This article provides a clear summary of Egypt’s corporate tax framework for companies, specifically outlining the standard tax rates, assessment basis, and the application of higher rates to certain sectors as of 2025.
Overview of Corporate Taxation in Egypt (2025)
Egypt’s corporate tax regime is structured around a flat rate system, meaning most companies are taxed at a uniform rate, regardless of profit level. The tax base generally covers all entities classified as corporate taxpayers in Egypt.
Key Corporate Tax Data
| Parameter | Value | Unit / Notes |
|---|---|---|
| Corporate Tax Rate | 22.5% | Flat rate for most companies |
| Assessment Basis | Corporate | Applied to company profits |
| Currency | EGP | Egyptian Pound |
| Holding Period | Not specified | No official minimum or maximum period disclosed |
| Progressive Brackets | None | Flat rate regime |
Surtaxes for Special Sectors
The Egyptian corporate tax system applies higher rates to specific sectors, as mandated for 2025. The sectors and their corresponding rates are as follows:
| Sector | Surtax Rate (%) | Comments |
|---|---|---|
| Oil Exploration Companies | 40.55% | Applies to oil sector profits |
| Suez Canal Authority | 40% | Profits from canal activities |
| Egyptian Petroleum Authority | 40% | Petroleum sector profits |
| Central Bank of Egypt | 40% | Profits of CBE subject to this rate |
For these entities, the effective tax rate is significantly higher than the general flat rate applied to other corporations.
Assessment Basis and Payment
The basis for assessment is corporate profits. There is currently no publicly available information specifying required holding periods for assets to qualify for particular tax treatments. Additionally, Egypt’s system does not use progressive brackets for corporate taxpayers—all eligible entities outside the specific sectors listed above are taxed at the standard flat rate.
Currency and USD Comparison
Corporate taxes in Egypt are calculated and payable in Egyptian Pounds (EGP). For reference, as of early 2025, the estimated exchange rate is 1 USD ≈ 48 EGP. For example, a taxable profit of EGP 1,000,000 would correspond to approximately USD 20,833, translating to a corporate tax liability of EGP 225,000 (USD 4,687) at the standard 22.5% rate.
Pro Tips for Navigating Egypt’s Corporate Tax System
- Ensure clear separation of company activities. If your company has interests in the petroleum or canal sectors, anticipate elevated tax rates. Carefully review contract terms related to sector allocation.
- Regularly monitor regulatory changes via official government channels, as sector-specific tax rates may be updated or redefined.
- Maintain robust, transparent accounting records in EGP for compliance ease and audit preparedness. This can streamline the annual filing process and help avoid disputes.
- When managing foreign currency exposure in profits, align your accounting conversions with the latest published rates from the Central Bank of Egypt to prevent discrepancies.
Further Resources
For more details, visit the official website of the Egyptian Ministry of Finance: https://www.mof.gov.eg
In summary, Egypt applies a flat 22.5% corporate income tax to most companies, with higher rates for the oil, canal, and central banking sectors. Progressive brackets do not apply, and all calculations must be in EGP. Stay up-to-date with changes and maintain compliance through careful sector classification and strong internal controls for a straightforward tax experience under Egypt’s 2025 regime.