Egypt: Taxes and Costs
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Moderate taxes in Egypt
Effective Tax Rate on Rental Income |
|||
| Monthly Income | US$1,500 | US$6,000 | US$12,000 |
| Tax Rate | 10.0% | 10.0% | 10.0% |
| Click here to see a worked example | |||
Source: |
Disclaimer | ||
INDIVIDUAL TAXATION
Non-residents are taxed on their income from Egyptian sources. Married couples are taxed separately.
INCOME TAX
Income taxed at progressive rates.
INCOME TAX |
|
| TAXABLE INCOME, EGP (US$) | |
| Up to 5,000 (US$906) | |
| 5,000 – 20,000 (US$3,622) | |
| 20,000 – 40,000 (US$7,244) | |
| Over 40,000 (US$7,244) | |
| Source: Global Property Guide | |
RENTAL INCOME
Rental income derived by non-residents is taxed at the standard income tax rates. Taxable income is gross rent less income-generating expenses. The maximum deduction allowed to cover operating expenses is 50% of the gross rent.
CAPITAL GAINS
There is no capital gains tax in Egypt.
A flat rate of 2.5% of the gross proceeds is levied on sales of real estate or building sites, within the boundaries of Egyptian cities.
PROPERTY TAX
In addition to the real estate and supplementary (khafar) taxes, buildings and agricultural land may also be subject to taxes and duties imposed by the local authorities.
Real Estate Tax
Real estate tax is imposed on Egyptian real properties, payable by the owner. Whether the property is actually leased out or not, the tax is levied on the rental value of the property, which is assessed every 10 years for properties located within city boundaries and agricultural land. The tax base is the assessed gross rental value of the property less 20% to take into account maintenance and expenses.
Residential properties are taxed at progressive rates, from 20% to 40%. Non-residential properties are taxed at 10%. Agricultural land is taxed at a flat rate of 14%.
Residential properties constructed on or after 9 September 1977 and classified as non-luxurious properties are exempted from real estate tax. Real estate tax is deductible for income tax purposes.
Supplementary Tax
Supplementary tax (khafar tax) is imposed at the rate of 20% of the real estate tax payable. Buildings and agricultural land are subject to supplementary taxes (khafar tax).
Residential properties constructed on or after 9 September 1977 and classified as non-luxurious properties are also exempted from khafar tax. Khafar tax is deductible for income tax purposes.
CORPORATE TAXATION
INCOME TAX
Income and capital gains earned by corporations are taxed at a flat rate of 20%. Taxable income is computed by deducting income-generating expenses from the gross income.
Egypt - more data and information
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