Egypt tax rates 2026: income tax, VAT, withholding and late payment
What are Egypt's income tax, VAT, dividend and late payment rates for 2026? Tables of the rates and thresholds in force, each with its article and law.
Executive summary
- A reference page of the tax rates and thresholds in force in Egypt. Every figure was checked against its official text on 30 September 2026, and the page is updated whenever a figure changes. Every figure is tied to its article and law, and figures that change each year carry their year.
- Companies and other juridical persons: 22.5% of annual net profit, the general rate.
- Individuals in 2026: from nil to 27.5%, with the lower brackets falling away progressively once net income exceeds EGP 600,000.
- VAT: 14%, and 5% on machinery and equipment used to produce goods or render services; from 29 July 2026 the 5% rate also covers medical devices.
- Late payment charge for 2026: 22.50% — the credit and discount rate announced by the Central Bank of Egypt on 1 January 2026 (20.50%) plus 2%.
Income tax on individuals
The table in article 8 of Income Tax Law No. 91 of 2005, as replaced by Law No. 7 of 2024 and in force for 2026, for annual net income not exceeding EGP 600,000:
| Annual net income | Rate |
|---|---|
| Up to EGP 40,000 | 0% |
| Over EGP 40,000 to 55,000 | 10% |
| Over EGP 55,000 to 70,000 | 15% |
| Over EGP 70,000 to 200,000 | 20% |
| Over EGP 200,000 to 400,000 | 22.5% |
| Over EGP 400,000 | 25% |
Above EGP 600,000 the lower brackets fall away progressively. Net income over EGP 600,000 loses the nil band; over 700,000 it loses the 10% band as well; over 800,000 the 15% band; and over 900,000 it is taxed at 22.5% from the first pound up to EGP 400,000. Net income over EGP 1,200,000 is taxed at 25% from the first pound up to 1,200,000, and at 27.5% on the excess. Net income is rounded down to the nearest ten pounds.
These are the standard-regime rates. Businesses registered under the simplified tax regime pay different, reduced rates — see the rates and conditions under the simplified tax regime.
The personal allowance is EGP 20,000 a year (article 13(1) of the same law), and it applies to salary income only, according to Periodic Instruction No. 10 of 2023 of the Egyptian Tax Authority (the ETA). A worked example is in Egypt's personal income tax brackets.
Companies, dividends and property disposals
| Item | Rate | Basis |
|---|---|---|
| Net profits of juridical persons (general rate) | 22.5% | Article 49, first paragraph, as replaced by Law No. 96 of 2015 |
| Dividends | 10%, with no costs deducted | Article 56 bis, as replaced by Law No. 151 of 2026 |
| Dividends on securities listed on the Egyptian Exchange | 5% | The same article |
| Capital gains on securities listed on the Egyptian Exchange | Exempt; losses not deductible; the exemption does not cover a disposal that leads to the company's shares being delisted | Article 50(7), as replaced by Law No. 151 of 2026 |
| Disposal by individuals of built property or land for building, outside villages | 2.5% of the gross value of the disposal, with no reduction | Article 42, as replaced by Law No. 151 of 2026 |
The dividend rate applies to distributions received by non-resident individuals and by resident or non-resident juridical persons, other than distributions in the form of bonus shares. Tax on a property disposal is paid within sixty days of the disposal, and the late payment charge runs from the following day. The exclusion of dividends between resident companies and the exemption for a subsidiary's dividends to its parent are covered in Egypt income tax after Law No. 151.
These too are the standard-regime rates; businesses registered under the simplified tax regime pay different, reduced rates — see the rates and conditions under the simplified tax regime.
VAT
| Item | Rate or threshold | Basis |
|---|---|---|
| General rate | 14% since the 2017/2018 financial year, of which 1% is allocated to social justice programmes | Article 3 of Law No. 67 of 2016, as replaced by Law No. 149 of 2026 |
| Machinery, equipment and medical devices used to produce goods or render services, other than buses and passenger cars | 5%: on machinery and equipment since 2016, and on medical devices from 29 July 2026 | The same article |
| Mandatory registration threshold | EGP 500,000 of taxable and exempt sales in a financial year or part of one; registration within 30 days of reaching it | Article 16 of Law No. 67 of 2016 |
The detail is in VAT registration in Egypt.
