EGYPT Law and Practice Contributed by: Mohamed Hashish, Heba El Abd, Farida Rezk, Omar Aboul-Ella, Mariam Rabie and Mohamed Selim, Soliman, Hashish & Partners
agreements, organised primarily under the Labour Law; • participating in the discussion of projects of the production plans of the facility and assist - ing in their implementation; • participating in the implementation, develop - ment and/or amendment of internal regula - tions and guidelines relating to the regula - tion of labour and employees’ affairs in the establishment; • implementing the services programmes determined by the general trade union; and • organising and managing the union com - mittee’s affairs and activities freely, without restriction to this right. 5. Tax Law 5.1 Taxes Applicable to Employees/ Employers 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 employee’s monthly gross salary, based on the relevant tax brackets of each employee’s annual salary. Further, in accordance with the Egyptian Social Insurance and Pensions Law No 148 of 2019, all Egyptian entities are required to register with the Social Insurance Authority and insure their employees. The social insurance contribution’s percentage is 29.75% of the monthly gross salary, capped at EGP14,500, 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; • value-added tax (VAT) on goods and services at a 14 per cent standard rate; • withholding tax on certain payments to non- residents 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. 5.3 Available Tax Credits/Incentives 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 technologi - cal zones, which may enjoy certain incentives such as reductions on corporate income tax, custom duties exemption on imported materi - als 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. 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 eligibility for these incentives is subject to certain criteria. These incentives may include
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