Corporate Tax Rate in Egypt: What Companies Pay in 2025

If you're setting up a company in Egypt or trying to model what your Egyptian subsidiary owes the tax authority, the corporate tax rate in Egypt is the first number you need. It's not one flat figure for everyone — oil, banks, and Suez Canal entities pay differently.

Quick answer

The standard corporate tax rate in Egypt is 22.5% on net taxable profits, set by Law No. 91 of 2005 (Income Tax Law), Article 49. That's the rate that applies to most companies — LLCs, JSCs, branches of foreign companies, and partnerships taxed as corporations. Oil and gas exploration and production companies pay 40.55%. The Central Bank of Egypt, Suez Canal Authority, and Egyptian General Petroleum Corporation pay 40%. Banks operating under CBE licensing pay 22.5% on regular activity, but a separate 20% rate applies to treasury bill and bond interest income.

Who pays what

The 22.5% headline rate covers the vast majority of businesses. Whether you're a joint stock company (JSC), a limited liability company (LLC), a partnership limited by shares, or a branch of a foreign parent — the corporate tax rate in Egypt on your net profits is the same 22.5%.^[1]

The exceptions are narrow but important:

• Oil and gas exploration and production: 40.55% under Article 47 of the Income Tax Law.^[2]
• Central Bank of Egypt, Suez Canal Authority, Egyptian General Petroleum Corporation (EGPC): 40%.
• Banks: 22.5% on general business, with a separate withholding regime for interest on government securities.

Small enterprises with turnover under EGP 10 million now fall under a simplified tax regime introduced by Law No. 6 of 2025, which replaces the standard corporate tax rate in Egypt with a tiered turnover-based tax ranging from 0.4% to 1.5%.^[3] Honestly, if your revenue is under EGP 10M, check this regime before defaulting to 22.5% — the math often favors it.

What "net taxable profits" actually means

The 22.5% doesn't hit gross revenue. It applies to accounting profit adjusted for tax purposes: add back non-deductible expenses (excess entertainment, provisions, most fines, undocumented costs), then deduct anything the law allows (depreciation per Article 25, R&D up to 10% of net profit, donations to government within limits).

Losses carry forward five years under Article 29. There's no group consolidation — each Egyptian entity files separately, even if it's part of a bigger corporate group.

Watch the transfer pricing rules. If you transact with related parties, the Egyptian Tax Authority (ETA) expects arm's-length pricing and Master File / Local File documentation for taxpayers above the thresholds set in the 2018 TP Guidelines (updated 2023).^[4] Getting this wrong is a favorite target for audits.

Additional taxes you'll owe on top

The corporate tax rate in Egypt isn't the only line on your tax bill. Layer these in:

• Dividend withholding: 5% for dividends paid to resident or non-resident shareholders where the parent holds ≥25% for 2+ years; otherwise 10%.^[5]
• Withholding on services to non-residents: 20% on royalties, interest, and service fees, subject to tax treaty relief.
• Value Added Tax (VAT): 14% standard rate under Law No. 67 of 2016. Not a profit tax — it flows through — but registration is mandatory at EGP 500,000 annual turnover.
• Real estate tax: on owned commercial property, separately assessed.
• Payroll tax: withheld monthly at progressive rates on employee salaries.

Watch out: Free zone companies under Investment Law No. 72 of 2017 were historically exempt from corporate income tax, but the 2015 amendments carved out oil, fertilizer, iron and steel, and some other industries. New free zone applications also face restrictions. Confirm your activity qualifies before assuming a 0% rate.

Filing deadlines and penalties

Corporate tax returns are due within 4 months of the fiscal year-end. For a calendar-year company, that's April 30. Advance quarterly installments aren't required in the classic sense, but large taxpayers under the Large Taxpayer Center have specific procedural obligations.

Late filing triggers penalties under Articles 133-135 of the Income Tax Law — a percentage of tax due plus delay interest tied to the CBE credit and discount rate plus 2%. Underpayment discovered on audit adds a further evasion or negligence penalty depending on intent.

E-filing through the ETA portal is now mandatory for all corporate taxpayers, and e-invoicing compliance is enforced — non-compliant invoices are non-deductible. This is where companies still get burned in 2025.

For more on Egyptian tax obligations, see our answers on tax law.

The bottom line

Budget 22.5% on net profit as your baseline corporate tax rate in Egypt, then layer dividend withholding, VAT, and payroll on top. If you're in oil and gas, price in 40.55%. If you're under EGP 10M in turnover, look hard at the simplified regime — it can cut your effective rate substantially. And if you're relying on a free zone exemption or a tax treaty rate, get the documentation nailed down before you file, not after the ETA sends a query.