EGYPT Law and Practice Contributed by: Mohamed Hashish, Heba El Abd, Mariam Rabie, Mohamed Selim and Abdelaziz Mohamed, Soliman, Hashish & Partners
• participating with the general trade union in the preparation of draft collective labour agreements, organised primarily under the Labour Law; • participating in the discussion of projects of the production plans of the facility and assisting in their implementation; • participating in the implementation, development and/or amendment of internal regulations and guidelines relating to the regulation of labour and employees’ affairs in the establishment; • implementing the services programmes determined by the general trade union; and • organising and managing the union committee’s affairs and activities freely, without restriction to this right. The Egyptian Income Tax Law No 91 of 2005 provides that the monthly gross salaries of employees shall be subject to taxes, to be deducted from each employ - ee’s monthly gross salary, based on the relevant tax brackets of each employee’s annual salary. Further, in accordance with the Egyptian Social Insur - ance and Pensions Law No 148 of 2019, all Egyptian entities are required to register with the Social Insur - ance Authority and insure their employees. The social insurance contribution’s percentage is 29.75% of the monthly gross salary, capped at EGP16,700, which is required to be paid to the Social Insurance Authority as follows: • 18.75% of the monthly gross salary shall be borne by the employer; and • 11% of the monthly gross salary shall be borne by the relevant employee. 5.2 Taxes Applicable to Businesses Business in Egypt is generally subject to certain taxes such as: • corporate income tax at approximately 22.5 per cent; 5. Tax Law 5.1 Taxes Applicable to Employees/ Employers
• value-added tax (VAT) on goods and services at a 14 per cent standard rate; • withholding tax on certain payments to non-resi - dents such as dividends; • property taxes; • stamp duty on certain documentation, such as leases and deeds; and • capital gains tax on general profits from the sale of assets. Recent amendments were introduced in 2025 to VAT Law No 67 of 2016 (the “VAT Law”) pursuant to Law No 157 of 2025. These amendments introduced new VAT treatments for certain products and services, including changes to the applicable VAT rates and exemptions from VAT for specific products and ser - vices. Such amendments include, inter alia, amendments to the VAT rates applicable to contracting and construc - tion services (ie, supply and installation) and crude oil, as well as VAT exemptions for natural mining and quarry materials in their natural state, excluding crude oil, and donation advertisements for non-profit hospi - Under the Investment Law No 72 of 2017, there are a variety of general tax incentives foreign investors may benefit from, in addition to other additional incentives under the Investment Zones Incentives, such as the free zones or technological zones, which may enjoy certain incentives such as reductions on corporate income tax, custom duties exemption on imported materials and equipment, and reduced VAT rates on certain goods and services. It is worth noting that such incentives vary from one investment zone to the other and the nature of the activities of the business, which shall be confirmed by a local tax adviser. tals and government medical institutes. 5.3 Available Tax Credits/Incentives Additionally, pursuant to the Tax Incentives for Small Businesses Law No 6 of 2025, a number of facilitations and incentives are introduced for small businesses with an annual turnover not exceeding EGP20,000,000. It is important to note that eligibil - ity for these incentives is subject to certain criteria. These incentives may include exemptions and reliefs from stamp taxes, notarisation, and registration fees
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