Withholding on account of tax and payments to non-residents
| Transaction | Rate | Basis |
|---|---|---|
| Commission, brokerage, and consideration for purchases, supplies, contracting or services paid to private-sector persons, on each amount over EGP 300 | The rate set by decision of the Minister of Finance, not exceeding 5% | Article 59, first paragraph, of Law No. 91 of 2005, as replaced by Law No. 53 of 2014 |
| Fees of the non-commercial professions designated by decision of the Minister, on each amount over EGP 100 | 5% | Article 70 of the same law |
| Payments to non-residents: interest, royalties, service fees, and payments for the activity of athletes and artists | 20% of the gross, with no costs deducted | Article 56 of the same law |
The rate for each kind of article 59 transaction is set by the Minister of Finance's decision issued under that article, while the rate for the non-commercial professions is fixed by article 70 itself. These are the standard-regime rules: a business registered under the simplified tax regime is not subject to withholding on account of tax (article 11 of Law No. 6 of 2025) — see the conditions under the simplified tax regime.
A treaty rate on interest and royalties is not applied at the time of payment: 20% is withheld and the non-resident reclaims the difference. The detail is in Withholding tax and Form 41 in Egypt and Tax on payments to non-residents.
Late payment charge
The late payment charge — on unpaid income tax in excess of EGP 200, and on amounts the law requires to be withheld at source or collected but that are not remitted — is computed on the basis of the credit and discount rate announced by the Central Bank of Egypt (the CBE) on the first of January preceding the date from which the charge runs, plus 2%, disregarding fractions of a month and of a pound (article 110 of Law No. 91 of 2005). The charge may not exceed 100% of the tax on which it is due (article 45 bis of Unified Tax Procedures Law No. 206 of 2020, added by Law No. 7 of 2025). The same basis applies to the charge the ETA owes when it does not refund tax within 45 days of a complete refund claim (article 53 of Law No. 206 of 2020). Each year has its own rate:
| Year | CBE credit and discount rate on 1 January | Late payment charge |
|---|---|---|
| 2021 | 8.75% | 10.75% |
| 2022 | 8.75% | 10.75% |
| 2023 | 16.75% | 18.75% |
| 2024 | 19.75% | 21.75% |
| 2025 | 27.75% | 29.75% |
| 2026 | 20.50% | 22.50% |
The rate announced on 1 January of each year is set out in the ETA's Periodic Instruction No. 1 of 2026.
Thresholds that change the treatment
| Threshold | Effect | Basis |
|---|---|---|
| Annual turnover not exceeding EGP 20 million | The business may apply for the simplified tax regime, under which income tax is a percentage of turnover | Law No. 6 of 2025, articles 1 and 10 |
| Annual turnover not exceeding EGP 10 million | Non-final tax for tax periods from 1 January 2023 to the end of the period before March 2025 is assessed on simplified rules, unless the taxpayer elects ordinary assessment — a transitional provision | Article 4 of Law No. 151 of 2026 |
| Sales of EGP 500,000 | Mandatory VAT registration | Article 16 of Law No. 67 of 2016 |
| None | Every taxpayer carrying on a commercial, industrial, craft or professional activity keeps regular books, without prejudice to Law No. 6 of 2025 | Article 38 of Law No. 206 of 2020, as replaced by Law No. 150 of 2026 |
Stamp duty on securities trading
Charged on the gross value of sales of securities listed on the Egyptian Exchange, other than listed investment certificates, with no costs deducted: 0.5 per thousand on the seller and 0.5 per thousand on the buyer, resident or non-resident, and 0.25 per thousand on each where the purchase and sale take place on the same day (article 83 bis of Stamp Duty Law No. 111 of 1980, as replaced by Law No. 153 of 2026). The detail is in Law 153 of 2026: stamp duty on listed securities.
What this requires
- Check the withholding rates set up in the accounting system against the Minister of Finance's decision in force under article 59, and the 5% rate for the non-commercial professions, and keep payments to non-residents separate from them.
- Use the table of late payment rates above when computing the charge, subject to the 100% cap, and update it each January from the ETA's new periodic instruction.
- For a business with turnover up to EGP 20 million, compare the simplified tax regime of Law No. 6 of 2025 with ordinary assessment before applying for it.
- Apply the 5% VAT rate to medical devices used to produce goods or render services from 29 July 2026.
- Pay the tax on a property disposal within sixty days of the disposal.
The firm's Tax Department applies these rates to each business's position and updates this page whenever a figure changes.
Mahmoud Nassef, Founder Partner
Chartered Accountant, Ministry of Finance, Egypt
Member, Egyptian Society of Accountants & Auditors
Member, Egyptian Tax Society
Member, Egyptian Society for Public Finance and Taxation
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Disclaimer: This bulletin is prepared for general information on the legislation in force at the date of its publication. It does not constitute a professional opinion or tax or legal advice on any particular matter, and it should not be relied upon in place of advice based on an examination of the circumstances of each case. Nassef & Partners International accepts no responsibility for any action taken, or refrained from, in reliance on its contents. The positions stated remain subject to subsequent legislation and decisions.