Egypt

Individual income tax is imposed on the total net income of the resident individuals for income earned in Egypt, as well as the income earned outside Egypt for resident individuals whose centre of commercial, industrial, or professional activities is in Egypt. Also, tax is imposed on the income of non-resident individuals for their income earned for work provided in Egypt, regardless of the source of payment, as well as the income earned from an Egyptian source.

Employment income

Reimbursement for expenses of spouses and dependants is considered taxable income. In addition, school tuition fees, long-term living expenses, and overseas and hardship allowances are taxable.

The current tax law exempts severance pay, pension payments after the fulfilment of specific conditions, and employees’ profit share.

The following benefits are tax exempted, provided that the benefits are in kind and given for all employees. The benefits are:

• Meals distributed to the workers, provided that they are provided at the workplace.
• Group transportation of workers or equivalent transportation costs.
• Health care.
• Tools and uniforms necessary for performing the work.
• Residence provided by the employer to the workers for performing their work, provided that the residence is owned or leased by the owner. However, it is worth noting that housing is a bit of a grey area in the Egyptian Income Tax Law as there is no clear-cut definition for the conditions to qualify for the exemption.

Equity compensation

Tax is due upon exercise on the difference between the fair market value (FMV) of the shares and the purchase price paid by the employee when the employee obtained beneficial ownership of the stock. Hence, there will be Egyptian payroll tax due in Egypt as the shares are exercised.

Business income

For self-employment income, the employer is taxed at the normal tax brackets.

Capital gains

Following the amendments introduced by Law No. 151 of 2026, the tax treatment of gains from listed and unlisted securities or quotas is differentiated. 
 Listed securities: Capital gains realized from the disposal of securities listed on the Egyptian Exchange (EGX) are not subject capital gains tax at progressive individual income tax rates. The exemption does not apply where the disposal results in the company's shares being delisted from the EGX. Losses arising from disposals benefiting from the exemption may not be deducted or carried forward to subsequent tax years. 
Unlisted securities or quotas: Taxable capital gains are calculated as the difference between the sale, exchange, or other disposal value and the acquisition cost, after deducting brokerage commissions. Where the disposal is made at fair value and the relevant securities or quotas have been held for at least three years, the acquisition cost is increased by an amount equivalent to the Central Bank of Egypt's announced credit and discount rate for each year of the holding period. The acquisition cost is calculated using the weighted-average method, in accordance with the procedures prescribed by the Executive Regulations. 

Capital gains tax (CGT) treatment applicable to resident individuals

Capital gains realised from the disposal of securities listed on the EGX are exempt from capital gains tax at progressive individual income tax rates. However, the exemption does not apply where the disposal results in the company's shares being delisted from the EGX. 

• Capital gains realised from the disposal of unlisted securities or quotas are subject to personal income tax at the applicable progressive individual income tax rates.
• Where unlisted securities or quotas are disposed of at fair value after being held for at least three years, the acquisition cost is adjusted in accordance with the Central Bank of Egypt's announced credit and discount rate for each year of the holding period, subject to the applicable conditions and procedures prescribed by the Executive Regulations.
• Capital gains realised from foreign securities that fall within the scope of Egyptian taxation are subject to the applicable individual income tax rates.

CGT treatment applicable to non-resident individuals

• Capital gains realised by non-resident individuals from the disposal of securities listed on the EGX are exempt from income tax. However, the exemption does not apply where the disposal results in the company's shares being delisted from the EGX. 
• Capital gains realised from the disposal of unlisted securities or quotas are subject to personal income tax at the applicable progressive individual income tax rates. A non-resident disposer is required to calculate and remit the tax due within 60 days from the transaction date, in accordance with the procedures prescribed by the Executive Regulations.
• Capital gains realised by non-residents from the disposal of Treasury bills are excluded from this CGT treatment.

Returns received from funds

Under the newly amended tax law treatment, the gains/returns received from funds by natural persons will be subject to a flat tax rate of 5%.

Dividend income

Dividend income treatment applicable to resident individuals

A 10% withholding tax (WHT) will be imposed on dividends paid by Egyptian companies unlisted on the EGX to resident shareholders. A 5% WHT will be imposed on dividends paid by Egyptian companies listed on the EGX to resident shareholders.

Dividend income treatment applicable to non-resident individuals

A 10% WHT will be imposed on dividends paid by Egyptian companies unlisted on the EGX to non-resident shareholders. A 5% WHT will be imposed on dividends paid by Egyptian companies listed on the EGX to non-resident shareholders.

For more details, please refer to the Significant developments section of the Corporate tax summary.

Interest income

Interest income received from local banks is not taxable for residents in Egypt.

Interest income received from treasury bonds and treasury bills are subject to WHT at the rate of 20%.

The reduced rate from double taxation treaties (DTTs) applies for non-residents.

Rental income

According to article 39 of the Egyptian Income Tax Law, taxable revenue shall be determined on the basis of the actual rental value after deducting 50% there from in return for all costs and expenses concerning the revenues resulting from renting any realty or part of it according to the provisions of the Civil Code.

The normal tax brackets are imposed on the rental amount after the deduction of the 50% mentioned above.

Exempt income

Income from pensions and end of service bonuses are exempt from income tax.