Corporate income tax and personal income tax amendments

Through Egypt Decree-Law No. 53/2014 gazetted on 30 June 2014 and effective from 1 July 2014, amendments have been introduced to the country's corporate income tax and personal income tax regulations.

In terms of corporate taxation, dividends paid by domestic companies to both resident and non-resident legal entities will be subject to a 10% withholding tax. The rate will be reduced to 5% where the beneficiary owner holds more than 25% of the share capital of the paying company during a minimum period of 2 years. Dividends paid in the form of free shares are tax exempt.

Profit remittances made by Egyptian permanent establishments of foreign entities will also be taxed at 10%. Profits are systemically considered to be remitted after 60 days following the closing date of the financial year.

Capital gains derived from the disposal of shares held by non-resident companies will be taxed at 10%.