Frequently Asked Questions (FAQs)

Which are the leading commercial places in Egypt?

Cairo, Alexandria, North Coast, North Coast of Suez, Ain Sokhna, Sharm El-Sheikh, Hurghada are the most attractive commercial places in Egypt. Most of them have free Trade Zones.

 

As an expatriate investor can I set up a trading concern fully owned by me?

The companies act as well as the investment law allows the ownership of a trading concern by an expatriate to 100%. Also, in free trade zones, an expatriate can set up a concern with 100% ownership.

 

What legal forms are required to establish a business in the free zone?    

Branch of Foreign Company, Free Zone Establishment and Free Zone Company are the legal forms required to establish business in free zones.

 

Can I have a General Trading License in Egypt?  

Companies can practice multiple activities with General Trading License with additional fees, which will be levied by licensing authorities in the year of incorporation.

 

What activities require special approval?

The investment and free zone authority and the Capital Market Authority in Egypt directly issues license for most of the activities. Those that require special approval are listed below along with its related Ministry/Department.

•    Medical, Pharmacy etc.- Ministry of Health
•    Air Transport, Air Cargo etc. - Department of Civil Aviation
•    Financial Institutions, Banks, Money Exchange etc.- Central Bank
•    New Industrial Project, Expansion - Ministry of Industry/ Housing & new geographical developments.
•    Publishing, Printing, Newspaper, Advertising, Video film, Photography etc., - Ministry of Media
•    Education, Training etc. - Ministry of Education
•    Agriculture, Veterinary etc.- Ministry of Agriculture
•    Customs Clearance, Freight Forwarding, Sea Cargo etc. - Seaports & Customs Authority
•    Telecommunication Equipment - Ministry of Communication
•    Branch of Foreign Company, Insurance Company, Audit Firm etc. - Ministry of Economy & Commerce

Is there any taxation in Egypt?  

Yes, the rate of tax ranges from 0% to 25% for companies and there is a tax exemption for corporate tax for companies established in free zone areas.

 

How can I obtain my visa to stay in Egypt?    

Visa shall be issued after completing the immigration formalities.

 

 

Can I buy property in Egypt?  

In Egypt, an expatriate can buy properties taking into consideration allowances and permission for Arab nationalities.

 

How secured is this country for investment and living?

The country is very secure for investment and living as majority of the Egyptian population are friendly, welcoming and appreciate all help from foreign investors.

 

Is there any duty or levies charged by government authorities?  

•    The government collects custom duties on imported goods to Arab Republic of Egypt according to custom duties list issued in 2007 and such custom duties percentage ranges from 10% to 30% according to the nature of the product except vehicles.
•    Companies established according to free zone are exempted from custom duties and sales tax for goods imported for their operations.
•    Companies established according to investment and free zone laws are liable at a uniform custom duty rate of 5% on all machinery and equipment needed for their operations.

How efficient are the seaport facilities?    

Egypt has impressive port facilities on its north and east coasts that enable easy access to even the world's largest container ships. The following are the ports in Egypt: Alexandria, Suez, North Coast, Ain Sokhna, Hurghada and Sharm El-Sheikh.

 

What are the recreational facilities available?    

Recreational facilities are available in most of the leading cities in Egypt and range from cinemas, theatres, theme parks and water sports, besides those unique to this region like desert safari etc.

 

What is the climatic condition in Egypt?    

The climate in Egypt is mostly sunny. During summer, the temperature sometimes rises above 40°C. Winter occurs during the months of October until April and is quite cool with temperatures going down to 10°C.

 

Trade Marks & Copyrights    

Do I have to register my trademark?    

No, but there are some exclusive advantages in registration like notice to the public of the registrant's claim of ownership of the mark, a legal presumption of ownership nationwide, and the exclusive right to use the mark on or in connection with the Goods or service set forth in the registration. Trademark of a product or service distinguishes it from other similar products or services. By obtaining the rights to trademark, the owner can prevent unauthorized use of it. Unlike patent rights, the duration of a trademark right can extend to as long as you wish.

 

What works are protected?

Copyright protects "original works of authorship" that are fixed in a tangible form of expression. The creation may not be directly perceptible if it is communicated with the aid of a machine or device. Copyrightable works include the following categories:

 

Literary works;

Musical works, including any accompanying words

Dramatic works, including any accompanying music

Pantomimes and choreographic works

Pictorial, graphic, and sculptural works

Motion pictures and other audiovisual works

Sound recordings

Architectural works

 

How long does a Copyright Protection Endure?

A work that is created (fixed in tangible form for the first time) on or after January 1, 1978, is automatically protected from the moment of its creation and is ordinarily given a term enduring for the author's life plus an additional 70 years after the author's death.

 

What are the tax treatment for partnerships and small limited?

The same tax treatment of corporation with 25% tax rate from annual net profit.

 

What are the exemptions in Egypt tax law?

Profit of land reclamation and agricultural company for 10 years

Profit of poultry production, fattening cattle and fisheries companies for 5 years

 

Are interests on deposits liable for tax?

Interest on deposits for individuals are exempted but not for corporations

 

Are the returns on stocks/ bonds liable for tax?

Return on stocks/ bonds for individuals are exempted and retained losses related with the investments are not to be deducted from future profits or transferred to future periods.

 

Is it possible to transfer losses made by clients to future years to benefit such clients?

The law allows the transfer of annual losses for a period of 5 years for individuals and corporations

 

How the profit of constructions and long-term projects companies are determined?

The profit of these companies is calculated as a percentage of the completed long-term projects on an annual basis with deduction of losses up to profit realized.

 

Is there any tax on the sale or disposals of real estate and lands?

There is a 2,5% tax on the total values of the sale/ disposal of real estate and lands without any expenses deduction.

 

What is the date to submit annual tax return?

Before 1 of the April of the next year after the end of the financial year for individuals  

Before 1 of the May of the next year after the end of the financial year for legal persons

 

What are the tax rates for individuals' profit?

The tax rates are as follows

 

First category                         L.E 5000                                                  Exempted

Second category                     From L.E 5000 to L.E 30000                         10%

Third category                         From L.E 30000 to L.E 45000                       15%

Fourth category                       From L.E 45000 to L.E 250000                     20%

Fifth category                          More than L.E250000                                 25%

 

Are royalties paid by Egyptian companies to resident companies liable for tax?

Yes, royalties paid are liable for 20% tax rate without any deduction for expenses with the attempt to reduce such percentage according to tax agreement between Egypt and the country where the company is resident

 

Are the expenses of head office considered deductable expenses in the tax return for resident companies operating in Egypt?

Yes, it is considered a deductable expense in the range of 10% of the net taxable profit for the resident companies operating in Egypt