How corporate tax works in Egypt
Egypt taxes resident companies on worldwide income at 22.5% of net profit. No local corporate surcharge exists outside sectoral lanes.
Firms to EGP 20 million turnover elect turnover tax from 0.4% under EGP 500,000 to 1.5% at the top, with qualifying dividends exempt and no withholding or advance payments. Oil and gas exploration pays 40.55%.
The July 2026 capital package exempts quarter-held two-year parents fully and kills cascading withholding in tiers. About 60 treaties cushion cross-border payments.
Tax rates at a glance
- Standard rate
- 22.50%Flat
- Small top lane
- 1.50%
- Oil rate
- 40.55%
- Parent exemption
- 25% / 2yr
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FoundersHolding companiesRegional operatorsInvestorsCross-border groups
Watch out for
- Turnover lanes trade deductions for simplicity. Margin businesses with heavy costs can pay more at 1.5% of sales than 22.5% of profit.
- Oil-rate scope is sectoral, not elective. Exploration and production economics assume 40.55% from the first barrel.
- Advance payments and quarterly VAT apply outside the small regime. Cash planning must cover prepayments, not just year-end bills.
- Transfer pricing and thin-cap rules police related-party flows. Documentation follows OECD lines with authority-specific filing.
Frequently asked questions
Does Egypt have corporate tax?
Yes, 22.5% standard with turnover lanes of 0.4% to 1.5% for small firms and 40.55% for oil and gas.
What do small companies pay in Egypt?
Turnover tax from 0.4% under EGP 500,000 to 1.5% near EGP 20 million, with dividend exemptions and no withholding.
Are parent dividends exempt in Egypt?
Yes, since July 2026 for parents holding quarter stakes for two years, with cascading withholding eliminated in tiers.