Egypt

Egypt provides a number of tax incentives under specific legislation. Free zone entities are generally exempt from corporate income tax in respect of their permitted and licensed activities, while entities established under the special economic zones regime may benefit from the incentives available under the relevant legislation.

Certain incentives may also be available under the Egyptian Investment Law for qualifying activities and projects.

Foreign tax credit

The foreign tax paid by a resident company on its profits earned abroad is deductible from the tax payable in Egypt; however, losses incurred abroad are not deductible.

Investment incentive for public offerings 

Under Law No. 151 of 2026, companies that offer their shares on the Egyptian Exchange (EGX) pursuant to a prospectus approved by the Financial Regulatory Authority (FRA) may benefit from an investment incentive equal to 15% of the income tax due according to the corporate income tax return for a period of three years from the date of the offering. 

The incentive is available provided that: 

• the market value of the company's shares at the time of the offering, based on fair value, is at least EGP 50 billion, and 

• the shares offered represent at least 20% of the company's shares, or the value of the shares offered is at least EGP 10 billion. 

The incentive may be granted only once during the lifetime of the company and may not be combined with any other tax incentives provided under other laws. 

The Executive Regulations will prescribe the procedures and mechanisms for reviewing and verifying compliance with the qualifying conditions, as well as the rules governing the suspension or recovery of the incentive where the relevant conditions cease to be met, in coordination with the FRA. 

The Minister of Finance may extend the incentive for a further equivalent period, subject to conditions determined in coordination with the FRA.