You can learn more from our asked questions

Whether you are a start-up venture, small to medium size enterprise, family business, Not-for-profit organization or international company looking for advice in Egypt

What is the current withholding tax rate in the jurisdiction applicable to:

  1. Interest
  2. Royalties
  3. Dividends
  4. Capital Gains
  5. Management/technical fees
  6. Other, please specify

A1 - Response

 Current rate:

  1. 20%
  2. 20%
  3. 10% shall be reduced to 5% if the subject shares are listed in the Egyptian Stock Market.
  4. 10%
  5. 20%

20% on amounts paid abroad against services, artist and sportsman works

Does the territory have double taxation treaties in force?

A-2 Response

Yes, Egypt signed around 55 double tax treaties with other states. 


A 3-Response

Most of them follow the OECD model; however there are other treaties followed  the UN model.

A4 - Response

Yes; However,  the domestic regulations restrict the direct application of tax treaties through the following procedures:

For services: The company paying the fees should submit an advance ruling along with specific documentation to the tax authority explaining transactions and the company’s tax treatment as per its understanding of the law and tax treaty.

As for royalties and interest: The payer shall apply pay and refund mechanism by  deducting  the law  tax rate as per law (20%); then the beneficial owner should apply to the local tax authority in the territory to refund difference tax between the 20% and reduced tax rate as per the treaty.

A5 - Response

As per our communication with the key persons in the Egyptian tax authority ( ETA) the ETA has serious intention to amend some of the double tax treaties; however, it’s not officially published yet.

Does the territory have local rules/guidelines in respect of thin capitalisation?

A6 - Response

Yes , the Debit/equity ratio should not be more than 4:1 and interest paid in relation to exceeding interest shall not be deductible.

Still have you any problem for solutions?

For any inquiries relating to my Retail and Leadership Programs or Coaching and Mentoring services feel free to speak to me personally by call us during business hours.

Head office address:

11 El Obour Buildings,
Salah Salem Street.
Nasr City, Cairo, Egypt.

Call us:

(+2) 010 2442 74 51

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