does not impose separate corporate income taxes at the governorate or municipal level. Businesses therefore generally deal with corporate income taxation through the national tax system.
Key Takeaways
Egypt Taxes Resident Companies on Worldwide Income
Companies classified as tax residents in Egypt are generally required to pay corporate income tax on profits earned locally and internationally.
The Standard Corporate Tax Rate Is 22.5%
Most businesses operating in Egypt pay corporate income tax at 22.5% of their net taxable profits.
Foreign Companies Have Specific Tax Obligations
Non-resident businesses with permanent establishments in Egypt are generally taxed on profits attributable to their Egyptian operations.
Certain Industries Face Higher Tax Rates
Oil exploration companies are taxed at 40.55%, while the Suez Canal Authority, Egyptian Petroleum Authority, and Central Bank of Egypt face a 40% rate.
No Additional Local Corporate Income Taxes
Egypt does not impose separate corporate income taxes at municipal or governorate levels, simplifying the corporate income tax structure.