Moreover, the balance of the tax is due and payable on the date on which the return is submitted. The tax returns are prepared on the basis of self-assessment.
All companies are required to have audited financial statements and must submit a tax return within four months of the end of their financial year. The annual net taxable income is primarily based on the financial statements of the concerned entity, which should be prepared in accordance with the Egyptian Accounting Standards, which are similar to the International Financial Reporting Standards, with a few exceptions. Also, oil exploration and production companies are taxed at a CIT rate of 406%. However, there are different rates for the Suez Canal Authority, the Egyptian Petroleum Authority and the Central Bank of Egypt, which are taxed at a CIT rate of 40%. The CIT rate is 22.5% (flat rate) for corporate bodies, partnerships and PEs. In addition, companies that are non-resident in Egypt, but realise profits through a permanent establishment (PE) in Egypt are also subject to CIT. Corporate Income Tax (Cit)ĬIT is imposed on the companies that are considered to be tax residents in Egypt, on all profits and income realised in Egypt and abroad. This is important in light of the vital changes that have been witnessed in the field of taxation on a global level due to the dramatic, yet persistent fluctuations, in the world economy.
Over the past few years, there have been several changes made to the laws in Egypt that have aimed to reshape the tax system.
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